Deere Q3 2026: Revenue Beats by 17% as Construction Surges
As seen on the 24/7 Wall St. homepage on August 20, 2026.
Deere raised full-year net income guidance to $4.75 billion to $5.00 billion and called 2026 the bottom of the ag equipment cycle, the first clear signal farm machinery demand has stopped sliding. Construction and forestry carried the quarter, with operating margin expanding to 12.1% from 7.7%.
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Deere posted fiscal third-quarter revenue of $12.61 billion, beating analyst expectations by 17.5%, with earnings per share also topping consensus. Five consecutive quarters of EPS beats is the kind of consistency that gets institutional investors' attention.
Construction and Forestry carried the quarter, with net sales up 18% and operating margin expanding sharply from a year earlier. Small Agriculture and Turf also contributed on higher shipment volumes and favorable pricing.
CEO John May said the company believes 2026 will mark the bottom of the current agricultural equipment cycle, citing improving early order program trends and shrinking used-equipment inventories. An explicit cycle-trough call from management carries real weight for investors trying to time a recovery in farm machinery demand.
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Deere raised its full-year net income guidance to a range of $4.75 billion to $5.00 billion. Continued dividends and buybacks signal confidence in cash generation even as the ag segment works through a down cycle.
Results include $110 million in tariff recoveries booked during the quarter, against a pretax impairment charge on overseas battery operations assets in the year-ago period. Those items are worth noting when comparing the two periods directly.
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