Deere & Co. shares climbed 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,” Chief Executive Officer John May said in the company earnings statement Thursday.
“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 9.6%, the most intraday since last April, to an all-time high. The stock has rallied about 40% this year 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.
The increased optimism comes as Chicago soybean prices have been rising amid a revival of US 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 US 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.
The company said it would bring back 27 additional employees to its Dubuque Works facility in March to support construction and forestry operations. Deere said previous callbacks announced since the start of the year amount to about 275 employees returning to work across multiple factories in Iowa as customer demand for equipment continues to rise.
© 2026 Bloomberg L.P.