Deere Set to Report Q3 Earnings: Here's What to Expect From the Stock

Deere & Company DE is scheduled to report third-quarter fiscal 2026 results on Aug. 20 before the opening bell.

The Zacks Consensus Estimate for Deere’s earnings has moved north over the past 60 days to $4.79 per share. The consensus mark implies a 0.8% rise from the year-ago actual. The consensus estimate for revenues is pegged at $10.78 billion, indicating a 4.1% year-over-year increase.

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DE’s Earnings Surprise History

Deere’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 10.2%.

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What the Zacks Model Predicts for Deere

Our model does not predict an earnings beat for DE this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.

Earnings ESP: The Earnings ESP for Deere is -1.14%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: Deere currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped DE’s Q3 Performance

Deere has been facing challenges due to weak farmer spending amid low commodity prices. In the wake of challenging conditions in the global agricultural and construction sectors, DE has been aligning its production with demand levels.
This is likely to have weighed on the company’s fiscal third-quarter performance. High production expenses are also expected to have impacted the company’s margin in the quarter.

Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal second quarter.

Projections for Deere’s Segments in Q3

The Zacks Consensus Estimate for the Production & Precision Agriculture segment’s revenues is pegged at $3.94 billion for the fiscal third quarter, suggesting a year-over-year decrease of 7.9%. Gains from price realization are likely to have been offset by escalated production expenses and lower shipment volumes. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $491 million, indicating a 15.3% decrease from the prior-year quarter’s reported figure.

The consensus estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3.39 billion for the fiscal third quarter, implying a 12% increase from the prior-year quarter’s actual. The segment’s operating profit is estimated at $495 million, suggesting 2% year-over-year growth.

The Construction & Forestry segment’s sales are pegged at $3.57 billion for the fiscal third quarter, implying a 16.9% rise from the prior-year quarter’s reported number. The segment’s operating profit is pegged at $424 million, whereas it reported $237 million in the prior year.

The estimate for the Financial Services segment’s revenues is pegged at $1.61 billion for the fiscal third quarter, indicating a 4.1% rise from the year-ago quarter’s actual. The projection for the segment’s operating profit is $271 million. The segment reported operating profit of $266 million in the prior-year quarter.

DE Stock’s Price Performance

Shares of the company have gained 23.7% in the past year compared with the industry’s 19.5% growth.

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A Look at Deere’s Peer Performances

Lindsay Corporation LNN reported third-quarter fiscal 2026 earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line declined 14% year over year.

Lindsay’s sales totaled $160.8 million, down 5% year over year. The top line missed the Zacks Consensus Estimate of $169 million by 5.15%. Irrigation softness outweighed infrastructure growth. The quarter reflected persistent demand challenges in North America and Brazil.

CNH Industrial N.V. CNH reported second-quarter 2026 adjusted EPS of 13 cents, which declined from 17 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 11 cents.

In the second quarter, CNH Industrial’s net sales grew 2% from the year-ago level to $4.80 billion and topped the Zacks Consensus Estimate of $4.76 billion.

AGCO Corp. AGCO delivered adjusted earnings per share of $1.43 in second-quarter 2026, missing the Zacks Consensus Estimate of $1.54 by 7.14%. AGCO Corp posted adjusted EPS of $1.35 in the year-ago quarter. 

Net sales declined 1% year over year to $2.61 billion and missed the consensus estimate of $2.73 billion. Excluding the favorable currency-translation impacts of 2.7%, net sales fell 3.7% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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