(David Paul Morris/Bloomberg News)
February 19, 2026 11:35 AM, EST
Deere & Co. shares jumped as the world’s largest farm machinery maker boosted its annual profit outlook, anticipating a long-awaited upturn in the agriculture economy.
“While the global large agriculture industry continues to experience challenges, we’re encouraged by the ongoing recovery in demand within both the construction and small agriculture segments,” CEO John May said in the company earnings statement Feb. 19.
“These positive developments reinforce our belief that 2026 represents the bottom of the current cycle and provides us with a strong foundation for accelerated growth going forward,” May said.
Deere shares rose as much as 6.7% in premarket trading. The stock has rallied 27% this year, reaching a record last week, on increased hopes for a recovery.
Deere estimated net income between $4.5 billion and $5 billion. That’s above Deere’s initial outlook in November of between $4 billion and $4.75 billion, and compares to the Bloomberg estimate for $4.45 billion. First-quarter adjusted earnings of $2.42 a share, while down from a year earlier, handily beat the average analyst estimate compiled by Bloomberg of $2.05 a share.
The results were “driven by better-than expected sales and margins across all units on higher shipments as order books strengthened,” Bloomberg Intelligence analysts wrote in a report.
Deere & Company’s Q1 2026 Earnings: https://t.co/9etdS4BfXe pic.twitter.com/Zp37WxzZqK
— John Deere USA (@JohnDeere) February 19, 2026
The increased optimism comes as Chicago soybean prices have been rising amid a revival of U.S. exports to China. President Donald Trump has said China could buy more than an initial target for this season of 12 million tons, raising hopes for further demand.
Meanwhile, greater clarity expected soon around U.S. biofuels policy in 2026 could provide another tailwind for Deere, with the industry expecting higher blending targets for renewable fuel to boost demand for feedstocks like corn and soybeans.
Still, Deere rival CNH Industrial NV earlier this week took a more cautious stance, saying it will likely be 2027 before machinery sales start climbing again, as growers remain squeezed by low crop prices and relatively high costs for seeds, fertilizer and machinery.
Sentiment among growers has plummeted while some industry leaders have criticized Trump’s policies as damaging to the farm economy, even as the administration is rolling out $12 billion in aid.
For Deere, its largest segment of production and precision agriculture — which caters to the world’s biggest farmers — remains under pressure as the company reaffirmed expectations for net sales declines of 5% to 10% this year. The company increased its outlook for small agriculture and turf as well as construction and forestry.
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Deere recently said it would bring back nearly 100 employees that were previously let go at two construction and forestry production plants in Iowa, and said it would shift construction of excavators from Japan to a new $70 million facility in North Carolina.
“As demand increases, these callbacks help ensure we have skilled teams in place to support production across our construction and forestry operations,” Mark Dickson, vice president of construction and forestry manufacturing operations, said in a statement last month.
