This Farm and Construction Machinery Maker's Stock Keeps Hitting Record Highs

Core Insights - Deere & Co. shares have surged over 40% since the beginning of the year, reaching a new high after reporting earnings that exceeded analysts' expectations [1][1][1] Financial Performance - Deere reported earnings per share of $2.42 and revenue of $9.61 billion, reflecting a 13% year-over-year increase [1][1][1] - The company expects net income for the full year to be between $4.5 billion and $5 billion, an increase from the previous range of $4 billion to $4.75 billion [1][1][1] Market Drivers - The positive results were attributed to increased infrastructure spending and investments in AI data centers [1][1][1] - CEO John May noted a recovery in demand within the construction and small agriculture segments, despite ongoing challenges in the global large agriculture industry [1][1][1] Future Outlook - Deere anticipates that 2023 could mark the bottom of the current cycle, with expectations for stronger sales growth in 2027 and beyond [1][1][1] - Sales from the Production & Precision Agriculture segment are projected to decline by 5% to 10%, while small agriculture and construction sales are expected to rise by approximately 15% [1][1][1]