Feb 19 (Reuters) – Farm-machinery maker Deere & Co raised its full-year net income forecast on Thursday benefiting from earlier cost-cutting measures that cushioned the impact of soft equipment demand.
The company expects net income for 2026 to range between $4.5 billion and $5 billion, compared with its prior forecast of $4 billion to $4.75 billion.
Shares of the global farm economy bellwether, rose 2% in premarket trading.
“While the global large agriculture industry continues to experience challenges, we’re encouraged by the ongoing recovery in demand within both the construction and small agriculture segments,” CEO John May said.
“These positive developments reinforce our belief that 2026 represents the bottom of the current cycle.”
The world’s largest farm-equipment maker previously scaled back factory production to counter weak demand for new machinery as lower crop prices and higher input costs push farmers to postpone big-ticket purchases.
The company is also working closely with dealers across its network to reduce inventory levels.
U.S. farmers are heading into another season of weak crop prices and elevated costs, forcing tough decisions about how, or if, to continue operating as ample grain supplies pressure markets.Deere’s first-quarter revenue rose 13% to $9.61 billion, from $8.50 billion a year ago.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Pooja Desai)
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