Deere & Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.20%.
Did DE Beat Earnings? Q2 2025 Results
Deere & Company delivered a standout second quarter for fiscal 2025, posting earnings and revenue that cleared Wall Street's bar by a wide margin even as the broader agricultural equipment cycle continued to grind lower. The company earned $6.64 per diluted share, well above the $5.64 consensus estimate, representing a 17.76% beat, while revenue of $12.76 billion topped expectations by 18.25% despite falling 14.9% year-over-year as weaker shipment volumes weighed across all three equipment segments. The outperformance was driven largely by disciplined cost management, with the Small Agriculture and Turf segment standing out for actually expanding its operating margin to 19.2% from 17.9% a year earlier. Looking ahead, Deere widened its full-year net income guidance to a range of $4.75 billion to $5.50 billion, reflecting the uncertain trade environment, including an anticipated $500 million tariff impact for fiscal 2025. The company also announced a $20 billion, decade-long U.S. manufacturing investment commitment, signaling confidence in its long-term domestic footprint despite near-term market headwinds.
- Lower shipment volumes across all equipment segments drove revenue declines
- Production cost reductions partially offset tariff impacts
- Price realization positive in Production & Precision Ag and Small Ag & Turf
- Unfavorable foreign currency exchange effects in Production & Precision Ag and Construction & Forestry
- Lower warranty expenses benefited Small Ag & Turf
- Small Ag & Turf operating margin expanded to 19.2% from 17.9% despite lower volumes
“As we navigate the current environment, our customers remain our top priority. I'm incredibly proud of our team's execution this quarter, delivering exceptional performance despite challenging market dynamics. Their dedication and hard work have been instrumental in ensuring our customers continue to receive the high-quality service and products they expect from John Deere.”
Deere CEO, on the earnings call
Forward Guidance & Outlook
Deere forecasts fiscal 2025 net income attributable to Deere & Company in a range of $4.75 billion to $5.50 billion, a broadened range reflecting dynamic market conditions. The outlook incorporates global import tariffs in effect as of May 13, 2025 but does not include potential impacts of future tariffs. Segment-level guidance: Production & Precision Ag net sales down 15-20% with operating margin of 15.5-17.0%; Small Ag & Turf net sales down 10-15% with operating margin of 11.5-13.5%; Construction & Forestry net sales down 10-15% with operating margin of 8.5-11.5%. Financial Services net income forecast at approximately $750 million. Equipment operations net operating cash flow forecast at $4.5-5.5 billion with capital expenditures of approximately $1.4 billion and effective tax rate of 20-22%. Industry outlook shows U.S. & Canada large ag down ~30%, small ag & turf down 10-15%, Europe ag down ~5%, South America and Asia ag flat, U.S. & Canada construction equipment down ~10%, compact construction down ~5%, global forestry flat to down 5%, and global roadbuilding flat.
DE YoY Financials
DE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.