Aug 20 (Reuters) – Deere, the world’s largest farm equipment manufacturer, raised its full-year net income forecast on Thursday, after robust demand for small tractors and construction equipment helped the company post its first rise in quarterly profit in nearly three years.
Rising U.S. government and private spending on infrastructure alongside the vast AI-fueled buildout of data centers has lifted demand for construction equipment, with Deere’s construction and forestry segment emerging as its fastest-growing business in the quarter.
The trend has helped the company weather a prolonged lull in demand for its large tractors and combine harvesters amid rising costs and falling agricultural yields.
Deere reported a profit of $5.10 per share for the quarter ended August 2, up from $4.75 per share a year earlier. Its quarterly revenue rose 6% to $11 billion.
The John Deere tractor manufacturer now expects 2026 net income of $4.75 billion to $5 billion, compared with its earlier projection of $4.5 billion to $5 billion.
Shares of the company were up 2% in pre-market trading.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Jonathan Ananda)
