Deere lifts full-year profit forecast on construction, sales recovery; shares up

Reuters

Thu, February 19, 2026 at 8:46 PM GMT+9 2 min read

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Feb 19 (Reuters) - Farm-machinery maker Deere & Co raised its annual profit forecast on Thursday citing a rebound in its construction and small ‌agriculture businesses and cost cuts that mitigated weak equipment demand, sending ‌its shares up 4.7% before the bell.

The world’s largest farm-equipment maker previously scaled back factory ​production to counter weak demand for new machinery as lower crop prices and higher input costs push farmers to postpone big-ticket purchases.

The company is also working closely with dealers across its network to reduce inventory levels.

U.S. farmers are heading into ‌another season of weak ⁠crop prices and elevated costs, forcing tough decisions about how, or if, to continue operating as ample grain supplies pressure ⁠markets.

The company expects net income for 2026 to range between $4.5 billion and $5 billion, compared with its prior forecast of $4 billion to $4.75 billion.

“While the global large agriculture industry ​continues to ​experience challenges, we’re encouraged by the ​ongoing recovery in demand within both ‌the construction and small agriculture segments,” CEO John May said.

“These positive developments reinforce our belief that 2026 represents the bottom of the current cycle.”

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Deere now expects 2026 net sales in two segments - Small Agriculture & Turf and Construction & Forestry - to rise about 15% each compared with its earlier forecast for a ‌roughly 10% increase.

U.S. President Donald Trump’s sweeping tariffs ​have weighed on its operating profits, making ​Deere one of the many ​industrial companies affected by policy shifts from the White House.

The ‌Moline, Illinois-based firm has struggled from ​higher, tariff-driven production costs ​as it relies significantly on imported raw materials to manufacture its green and yellow tractors.

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It posted net income of $656 million, or $2.42 per share, ​for the quarter, down ‌from $869 million, or $3.19 per share, a year ago.

Deere’s first-quarter revenue rose ​13% to $9.61 billion, from $8.50 billion a year ago.

(Reporting by Abhinav Parmar ​in Bengaluru; Editing by Pooja Desai)

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