Deere & Co. (NYSE:DE) shares gained more than 3% in premarket trading on Thursday after the agricultural equipment manufacturer delivered fiscal third-quarter results that exceeded Wall Street expectations on both revenue and earnings.
The company reported earnings of $5.10 per share, comfortably ahead of the analyst consensus of $4.69. Revenue increased 5% year on year to $12.61 billion, significantly above market expectations of $10.81 billion.
Deere points to resilience across key markets
Management attributed the stronger-than-expected quarter to disciplined execution and the company’s ability to navigate varying conditions across its major agricultural equipment markets.
“Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio,” said CEO John May. “Our performance underscores the strength of our business, supported by stable U.S. market conditions, our ability to manage softer conditions in Brazil and Europe, and our commitment to helping customers succeed.”
Stable conditions in the U.S. helped support performance, while Deere continued to manage weaker demand across Brazil and Europe.
The results provided investors with evidence that the company is maintaining profitability despite the broader downturn affecting parts of the agricultural machinery industry.
Full-year profit guidance range tightened
Following the stronger third-quarter performance, Deere narrowed its full-year net income forecast to between $4.75 billion and $5.00 billion.
The company had previously projected net income of between $4.5 billion and $5.0 billion. The revised range compares with the analyst estimate of approximately $4.87 billion.
By raising the lower end of its forecast while maintaining the upper end, Deere provided greater visibility into expected full-year profitability as it moves through the final quarter of fiscal 2026.
Deere expects agricultural equipment cycle to bottom in 2026
Management also maintained its view that the current downturn in agricultural equipment demand is approaching its low point.
“As we look ahead, we continue to believe 2026 will mark the bottom of the current ag equipment cycle,” May said. “Across our business, early order program trends, improving used-equipment inventories, and increasing customer adoption of our advanced technologies give us confidence that Deere is well positioned for long-term value creation.”
Early ordering trends and improving inventories of used equipment are providing Deere with greater confidence in the eventual recovery, while increased adoption of the company’s advanced technologies offers another potential source of longer-term growth.
The combination of an earnings beat, revenue significantly above forecasts and a tighter full-year profit outlook drove the positive premarket reaction. Investors will now be watching for further evidence that agricultural equipment demand is stabilising and that 2026 does indeed represent the bottom of the current industry cycle.
Deere & Company stock price
