Deere reported third quarter earnings per share of $5.10, beating Wall Street’s estimate of $4.69. Revenue came in at $12.61 billion, well above the $10.81 billion consensus. The stock was up 0.6% in premarket trading at $584.
A year ago, Deere posted EPS of $4.75 on sales of about $7.3 billion. This quarter, agricultural equipment sales alone came to roughly $7.4 billion. So while the growth is modest, it’s moving in the right direction.
DEERE $DE Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $11.0B (Est. $10.74B) 🟢; +6% YoY
🔹 EPS: $5.10 (Est. $4.71) 🟢; +7% YoY
🔹 Net Income: $1.4B (Est. $1.27B) 🟢; +7% YoY
🔹 Construction & Forestry Sales: $3.6B; +18% YoYRaises FY26 Guide:
🔹 Net Income: $4.75B-$5.00B; from… pic.twitter.com/EQE9wROYqV— Wall St Engine (@wallstengine) August 20, 2026
The results cleared a low bar, but that bar was set pretty low for a reason. Farmer income has been under pressure for a while, with corn prices well off their highs. Corn was trading north of $6 per bushel in early 2022 and hit above $8 at points. That kind of income drives equipment spending. It hasn’t been that kind of market lately.
Deere’s equipment sales peaked at around $41 billion in fiscal year 2023. They fell to $32 billion in fiscal year 2024 and $28 billion in fiscal year 2025. Sales in 2026 are expected to stay at roughly $28 billion before recovering to around $30 billion in 2027.
That context makes Thursday’s beat feel more like a sigh of relief than a celebration.
Deere raised its full-year 2026 net income guidance to between $4.75 billion and $5 billion, up from the $4.5 billion to $5 billion range it gave in May. The May guidance had disappointed investors at the time, since Deere actually earned around $5 billion in fiscal year 2025.
JPMorgan analyst Tami Zakaria had flagged ahead of earnings that data from Brazil and North America were trending worse than Deere’s own outlook. That call held up. Deere trimmed its industry sales expectations across multiple regions.
Large-equipment sales in North America are still expected to fall 15% to 20%. South America guidance was nudged down to a 15%-20% decline from the prior estimate of roughly 15%. The European outlook was cut to flat, down from a previous range of flat to up 5%.
Those revisions are weighing on margins in Deere’s large agriculture machinery segment.
Zakaria has since cut her fiscal year 2027 EPS estimate to $20.49, down from $22.81. The broader Wall Street consensus sits at $22.19 for 2027, up from $18.08 expected this year.
She rates the stock Hold with a $570 price target and notes investor sentiment is currently skewed negative.
Deere’s stock trades at about 27 times forward earnings. Three years ago, when the ag business was in better shape, that multiple was closer to 12 times.
Coming into Thursday, DE was down about 1% over the past month but up roughly 19% over the past 12 months. The stock has gained around 31% year to date entering this week.
Deere’s Financial Health score is rated “fair performance” by InvestingPro.
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