Deere Narrows Profit Outlook as Farm Recovery Seen in 2027

Deere Narrows Profit Outlook as Farm Recovery Seen in 2027

Deere Narrows Profit Outlook as Farm Recovery Seen in 2027

A Deere & Co. tractor for sale in Shelbyville, Kentucky.

Michael Hirtzer

Updated Thu, August 20, 2026 at 3:24 PM GMT+3 2 min read

(Bloomberg) -- Deere & Co. (DE) narrowed its annual profit outlook as a stabilizing agriculture sector points to a more pronounced rebound next year for farm machinery.

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The builder of iconic green and yellow tractors estimated net income for the fiscal year between $4.75 billion and $5 billion, compared with its previous outlook for $4.5 billion to $5 billion.

"As we look ahead, we continue to believe 2026 will mark the bottom of the current ag equipment cycle," Deere Chief Executive Officer John May said in a statement Thursday. "Across our business, early order program trends, improving used-equipment inventories, and increasing customer adoption of our advanced technologies give us confidence that Deere is well positioned for long-term value creation."

Sales of machines to plant, treat and harvest fields have been under pressure for years with farmers lacking spending power from relatively low crop prices and higher costs for fertilizer and fuel. Still, Deere and others have pulled back production to rein in inventories — efforts that will eventually prompt a rise in demand.

Grain prices have been climbing, with wheat recently hitting the highest levels since 2024 as heat waves and drought crimp yields and escalating attacks between Russia and Ukraine raise concerns about exports leaving the Black Sea. Should prices keep rising, farmers may have more to spend.

(DE )

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Deere's outlook comes after mixed signals from rival machinery makers. CNH Industrial NV earlier this month raised its annual outlook, saying the sector is primed for a rebound in 2027 as the current fleet ages and prompts growers to upgrade. AGCO Corp., however, trimmed its estimates, saying skyrocketing costs for inputs like fuel and fertilizer continue to pressure the farm economy.

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