Deere & Company shares surged 4.5% in premarket trading after the agricultural equipment manufacturer reported first-quarter earnings that significantly exceeded analyst expectations. The company posted net income of $656 million, or $2.42 per share, beating estimates of $2.02 per share, while revenue jumped 13% year-over-year to $9.61 billion.

Despite a 25% decline in net income compared to the same quarter last year, Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion. The strong performance came from robust growth in the Small Agriculture & Turf segment, where sales increased 24% to $2.17 billion and operating profit jumped 58% to $196 million. The Construction & Forestry segment also performed well, with sales up 34% to $2.67 billion and operating profit more than doubling to $137 million.

The company expects Small Agriculture & Turf sales to increase approximately 15% in fiscal 2026, while Construction & Forestry sales are also projected to rise about 15%. However, Production & Precision Agriculture sales are forecast to decline 5% to 10% due to continued weakness in the large agriculture market. CEO John May stated that 2026 represents the bottom of the current cycle, providing a strong foundation for accelerated growth