Deere Q3 2026 Beats Expectations, Raises FY26 Outlook as Sales Surge

Deere & Company beat expectations for its fiscal third quarter ended August 2, 2026, reporting net income of $1.379 billion, or $5.10 per share, on total net sales and revenues of $12.61 billion, up 5% from a year earlier. Shares of DE rose on the print as investors focused on the mix behind the beat rather than the headline growth rate.

Construction and forestry did the heavy lifting. Segment net sales climbed 18% to $3.62 billion and segment operating profit surged 84% to $436 million, offsetting continued softness in the agriculture equipment business. Management reiterated its view that 2026 marks the bottom of the current farm equipment cycle, a framing that matters more to the multi-year story than any single quarter.

On the back of the quarter, Deere raised the low end of its full-year 2026 net income guidance to $4.75 billion from $4.5 billion, leaving the top of the range at $5.0 billion. Tariffs remain a visible swing factor: the company recognized $110 million of incremental tariff refunds in the quarter, bringing fiscal-year refunds recognized to $382 million against roughly $1.1 billion of expected direct tariff expense, for net exposure near $750 million. Deere's current outlook assumes no further refunds for the balance of the year.

What to watch from here is whether construction demand holds up as interest-rate expectations shift, and whether the agriculture trough thesis is confirmed by order books rather than commentary. The guidance raise came from the bottom of the range rather than the top, so the quarter reads as de-risking the year rather than resetting it upward.

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