Deere & Company Raises 2026 Profit Forecast
Analysis based on 8 articles · First reported Feb 19, 2026 · Last updated Feb 19, 2026
The positive earnings report and increased forecast from Deere & Company are expected to boost investor confidence in the agricultural and construction equipment sectors. However, the broader farming industry faces challenges from weak crop prices and high input costs, as highlighted by the United States===United States Department of Agriculture, which could temper long-term demand.
Deere & Company, a farm-machinery maker, raised its full-year net income forecast for 2026 to between $4.5 billion and $5 billion, up from a prior forecast of $4 billion to $4.75 billion. This positive outlook follows stronger-than-expected first-quarter results, with revenue rising 13% to $9.61 billion. The company attributed its improved performance to earlier cost-cutting measures and a recovery in demand within its construction and small agriculture segments, despite ongoing challenges in the global large agriculture industry. CEO John May expressed optimism, suggesting 2026 marks the bottom of the current cycle. Deere & Company's shares saw a significant increase in premarket trading following the announcement. The company has also been actively working with dealers to reduce inventory levels. Historically, Deere & Company has faced headwinds from tariffs imposed by Donald Trump, which increased production costs.
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