Deere & Co. (NYSE:DE) delivered a stronger-than-expected fiscal first-quarter performance and modestly lifted its 2026 outlook on Thursday.

"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," said John May, chairman and CEO of John Deere.

"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."

Analyst View

RBC Capital Markets analyst Sabahat Khan said Deere reported fiscal first-quarter results that topped expectations and modestly raised its fiscal 2026 outlook, reinforcing the view that the agriculture equipment cycle may be nearing a bottom.

Following the results, RBC raised its price forecast on Deere to $736 from $541 and reiterated its Outperform rating, citing improving earnings visibility and increased confidence in the company's longer-term growth trajectory.

Equipment Operations showed momentum, with net sales rising 17.5% year over year as higher shipment volumes and favorable foreign exchange more than offset muted pricing.

By segment, Production and Precision Ag increased 3.1% year over year, Small ...