Deere raises 2026 net income forecast after first quarterly profit rise in three years

On August 20, Deere, the world's leading farm equipment manufacturer, announced on Thursday that it had raised its 2026 net income forecast. This came after the company experienced its first increase in quarterly profit in nearly three years, driven by strong demand for small tractors and construction equipment.

A combination of rising U.S. government and private spending on infrastructure, along with the expansion of AI-driven data centers, had increased demand for construction equipment. Deere's construction and forestry segment proved to be its fastest-growing business in the reported quarter.

The positive trend allowed the company to cope with a prolonged shortage of demand for its large tractors and combine harvesters, despite rising costs and declining agricultural yields. Deere reported a profit of $5.10 per share for the quarter ended August 2, which was an improvement from $4.75 per share a year earlier. The company's quarterly revenue grew by 6% to $11 billion.

Deere, the manufacturer of John Deere tractors, now anticipates a net income of $4.75 billion to $5 billion for 2026, a revision from its previous forecast of $4.5 billion to $5 billion. The company's shares saw a 2% increase in pre-market trading.