This Tractor Maker Is The S&P 500's Top Gainer After Sales Touch $11B Despite Sluggish Farming Economy

• Deere & Co. delivered fiscal third-quarter earnings per share of $5.10 on agricultural equipment sales of roughly $7.4 billion, exceeding Wall Street projections. 
• The company raised its fiscal 2026 net income forecast to a range between $4.75 billion and $5 billion. 
• Broader agricultural machinery demand remains under pressure, with U.S. tractor and combine sales continuing a downward trend through mid-2026. 

Deere & Co. (DE) shares jumped 9% on Thursday to become the S&P 500’s top gainer after the farm equipment maker posted stronger-than-expected Q3 results despite a slowdown in overall agricultural equipment sales.

The Moline, Illinois-based machinery giant generated $5.10 in earnings per share on agricultural equipment revenue of around $7.4 billion. Wall Street analysts had estimated profit of $4.69 per share on $7.3 billion in agricultural sales. The performance represented modest growth compared with the same period a year earlier, when Deere recorded $4.75 per share in earnings on $7.3 billion in revenue. 

While the latest data from the Association of Equipment Manufacturers (AEM) showed farm equipment sales fell in July, Deere raised its 2026 profit forecasts. The company now expects net income of $4.75 billion to $5 billion, compared to the $4.5 billion to $5 billion guidance provided in May. Implied net income for the fiscal fourth quarter is modeled between $900 million and $1.2 billion. 

However, the sluggish farm economy seems to be a prolonged problem. Deere now foresees large-equipment industry sales dropping 15% to 20% in both North America and South America, while European sales are expected to stay flat. 

Broader US Agri Equipment Market Faces Slump

While Deere managed to clear Wall Street’s lowered expectations, industry-wide data indicates that equipment demand across North America remains constrained by economic pressure on agricultural producers.

Recent figures released by the Association of Equipment Manufacturers (AEM) show that total U.S. farm tractor purchases declined 10.9% year-over-year in July 2026, while combine sales dropped 5.3%. Year-to-date U.S. tractor unit sales stood at 105,185 through July, representing a 13.1% contraction compared to the same timeframe in 2025.

The sharpest pullbacks occurred in high-horsepower machinery, which is essential for commercial row-crop farming. U.S. sales of four-wheel-drive tractors fell 38.7% year over year in July, suggesting large-scale agricultural operators are extending equipment maintenance lifecycles and delaying major capital expenditure projects.

Chief Executive John May said Deere still believes 2026 will mark the bottom of the current agriculture equipment cycle.

“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,” he said.

DE Stock: Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘high’ message volumes. 

DE stock has gained 33% year-to-date. 

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