Deere & Company Reports Growth from Construction and Turf Segments Despite Farm Equipment Slump
On August 20, Deere & Company (NYSE:DE) reported a 7% year-over-year increase in net income to $1.379 billion for its third quarter of fiscal 2026, driven by strong performance from non-agricultural segments despite declining sales in its core farm equipment division. The Construction and Forestry segment saw an 18% rise in net sales to $3.618 billion with a significant margin improvement due to pricing power and robust demand linked to infrastructure projects and data center construction. The Small Ag and Turf segment also grew by 12%, supported by strong beef prices, improved channel health, and increased technology adoption. However, Deere's largest segment—Production and Precision Agriculture—experienced a 6% sales decline due to lower shipment volumes in South America and Europe caused by high input costs and interest rates. The company raised its full-year net income guidance but faces ongoing cost pressures from tariffs.
Tickers: $DE
Topics: agriculture construction equipment operating margins sales growth turf machinery