:max_bytes(150000):strip_icc()/GettyImages-2254436181-44c6b7ef379a40bba8ffcc8cb12cf48e.jpg "This Farm and Construction Machinery Maker’s Stock Keeps Hitting Record Highs")
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Key Takeaways
- Deere shares jumped to a fresh high Thursday after the tractor maker posted earnings that topped analysts’ estimates.
- Executives said its results got a boost from infrastructure spending and investments in building AI data centers.
Deere’s stock is building on its winning streak.
Shares of Deere & Co. (DE) jumped nearly 12% to a fresh high Thursday, extending their recent record-setting rally, after the farm and construction equipment maker posted earnings that exceeded expectations.
Deere reported earnings per share of $2.42 on revenue that rose 13% year-over-year to $9.61 billion in its fiscal first quarter. Both figures topped analysts’ projections compiled by Visible Alpha.
Deere’s Manager of Investor Communications Chris Seibert said in Thursday’s earnings call that infrastructure spending by the Trump administration and data center construction projects helped bolster its results, according to a transcript provided by AlphaSense.
Why This Matters to Investors
Deere shares have rallied this year amid optimism about a rebound in the company’s construction and small agriculture businesses, along with a boost from AI infrastructure spending.
“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 in a statement.
Those positive demand trends have the company expecting this year could be “the bottom of the current cycle” May said, leaving Deere poised for stronger sales growth in 2027 and beyond.
Looking ahead, Deere said it expects net income of $4.5 billion and $5 billion for the full year, up from the previous range of $4 billion to $4.75 billion, and above the $4.43 billion analysts were looking for.
The company said sales from its Production & Precision Agriculture segment are seen falling 5% to 10%, while small agriculture and construction sales are projected to rise about 15%.
With Thursday’s move, Deere shares have gained more than 40% since the start of the year.
