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DE Q3 Earnings Beat Estimates on Construction & Turf Strength
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Key Takeaways
Deere's Q3 earnings rose 7.4%, beating estimates as Construction & Forestry and Turf drove growth.
Construction & Forestry sales jumped 18% y/y, while operating profit surged 84% on pricing and volumes.
Deere raised its FY26 net income guidance to $4.75-$5 billion amid improving industry trends.
Deere & Company (DE - Free Report) has reported third-quarter fiscal 2026 earnings of $5.10 per share, rising 7.4% year over year and beating the Zacks Consensus Estimate of $4.79 by 6.47%. Strength in Construction & Forestry and Small Agriculture & Turf offset weakness in Production & Precision Agriculture.
Net sales from Deere’s equipment operations were $11 billion in third-quarter fiscal 2026, up 6.2% from the year-ago quarter’s $10.36 billion, reflecting strength in Small Agriculture & Turf and Construction & Forestry despite weakness in Production & Precision Agriculture. The top line beat the Zacks Consensus Estimate of $10.81 billion.
Total net sales (including Financial Services and other income) rose 5% year over year to $12.61 billion. Top-line growth was supported by higher shipment volumes and favorable price realization in Small Agriculture & Turf and Construction & Forestry, partly offset by lower shipment volumes in Production & Precision Agriculture.
The cost of sales in the reported quarter increased 4.9% from the prior-year quarter to $7.94 billion. Total gross profit rose 9.8% year over year to $3.06 billion. Selling, administrative and general expenses (SA&G) were flat at $1.22 billion.
Total operating profit (including Financial Services) increased 18% year over year to $1.86 billion in the fiscal third quarter.
DE’s Segment Performances in Q3
The Production & Precision Agriculture segment’s net sales declined 6% year over year to around $4 billion due to lower shipment volumes, partially offset by favorable price realization and foreign currency translation. Segment operating profit fell 9% from the year-ago quarter to $527 million, reflecting lower shipment volumes and sales mix, and higher production costs, partially offset by favorable price realization and foreign currency exchange.
Small Agriculture & Turf net sales increased 12% year over year to $3.38 billion on higher shipment volumes and favorable price realization. Operating profit rose 28% year over year to $622 million, driven mainly by higher shipment volumes and sales mix, and favorable price realization, partially offset by higher production costs.
Construction & Forestry net sales were $3.62 billion, up 18% year over year, primarily on higher shipment volumes and favorable price realization. Operating profit surged 84% year over year to $436 million, aided mainly by favorable price realization, partially offset by higher selling, administrative, general and R&D costs.
Sales in Deere’s Financial Services division were $1.37 billion in the quarter, down 3% year over year. The segment’s operating profit increased 2% year over year to $271 million. Net income for Financial Services climbed 7% year over year to $219 million in the fiscal third quarter due to favorable financing spreads, partially offset by a lower average portfolio.
Deere’s Q2 Cash Position
Cash and cash equivalents totaled $8.93 billion as of Aug. 2, 2026, up from $8.28 billion at the end of fiscal 2025. Net cash provided by operating activities was $3.25 billion for the first nine months compared with $3.46 billion a year earlier. Deere also repurchased $697 million of common stock and paid out $1.32 billion in dividends.
DE's FY26 Outlook
Deere raised its fiscal 2026 net income forecast to $4.75-$5 billion from the $4.5-$5 billion mentioned earlier. Equipment Operations net operating cash flow is expected to be $5-$5.50 billion, while capital expenditure is projected to be $1.30 billion and the effective tax rate is expected to be 24-26%.
The company continues to view 2026 as the bottom of the current agriculture equipment cycle. Early order program trends, improving used-equipment inventories and increased customer adoption of advanced technologies underpin its confidence in the company's longer-term positioning.
Deere’s Share Price Performance
Shares of the company have gained 19.3% in the past year compared with the industry’s 15.2% growth.
Lindsay Corporation (LNN - Free Report) reported third-quarter fiscal 2026 earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line declined 14% year over year.
Lindsay’s sales totaled $160.8 million, down 5% year over year. The top line missed the Zacks Consensus Estimate of $169 million by 5.15%. Irrigation softness outweighed infrastructure growth. The quarter reflected persistent demand challenges in North America and Brazil.
CNH Industrial N.V. (CNH - Free Report) reported second-quarter 2026 adjusted EPS of 13 cents, which declined from 17 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 11 cents.
In the second quarter, CNH Industrial’s net sales grew 2% from the year-ago level to $4.80 billion and topped the Zacks Consensus Estimate of $4.76 billion.
AGCO Corp. (AGCO - Free Report) delivered adjusted earnings per share of $1.43 in second-quarter 2026, missing the Zacks Consensus Estimate of $1.54 by 7.14%. AGCO Corp posted adjusted EPS of $1.35 in the year-ago quarter.
