Deere faces headwinds in Q3 update and announces Reservoir R&D partnership

Deere & Co. final week posted Q3 2026 internet revenue of $1.379 billion, or $5.10 per share, outperforming market expectations regardless of headwinds in its Manufacturing and Precision Agriculture division—the first unit driving income from the corporate’s autonomous equipment, sensible focusing on programs, and precision applied sciences. 

Manufacturing and Precision Agriculture Q3 breakdown:

• Small Agriculture and Turf gross sales elevated for the quarter. Web gross sales had been up 12%, and revenue was up 28%. 
• Manufacturing and Precision Agriculture gross sales decreased for the quarter on account of decrease cargo volumes, partially offset by favorable value realization and international forex translation. Web gross sales had been down 6%, and revenue was down 9%.

The revised outlook signaled that the multi-year downturn in international farm equipment demand might lastly be reaching its flooring. By elevating its full-year internet revenue steerage to a variety of $4.75 billion to $5 billion, Deere is reinforcing its thesis that fiscal 2026 represents the trough of the present agricultural gear cycle.  

Crucially, as conventional gear order volumes take care of elevated enter prices and softer worldwide demand, the corporate is poised for a tech-enabled restoration as international alternative cycles resume. Deere mentioned it expects to learn from increasing adoption of high-margin autonomous capabilities, automated spraying programs, and linked fleet software program, that are offering an important structural buffer for working margins. 

Deere companions with Reservoir 

This week, Reservoir introduced a $10 million, three-year analysis and growth partnership with John Deere to speed up real-world growth and commercialization of rugged AI applied sciences for high-value crop agriculture. 

The partnership builds on a relationship that started when Reservoir was based in 2024 and displays Deere’s dedication to an innovation ecosystem that strikes sooner from prototype to grower influence. 

Reservoir hosted its first Ruggedize occasion this week in Salinas, Calif. The occasion introduced collectively engineers, founders, and technical groups constructing robotic and AI programs that should survive the realities of lively farmland. Deere is vital investor in Reservoir.

“John Deere is dedicated to serving to high-value crop growers do extra with much less, and that requires robust innovation constructed within the subject, not simply within the lab,” mentioned Jason Brantley, vp of manufacturing programs, small ag and turf, at John Deere.

“Actual-world validation is a key a part of Deere’s mission and helps guarantee new options are addressing actual challenges farmers are dealing with,” he added. “Automation on the farm is addressing the instant labor and effectivity wants of the trade, and Reservoir can be serving to discover what improvements come subsequent throughout information, connectivity and different rising agtech options.” 

Reservoir mentioned the partnership will assist broaden entry to its on-farm technical neighborhood by subsidizing startup participation and reducing limitations for founders coming into the ecosystem. It’s going to additionally broaden alternatives for innovation in rural communities by connecting entrepreneurs and deep-tech engineers extra immediately with growers, farm operations, and trade companions throughout California, Arizona, and different key agricultural areas.

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