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Deere Stock Jumps 13% After Q3 Earnings Smash Estimates
Why is Deere stock up today?
Deere (DE) stock jumped 13% on Thursday after Q3 2026 revenue of $12.6B beat estimates by $1.8B, driven by an 84% construction profit surge as AI data center building lifted equipment demand.
Key numbers
| Q3 Revenue | $12.61B+5% YoY; beat estimates by $1.8B |
|---|---|
| EPS (diluted) | $5.10Beat $4.71 estimate by $0.39 [per 2] |
| C&F Operating Profit | $436M+84% YoY |
| C&F Operating Margin | 12.1%vs 7.7% year-ago quarter |
| FY2026 Net Income Guidance | $4.75B–$5.0BRaised from $4.5B floor |
| Net Income (Q3) | $1.38B+7% YoY |
What happened
Deere (DE) stock jumped 13% on Thursday after Q3 2026 revenue of $12.6B beat estimates by $1.8B, driven by an 84% construction profit surge as AI data center building lifted equipment demand. The Construction and Forestry division — which makes excavators, bulldozers, and logging equipment — saw operating profit jump to $436M from roughly $237M a year earlier, with its margin widening from 7.7% to 12.1%. Large tractor sales fell 6% as cautious farmers weighed on results, while smaller farm equipment rose 12%. Deere raised its full-year profit forecast to $4.75B–$5.0B, saying construction order books are full through 2026 with backlogs extending into fiscal 2027.
Why it matters
Deere's construction results reveal that the AI data center building rush — which requires fleets of bulldozers, excavators, and earthmovers — is now a powerful new growth driver for heavy-equipment makers that long depended almost entirely on farm spending cycles. This matters because it means Deere is less exposed to weak grain prices than before; a bad harvest year no longer automatically spells a bad year for the company. Construction backlogs running into 2027 suggest the demand shift is structural, not a one-quarter blip.
Who this affects
- MarketbullishMedium impact
- Equipment stocks rise on AI infrastructure demand surprise.
- CompanybullishHigh impact
- Deere margins and guidance improve sharply on construction boom.
- CompetitorsmixedMedium impact
- CAT and CNH face tougher construction benchmarks next quarter.
- IndustrybullishMedium impact
- AI data centers emerge as a major new demand driver.
Deere vs Caterpillar, CNH Industrial, AGCO
| DeereDE:NYSE | $184B | +33% | 32.7x |
|---|---|---|---|
| CaterpillarCAT:NYSE | $368B | — | 27.8x |
| CNH IndustrialCNH:NYSE | $22B | +49% | 12.8x |
| AGCOAGCO:NYSE | $7B | +16% | — |
As of 2026-09-18
How we got here
AI data center construction boom lifts US earthmoving equipment orders.
Deere Q3 FY2026 released; C&F profit surges 84% to $436M.
Earnings call: management cites AI data centers and energy projects as key demand drivers.
Full-year net income guidance raised to $4.75B–$5.0B; order books full for 2026.
What to watch
- Q4 FY2026 earnings: will AI-driven construction momentum carry through year-end?Q4 2026
- Farm equipment recovery: CFO says 2026 is the ag cycle trough; watch large tractor orders.Q1 2027
- Tariff exposure: $1.1B full-year impact; any policy shift could swing margins.Q4 2026
Educational content only. Not investment advice.
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