Photo by Yorgos Ntrahas on Unsplash
 

Deere & Company (DE) delivered a strong performance in the fourth quarter of 2025, exceeding market expectations for both earnings per share and revenue. The company also provided guidance for fiscal year 2026, anticipating challenges in the large agriculture sector but expecting growth in other areas.
 

Deere’s Q4 Profit Drops 14% Year Over Year Even as Sales Rise 11%

Deere & Company (DE) has reported impressive results for the fourth quarter of 2025, with net income reaching $1.065 billion, translating to an earnings per share (EPS) of $3.93. This performance significantly surpassed the anticipated EPS of $3.85. Moreover, the company achieved a revenue of $12.39 billion, exceeding the expected $9.82 billion. These results highlight the company’s ability to navigate challenging market conditions effectively.

Compared to the same period in 2024, Deere experienced a decline in net income from $1.245 billion, or $4.55 per share. Despite this year-over-year decrease, the company’s fourth-quarter performance was bolstered by an 11% increase in worldwide net sales and revenues, reaching $12.394 billion. This growth was driven by higher shipment volumes and favorable price realizations across several segments.

The Production & Precision Agriculture segment saw a 10% increase in net sales, despite facing higher production costs and tariffs. Meanwhile, the Construction & Forestry division experienced a 27% rise in sales, contributing to a 6% increase in operating profit. These gains were partially offset by a decline in operating margin due to increased production costs and tariffs.
 

2026 Outlook Shows Pressure in Large Ag but Growth in Other Segments

Looking forward to fiscal year 2026, Deere & Company has provided guidance reflecting both challenges and opportunities in its various sectors. The company projects net income to be between $4.00 billion and $4.75 billion. This range indicates a cautious outlook, acknowledging ongoing margin pressures from tariffs and challenges in the large agriculture sector.

Despite these challenges, Deere anticipates growth in the small agriculture and turf, as well as construction and forestry segments. The company expects net sales in these areas to increase by approximately 10%, supported by favorable currency translation and price realization. The Financial Services division is projected to achieve a net income of around $830 million.

John May, chairman and CEO of Deere, expressed confidence in the company’s strategic initiatives, emphasizing its commitment to inventory management and cost control. As the large agriculture sector faces a downturn, Deere plans to leverage its strengths in other segments to capitalize on emerging opportunities as market conditions begin to recover.

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