Deere & Company beats Q3 2026 estimates, raises annual guidance

Deere & Company reported strong third-quarter fiscal 2026 results, with revenue reaching $12.61 billion, surpassing analyst estimates of $10.81 billion. Net sales and revenues grew by 5%, while adjusted earnings per share rose 7% to $5.10, beating the $4.71 consensus. The company also raised its full-year profit guidance to a range of $4.75 billion to $5.0 billion.

While the core agricultural market has faced pressure from geopolitical issues and extreme weather, growth in the compact machinery and lawn care segments helped offset declines in large-scale machinery. Additionally, demand for infrastructure-related equipment, such as tools for data center construction, provided a significant buffer.

Following the report, several financial institutions raised their price targets for Deere stock. Oppenheimer set a target of $685, Bank of America raised its target to $667, and Citi increased its target to $650, citing potential for an agricultural recovery and strong equipment bookings for 2027. Analysts noted that the company appears to be nearing the bottom of the current agricultural equipment cycle.