Net sales declined 1% year over year to $2.61 billion and missed the consensus estimate of $2.73 billion. Excluding the favorable currency-translation impacts of 2.7%, net sales fell 3.7% year over year.
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DE Q3 Earnings Beat Estimates on Construction & Turf Strength
Key Takeaways
Deere & Company (DE - Free Report) has reported third-quarter fiscal 2026 earnings of $5.10 per share, rising 7.4% year over year and beating the Zacks Consensus Estimate of $4.79 by 6.47%. Strength in Construction & Forestry and Small Agriculture & Turf offset weakness in Production & Precision Agriculture.
Net sales from Deere’s equipment operations were $11 billion in third-quarter fiscal 2026, up 6.2% from the year-ago quarter’s $10.36 billion, reflecting strength in Small Agriculture & Turf and Construction & Forestry despite weakness in
Production & Precision Agriculture. The top line beat the Zacks Consensus Estimate of $10.81 billion.
Total net sales (including Financial Services and other income) rose 5% year over year to $12.61 billion. Top-line growth was supported by higher shipment volumes and favorable price realization in Small Agriculture & Turf and Construction & Forestry, partly offset by lower shipment volumes in Production & Precision Agriculture.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
Deere’s Profits Rise in Q3
The cost of sales in the reported quarter increased 4.9% from the prior-year quarter to $7.94 billion. Total gross profit rose 9.8% year over year to $3.06 billion. Selling, administrative and general expenses (SA&G) were flat at $1.22 billion.
Total operating profit (including Financial Services) increased 18% year over year to $1.86 billion in the fiscal third quarter.
DE’s Segment Performances in Q3
The Production & Precision Agriculture segment’s net sales declined 6% year over year to around $4 billion due to lower shipment volumes, partially offset by favorable price realization and foreign currency translation. Segment operating profit fell 9% from the year-ago quarter to $527 million, reflecting lower shipment volumes and sales mix, and higher production costs, partially offset by favorable price realization and foreign currency exchange.
Small Agriculture & Turf net sales increased 12% year over year to $3.38 billion on higher shipment volumes and favorable price realization. Operating profit rose 28% year over year to $622 million, driven mainly by higher shipment volumes and sales mix, and favorable price realization, partially offset by higher production costs.
Construction & Forestry net sales were $3.62 billion, up 18% year over year, primarily on higher shipment volumes and favorable price realization. Operating profit surged 84% year over year to $436 million, aided mainly by favorable price realization, partially offset by higher selling, administrative, general and R&D costs.
Sales in Deere’s Financial Services division were $1.37 billion in the quarter, down 3% year over year. The segment’s operating profit increased 2% year over year to $271 million. Net income for Financial Services climbed 7% year over year to $219 million in the fiscal third quarter due to favorable financing spreads, partially offset by a lower average portfolio.
Deere’s Q2 Cash Position
Cash and cash equivalents totaled $8.93 billion as of Aug. 2, 2026, up from $8.28 billion at the end of fiscal 2025. Net cash provided by operating activities was $3.25 billion for the first nine months compared with $3.46 billion a year earlier. Deere also repurchased $697 million of common stock and paid out $1.32 billion in dividends.
DE's FY26 Outlook
Deere raised its fiscal 2026 net income forecast to $4.75-$5 billion from the $4.5-$5 billion mentioned earlier. Equipment Operations net operating cash flow is expected to be $5-$5.50 billion, while capital expenditure is projected to be $1.30 billion and the effective tax rate is expected to be 24-26%.
The company continues to view 2026 as the bottom of the current agriculture equipment cycle. Early order program trends, improving used-equipment inventories and increased customer adoption of advanced technologies underpin its confidence in the company's longer-term positioning.
Deere’s Share Price Performance
Shares of the company have gained 19.3% in the past year compared with the industry’s 15.2% growth.
DE’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Look at Deere’s Peer Performances
Lindsay Corporation (LNN - Free Report) reported third-quarter fiscal 2026 earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line declined 14% year over year.
Lindsay’s sales totaled $160.8 million, down 5% year over year. The top line missed the Zacks Consensus Estimate of $169 million by 5.15%. Irrigation softness outweighed infrastructure growth. The quarter reflected persistent demand challenges in North America and Brazil.
CNH Industrial N.V. (CNH - Free Report) reported second-quarter 2026 adjusted EPS of 13 cents, which declined from 17 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 11 cents.
In the second quarter, CNH Industrial’s net sales grew 2% from the year-ago level to $4.80 billion and topped the Zacks Consensus Estimate of $4.76 billion.
AGCO Corp. (AGCO - Free Report) delivered adjusted earnings per share of $1.43 in second-quarter 2026, missing the Zacks Consensus Estimate of $1.54 by 7.14%. AGCO Corp posted adjusted EPS of $1.35 in the year-ago quarter.
Net sales declined 1% year over year to $2.61 billion and missed the consensus estimate of $2.73 billion. Excluding the favorable currency-translation impacts of 2.7%, net sales fell 3.7% year over year.