Deere Q3 income beats expectations
Deere & Co. Reported Q3 2026 net income of $1.379 billion, outperforming expectations, but its Production and Precision Agriculture division saw sales and
Deere & Co. Posted Q3 2026 net income of $1.379 billion, or $5.10 per share, last week. This performance beat market expectations, according to the company's update reported by The Robot Report.
Despite this overall result, the company's Production and Precision Agriculture division faced headwinds. This unit drives revenue from autonomous machinery and precision technologies. Deere has raised its full-year net income guidance to a range of $4.75 billion to $5 billion, reinforcing its view that fiscal 2026 represents the trough of the current agricultural equipment cycle.
Division Performance
The company provided a breakdown of its Q3 performance across key divisions. The figures show a mixed picture for the quarter.
| Division | Sales Trend | Net Sales Change | Profit Change |
|---|---|---|---|
| Small Agriculture and Turf | Increased | Up 12% | Up 28% |
| Production and Precision Agriculture | Decreased | Down 6% | Down 9% |
Deere stated that the decrease in the Production and Precision Agriculture division resulted from lower shipment volumes. This was partially offset by favorable price realization and foreign currency translation. The company is now poised for what it calls a tech-enabled recovery as global replacement cycles resume. It expects to benefit from expanding adoption of high-margin autonomous capabilities, automated spraying systems, and connected fleet software.
Reservoir R&D Partnership
Separately, Reservoir announced a $10 million, three-year research and development partnership with John Deere this week. The goal is to accelerate real-world development and commercialization of rugged AI technologies for high-value crop agriculture.
The partnership builds on a relationship that began when Reservoir was founded in 2024. Deere is a key investor in Reservoir. Jason Brantley, vice president of production systems, small ag and turf at John Deere, commented on the collaboration. "John Deere is committed to helping high-value crop growers do more with less, and that requires strong innovation built in the field, not just in the lab," Brantley said.
He added that real-world validation is a key part of Deere's mission. This helps ensure new solutions address real challenges farmers face. Brantley noted that automation addresses immediate labor and efficiency needs. Reservoir is also helping explore what innovations come next across data, connectivity, and other emerging agtech solutions.
Reservoir hosted its first Ruggedize event this week in Salinas, Calif. The event brought together engineers and technical teams building robotic and AI systems for active farmland. Reservoir stated the partnership will help broaden access to its on-farm technical community. It will subsidize startup participation and lower barriers for founders entering the ecosystem. The collaboration will also expand innovation opportunities in rural communities by connecting entrepreneurs more directly with growers and industry partners across California, Arizona, and other key agricultural regions.
