Deere & Company has significantly adjusted its fiscal 2026 outlook, signaling a potential bottoming of the agricultural equipment cycle. The machinery giant raised its full-year net income forecast to a range of **$4.5 billion to $5.0 billion**, up from its previous guidance of **$4.0 billion to $4.75 billion**. The updated forecast follows a strong first-quarter performance where the company reported net income of **$656 million**, or **$2.42 per share**. While this represents a year-over-year decline from **$869 million**, it comfortably surpassed analyst expectations of approximately **$2.05 per share**. Total revenue for the quarter rose **13%** to **$9.61 billion**, driven by a sharp divergence in sector performance. The company is leaning on aggressive cost-cutting and a rebound in specific divisions to protect its margins against broader economic headwinds. Construction and Forestry operations emerged as a primary growth engine, with sales surging **34%** to **$2.67 billion**. Operating profit for this segment more than doubled, reflecting robust infrastructure demand and improved production efficiencies. Small Agriculture and Turf units also showed resilience, with sales increasing **24%** to **$2.17 billion**. Operating profit in this category jumped **58%**, supported by higher shipment volumes and strategic pricing adjustments. In contrast, the Large Agriculture sector remains under pressure. The Production and Precision Agriculture segment saw operating profits fall significantly due to a combination of unfavorable sales mix and rising production costs. Global factors continue to impact the bottom line. The company reported that sweeping tariffs have increased the cost of raw materials, weighing on overall operating margins. Additionally, the U.S. Department of Agriculture recently forecast that net farm income could fall slightly in 2026 to **$153.4 billion**, suggesting continued caution among large-scale buyers. Despite these challenges, market sentiment has turned sharply positive. Following the earnings release, Deere shares soared nearly **10%** in intraday trading, reaching an all-time high of approximately **$662**. The stock has rallied roughly **40%** since the start of the year. The company's leadership remains optimistic that the industry is nearing the end of its current downturn. Strengthened order books and a revival in soybean exports have bolstered confidence that 2026 will serve as a foundation for accelerated growth in the coming years.