Deere Q1 Earnings Lift Guidance After Construction Surge

Deere & Company said on Feb. 19, 2026, that Deere Q1 earnings beat estimates as its construction business more than doubled operating profit, prompting a raise to full-year net-income guidance and framing 2026 as the cyclical bottom for large agriculture.

Quarter Results and Segment Performance

For the quarter ended Feb. 1, 2026, Deere reported net income of $656 million and diluted earnings per share of $2.42, exceeding the consensus estimate of $1.92. Net sales rose 13.0% year-over-year to $9.6 billion, with equipment net sales reaching $8.0 billion.

Construction and Forestry sales climbed 34.0% to $2.7 billion, while operating profit more than doubled, rising 111.0% to $137 million. The gain reflected higher shipment volumes, a favorable sales mix, and production efficiencies, partially offset by tariffs.

Small Agriculture and Turf sales increased 24.0% to $2.2 billion, and operating profit rose 58.0% to $196 million, driven by higher shipments, improved sales mix, and price realization, despite tariff headwinds.

Production and Precision Agriculture, representing large agriculture, saw sales edge up 3.0% to $3.2 billion. However, operating profit fell 59.0% to $139 million due to tariffs, an unfavorable sales mix, and elevated warranty expenses.

Raised Full-Year Guidance

Deere raised its FY2026 net-income guidance to a range of $4.5 billion to $5.0 billion, up from the prior range of $4.0 billion to $4.75 billion. The company said this increase reflects confidence that 2026 marks the bottom of the current cycle.

CEO John May said, "These positive developments reinforce our belief that 2026 represents the bottom of the current cycle."

Management highlighted sustained research and development investment and new product launches as supporting the outlook. The forecast assumes continued recovery in construction and small-agriculture demand, while large agriculture will remain challenged through 2026. Tariff impacts are embedded in the guidance.