MOLINE, IL – Deere & Company says 2026 could mark the bottom of the current agricultural equipment cycle, offering an early signal that machinery demand may begin stabilizing after a prolonged downturn. The company pointed to improving used-equipment inventories and early-order trends supporting that outlook.
Deere reported third-quarter net income of about $1.4 billion, up from $1.3 billion a year earlier, while quarterly revenue increased about 5%. The company also raised its fiscal-year earnings outlook to $4.75 billion to $5 billion.
For producers, the key question is whether improving dealer inventories and order books eventually translate into firmer machinery markets. Deere also cited increasing adoption of advanced technology as a source of longer-term confidence.
The outlook does not mean farmers have broadly returned to aggressive equipment buying. Commodity prices, farm income, interest rates and input costs remain important constraints on replacement and expansion decisions.
If Deere’s forecast proves correct, dealers and manufacturers could enter 2027 with healthier inventories and a more balanced equipment market.
Farm-Level Takeaway: Deere sees signs the machinery downturn may be nearing its low point, but producer purchasing power will determine how quickly demand improves.