John Deere reported a year-over-year revenue increase of 12.9% for the first quarter of 2026 that the Moline-based Fortune 100 company said was fueled by increased customer demand in small ag and construction machinery that will help lay the foundation for future growth.
Deere’s stock price also rose today, Feb. 19, after an already strong month as the global maker of agriculture, construction and forestry equipment raised its full-year 2026 profit forecast to between $4.5 billion and $5.0 billion in its Q1 report. Those gains came despite continuing tariff challenges and ongoing low large ag equipment demand.
Deere’s first-quarter net income of $656 million, or $2.42 per share, for the quarter that ended Feb. 1, blew past Zack’s Consensus estimate of $1.92 per share. It also came despite a 25% year-over-year decline in first quarter income from that $869 million, or $3.19 per share, recorded in the same quarter ended Jan. 26, 2025. Deere was trading at $670.67 per share, up $77.53 or 13%, at 11:30 a.m. Thursday.
Over the past four quarters, the company also has surpassed consensus earnings per share estimates three times, Zacks Investment Research said today. In addition, Deere shares have increased by about 27.4% since the start of the year compared to the S&P 500’s gain of 0.5%.
“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,” Deere & Co. Chairman and CEO John C. May said in the earnings release.
“These positive developments reinforce our belief that 2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward.”
Following the earnings report, Deere also said it will call back 27 laid-off workers to its John Deere Dubuque Works plant in March.
Some growth anticipated
In the quarter ahead, the company also said it anticipates growth in its Small Ag & Turf and Construction & Forestry divisions, as well as a projected decline in the Production & Precision Ag segment. And it also reported today that its “financial health remains robust, with strong operating and net margins, although some valuation metrics are near historical highs.”
In addition, Deere Worldwide net sales and revenues increased 13% to $9.611 billion in the most recent quarter from $8.508 billion a year ago.
Net sales were $8.001 billion for the quarter, compared with $6.809 billion in the same quarter of 2025, the report said.
“Our sustained investment in research and development throughout the cycle is yielding measurable results as we move toward launching a wide range of innovative products and solutions across all business segments,” Mr. May said.
“These advancements underscore the value of maintaining a robust portfolio that spans broad markets and regions worldwide, which should position us for success as we transition out of the current cycle,” he added.
Results by division
According to the Q1 report, each of Deere’s equipment divisions posted increased sales over the same quarter last year. That included:
- Production & Precision Agriculture – Sales increased 3% to $3.163 billion in 2026 from $3.067 billion last year. Operating profit fell 59% from $338 million last year to $139 million this year. The operating margin also fell from 11% last year to 4.4% this year.
- Small Agriculture & Turf – Net sales increased 24% from $1.748 billion last year to $2.168 billion this quarter as a result of higher shipment volumes and positive effects of foreign currency translation. Operating profit increased 58% from $124 million last year to $196 million primarily due to higher shipment volumes, sales mix and price realization, which were partially offset by higher tariffs.
- Construction & Forestry – Net sales increased year over year by 34% from $1.994 billion to $2.670 billion as a result of higher shipment volumes and positive effects of foreign currency translation. Operating profit increased from $65 million a year ago to $137 million primarily due to higher shipment volumes, sales mix and production efficiencies, partially offset by higher tariffs.
- Financial Services – Net income increased 6% from $230 million in Q1 2025 to $244 million in Q1 2026 primarily due to favorable financing spreads and a lower provision for credit losses.
By segment outlook
Deere & Co. also shared its outlook for Fiscal 2026 by segment:
- Production & Precision Ag – Net sales down 5%-10%.
- Small Ag & Turf – Up 15%.
- Construction & Forestry – Up 15%.
The global equipment maker also shared an industry outlook. That included:
- U.S. & Canada – Large ag, down 15%-20%; Small ag & turf, flat to up 5%.
- Europe – Flat to up 5%.
- South America – Tractors & Combines: Down 5%
- Asia – Flat to down 5%.
In the Construction & Forestry division Deere’s outlook for fiscal year 2026 included:
- U.S. & Canada – Construction Equipment, up 5%; Compact Construction Equipment, up 5%.
- Global forestry – Flat.
- Global roadbuilding – Flat to up 5%
