Deere & Company Q3 2026 Earnings Recap

The stock rallied 11.5% following Deere’s earnings, driven by robust volume growth and strong price realization across construction, forestry, and small ag & turf segments, which offset ongoing weakness in the production and precision ag segment.

Key Takeaways

• Net sales increased 5% to $12.6 billion, with equipment operations up 6%, reflecting broad-based strength.
• Production and precision ag sales declined 6% year-over-year due to lower shipment volumes despite positive pricing (+2.5 points) and currency benefits (+1.5 points). Operating margin contracted amid higher production costs.
• Small ag and turf sales rose 12% supported by higher volumes and favorable pricing (+1.5 points), achieving an 18.4% operating margin.
• Construction and forestry segment showed an 18% sales increase, driven by volume gains and an 8-point price realization lift, achieving a 12.1% operating margin despite elevated SG&A and R&D expenses.
• Fiscal 2026 guidance narrowed with production and precision ag sales now expected down ~10%, reflecting softening markets in South America and Europe; small ag and turf sales outlook raised to ~15% growth with margin improvement; construction forestry industry sales forecast also revised upward.