Deere Raises Full-Year Outlook Amid Mixed Quarterly Results

Deere & Co. raises its full-year outlook despite a profit dip, citing strong revenue growth and strategic tech investments signaling a potential market recovery.

Deere & Company's first-quarter performance for fiscal 2026 presented a complex picture, marked by a decline in profit but a stronger-than-expected revenue increase. The agricultural machinery giant responded by raising its annual forecast, with CEO John May positioning the company at an inflection point and signaling a recovery in key operational segments is underway.

Market Confidence Reflects Upward Revision

Investors have responded positively to management's upgraded guidance. Deere's shares are currently trading at €547.30, a level that places them a mere 2.7% below the 52-week high of €562.30 recorded on February 20, 2026. The stock has advanced 37.36% since the start of the year.

• Previous Close (Tuesday): €547.30
• Year-to-Date Performance: +37.36%
• 52-Week High: €562.30 (February 20, 2026)
• Distance from 52-Week High: -2.67%

Diverging Segment Performance Underpins Results

The company's consolidated revenue for the quarter rose 13% year-over-year to approximately $9.6 billion. This growth provided the impetus for boosting the full-year net income forecast for fiscal 2026. The new projection is now set between $4.5 billion and $5.0 billion, up from a prior expectation that capped out at $4.75 billion.

This overall optimism, however, masks a significant divergence between Deere's business units. The Production and Precision Agriculture division, which focuses on large-scale farming equipment, is anticipated to see a sales decrease of 5% to 10%. In contrast, the company forecasts robust growth of about 15% for both its Small Agriculture & Turf segment and its Construction & Forestry division.

Net income for the quarter fell to $656 million, down from $869 million reported in the same period last year.

Strategic Moves to Navigate Macroeconomic Headwinds

Deere acknowledges facing substantial macroeconomic challenges this year, including an estimated $1.2 billion pre-tax cost burden from tariffs in 2026. The company's strategy to counter these pressures centers on technological innovation and strategic acquisitions designed to enhance customer efficiency.

A key initiative is the deepened focus on digital solutions. The recent integration of Bayer's "FieldView" data platform into Deere's own Operations Center is intended to streamline data-driven farm management. Furthermore, in mid-February, the company secured patents and assets related to tree-planting technology from Finland's Risutec Oy, a move that strengthens its technological foothold in the forestry sector.

The revised annual guidance and strategic investments suggest to many observers that Deere may have reached the cyclical trough. Management's actions express confidence in the underlying resilience of its business model as it prepares for a sector recovery.