3Q 2026 Cost Report: Prices for Used Equipment Show Stability, While New Machines Sees Jump in Sales
EquipmentWatch reports an 18.22% drop in construction equipment auction values in August 2026 vs. 2024, with used equipment prices stabilizing. Caterpillar (CAT) and John Deere (DE) report strong sales of new machines, with CAT posting $20.5B in Q2 sales, up 24% YoY, and DE's construction division seeing 18% YoY growth in Q3.
How this was made
The 30-second read
Why it matters
Both companies posted solid growth, reinforcing bullish sentiment in the heavy‑equipment sector, though the information is not new.
Market read
Earnings beats and upbeat guidance may provide short‑term upside for the stocks, but the news is already priced in.
What to watch
Potential supply‑chain constraints and higher financing costs could temper demand.
Background
The article summarizes recent earnings releases for Caterpillar and John Deere, noting strong sales and optimistic forecasts.
Ticker impact
Caterpillar reported its largest-ever Q2 sales volume of $20.5 billion, up 24% YoY, marking a sixth straight quarter of growth.
Potential modest upside on earnings beat.
Revenue beat and growth trend suggest continued demand, but data is already public.
John Deere posted $3.6 billion sales in its construction & forestry division, up 18% YoY, and forecast 20% growth for FY2026.
Likely modest rally if guidance is above consensus.
Guidance reinforces growth narrative; however, the numbers were released earlier.
Market effects
Highlights strength in construction equipment sector amid data‑center demand.
U.S. equipment manufacturers may see continued demand, supporting related stocks.
Signals broader industrial recovery but limited global impact.
Counterpoint
Growth may be unsustainable if data‑center projects slow or tariffs rise.
Key entities
- CompanyCaterpillar Inc.
Heavy equipment manufacturer reporting Q2 results.
- CompanyDeere & Company
Agricultural and construction equipment maker reporting Q3 division results.
