Deere & Company expects fiscal 2026 net income of $4.75 billion to $5.00 billion, according to its August 20, 2026 update. That is a higher low end than the $4.5 billion to $5.0 billion range it gave in May, though the company still expects a steep decline in North American large-agriculture demand. Deere’s August release does not state analyst consensus, so it cannot by itself substantiate the earlier “below estimates” comparison.
What is Deere’s latest fiscal 2026 profit forecast?
Deere forecast fiscal 2026 net income of $4.75 billion to $5.00 billion in its August 20, 2026 third-quarter release. In its May 21, 2026 second-quarter release, the company had forecast $4.5 billion to $5.0 billion. The August update therefore raised the bottom of the range by $250 million and left the top unchanged.
The phrase “below estimates” refers to an earlier forecast comparison. Deere’s August release provides the company’s forecast, not the analyst-consensus figure needed to verify a numerical shortfall against expectations. The latest company outlook should therefore be read on its own terms rather than as a fresh miss against consensus.
How weak does Deere expect equipment demand to be?
Deere’s August outlook describes a pronounced slowdown in large agriculture, but not a uniform decline across every product line or region. These are company estimates for fiscal 2026 industry conditions, rather than independent measurements of equipment purchases.
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| Market | Deere’s fiscal 2026 outlook |
|---|---|
| U.S. and Canada, large agriculture | Industry sales down 15% to 20% from 2025, according to Deere’s August 20, 2026 outlook. |
| U.S. and Canada, small agriculture and turf | Flat to up 5% from 2025, according to Deere’s August 20, 2026 outlook. |
| South America, tractors and combines | Industry sales down 15% to 20% from 2025, according to Deere’s August 20, 2026 outlook. |
| Europe | Flat, according to Deere’s August 20, 2026 outlook. |
| Asia | Flat, according to Deere’s August 20, 2026 outlook. |
Deere’s August 2026 Form 10-Q points to elevated farm input costs, commodity-price volatility and continuing market uncertainty as factors weighing on expected U.S. and Canadian large-agriculture demand. Those pressures help explain why the company’s outlook is substantially weaker for large equipment than for small agriculture and turf.
What did Deere report in the third quarter?
For the quarter ended August 2, 2026, Deere’s worldwide net sales and revenues increased 5% year over year to $12.608 billion. Net income was $1.379 billion, compared with $1.289 billion in the same quarter a year earlier. The company’s overall growth masked sharply different results among its equipment segments.
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| Segment | Sales change year over year | Operating-profit change year over year |
|---|---|---|
| Production & Precision Agriculture | Down 6% | Down 9% |
| Small Agriculture & Turf | Up 12% | Up 28% |
| Construction & Forestry | Up 18% | Up 84% |
These are Deere’s reported third-quarter year-over-year changes from its August 20 release. They show why the large-agriculture downturn should not be treated as a description of every part of the company: stronger Small Agriculture & Turf and Construction & Forestry results offset some weakness in Production & Precision Agriculture.
Why did large-agriculture profit decline?
Production & Precision Agriculture recorded net sales of $3.998 billion, down from $4.273 billion a year earlier, and operating profit of $527 million, down from $580 million. Deere attributed lower sales primarily to lower shipment volumes, partly offset by favorable price realization and currency translation. Profit was pressured by lower shipment volumes, sales mix and higher production costs; pricing and currency effects provided partial offsets.
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Does Deere expect the farm-equipment downturn to bottom in 2026?
Deere chairman and CEO John C. May said on August 20, 2026, “As we look ahead, we continue to believe 2026 will mark the bottom of the current ag equipment cycle.” That is management’s expectation, not a confirmed turning point. Deere’s outlook remains forward-looking and may change as costs, commodity markets and customer demand evolve.
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