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Deere & Company (DE) is set to report its third-quarter results Thursday before the market opens, and there's a lot riding on the numbers. The farming equipment giant has been a reliable beat machine, but with the agricultural sector under pressure, the question is whether that streak can continue.
Here's what to expect, what analysts are saying, and what to keep an eye on.
Analysts are looking for revenue of $10.73 billion, a drop from the $12.02 billion reported in the same quarter last year. Earnings per share are expected to come in at $4.70, slightly below the $4.75 from a year ago.
Deere has beaten revenue estimates for 27 consecutive quarters and earnings estimates for 15 straight quarters. That's an impressive run, but with revenue expected to decline, the pressure is on.
Recent analyst actions paint a mixed picture. JPMorgan maintained a Neutral rating but cut its price target from $590 to $570. Evercore ISI kept an In-Line rating, trimming its target from $641 to $632. DA Davidson remains bullish with a Buy rating and a $685 price target, while Citigroup raised its target from $575 to $610, keeping a Neutral stance.
Deere is living in two worlds right now. On one hand, its farming equipment business is feeling the pinch from an agricultural sector battered by rising fuel and fertilizer costs. On the other, its construction equipment segment is booming, thanks to the surge in data center construction.
That divergence was clear in the second quarter. Overall revenue was up 5% year-over-year, but the breakdown tells the story:
The construction segment was the star, and it could be again. Caterpillar (CAT) has already been a big winner in the AI data center trade, with shares up 35% year-to-date. Investors will be watching to see if Deere can grab a piece of that action.
But don't expect the construction boom to fully offset the farm slump. Analysts are projecting an overall revenue decline for the third quarter, which means the long-running beat streak is on the line.
Beyond the headline numbers, keep an ear out for comments on tariffs and their impact on farming. Deere has been dealing with tariff-related costs, and any talk of refunds or government relief could move the stock. Also, watch for any updates on potential farm relief bills, which could shape future guidance.
Deere shares are flat at $588.65 on Wednesday, sitting within a 52-week range of $433.00 to $674.19. The stock is up 26.4% year-to-date in 2026, so it's had a solid run.
Will the construction segment save the day, or will farming woes finally break the streak? Tune in Thursday morning to find out.
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