Deere's Construction Boom Offsets Ag Slump as AI Data Centers Fuel Demand
DE sits 45% above its 52-week low of $433.
Summary
Deere's Q3 beat on EPS ($5.10 vs $4.70 est.) and revenue ($12.6B vs $10.7B est.), but the real story is the divergence between segments. Construction & Forestry sales jumped 18% with operating profit up 84%, driven by infrastructure spending and AI data center buildouts. Small Ag & Turf also grew 12% with profit up 28%. Meanwhile, Production & Precision Ag fell 6% with profit down 9%. The company raised FY26 net income guidance to $4.75–$5.0B and expects Construction & Forestry sales to grow 20% while large ag volumes decline 15–20%. Deere also completed its $439M acquisition of Tenna LLC, expanding construction tech. CEO May reiterated that 2026 marks the bottom of the ag cycle. This adds crucial segment-level color and the AI data center angle that earlier earnings headlines lacked.
At the time of this announcement, DE was trading at $626.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $169B. The 52-week trading range was $433.00 to $674.19. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.