Companies / Results
Deere’s quarterly net income rose 7% as management called 2026 the bottom of the equipment cycle.
Reported sales and earnings improved, while the cycle claim remains a management outlook to test against orders and inventories.
Sources
Deere third-quarter fiscal 2026 earnings release furnished with Form 8-K on August 20, 2026.
Deere reported $1.379 billion of net income for the fiscal third quarter ended August 2, 2026, up 7% from $1.289 billion a year earlier. Diluted EPS was $5.10 compared with $4.75.
Worldwide net sales and revenues increased 5% to $12.608 billion, while equipment net sales were $10.999 billion. Production and Precision Agriculture sales declined 6%, Small Agriculture and Turf sales increased 12%, and Construction and Forestry sales increased 18%. For the first nine months, net income declined 4% to $3.808 billion. Deere forecast full-year net income attributable to the company of $4.75–$5.00 billion.
The quarter improved while the year-to-date comparison remained negative. That split matters in a cyclical equipment business: one stronger quarter can coexist with a weaker nine-month profit total. The company cited stable U.S. conditions alongside softer conditions in Brazil and Europe.
The recovery was uneven inside the portfolio. Production and Precision Agriculture sales fell 6% and its operating profit fell 9%. Small Agriculture and Turf sales rose 12%, while Construction and Forestry sales rose 18% and operating profit rose 84%. The quarter also included $110 million of tariff recoveries, which belongs beside the profit comparison.
Management said it believed 2026 would mark the bottom of the current agricultural-equipment cycle, pointing to early-order trends, improving used-equipment inventories and customer adoption of advanced technologies. The $4.75–$5.00 billion full-year net-income forecast makes that view measurable, but the cycle claim remains an interpretation to test against later orders, shipments and inventories.
A cycle bottom is a forecast
Management can identify evidence that demand may be stabilizing, but a cycle bottom is only confirmed by later orders, shipments, prices and inventories. It is not the same kind of fact as quarterly net income.
Quarterly improvement meets a weaker nine-month base
Third-quarter net income increased 7% while nine-month net income declined 4%. The $4.75–$5.00 billion full-year range and order/inventory indicators make management’s cycle thesis testable.
What we do not know
The release does not establish the timing or strength of an agricultural-equipment recovery. Regional conditions, commodity economics and customer investment can change. No security-price conclusion is made.
Related Learn
Corrections
We do not silently rewrite a published line. A correction is a new labeled piece, not an invisible edit.