Deere & Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.33%.
Did DE Beat Earnings? Q3 2025 Results
Deere & Company delivered a stronger-than-expected fiscal third quarter, beating Wall Street on both the top and bottom lines even as the broader agricultural equipment cycle continued to weigh on results. The company posted earnings of $4.75 per diluted share, clearing the $4.59 consensus estimate by 3.58%, while revenue of $12.02 billion exceeded expectations by 16.37%, though it still fell 6.5% from the year-ago period. The sharpest pressure came from the Production & Precision Agriculture segment, where net sales dropped 16% to $4.27 billion and operating profit fell 50% to $580 million as lower shipment volumes and unfavorable price realization took a meaningful toll, compressing operating margins to 13.6% from 22.8%. A $600 million full-year tariff headwind loomed over the results, with Deere absorbing $200 million in tariff-related costs in the quarter alone, contributing to a post-earnings stock selloff despite the headline beats. Looking ahead, Deere narrowed its fiscal 2025 net income guidance to $4.75 billion to $5.25 billion, with industry outlooks for U.S. large agriculture equipment down approximately 30% and construction equipment down approximately 10%.
- Lower shipment volumes across Production & Precision Ag and Construction & Forestry segments
- Unfavorable price realization in Production & Precision Ag and Construction & Forestry
- Higher tariff-driven production costs impacting Construction & Forestry and Small Ag & Turf
- Proactive inventory management to match production with retail demand
- Lower provision for credit losses boosting Financial Services net income
- Lower material costs and reduced warranty expenses partially offsetting declines in Small Ag & Turf
“By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs. By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone—our customers, our dealers, and our business—even in these challenging times.”
Deere CEO, on the earnings call
Forward Guidance & Outlook
Deere narrowed its fiscal 2025 net income guidance to a range of $4.75 billion to $5.25 billion. Equipment operations net operating cash flow is forecast at $4.5–$5.5 billion, with capital expenditures of approximately $1.4 billion and R&D expenses expected down slightly. The effective tax rate is projected at 19–21%. Segment outlooks call for Production & Precision Ag net sales down 15–20% with operating margins of 15.5–17.0%; Small Ag & Turf net sales down approximately 10% with operating margins of 12.0–13.5%; Construction & Forestry net sales down 10–15% with operating margins of 8.5–10.0%; and Financial Services net income of approximately $770 million. Industry unit sales outlooks for fiscal 2025 include U.S. & Canada large ag down approximately 30%, U.S. & Canada small ag & turf down approximately 10%, Europe ag flat to down 5%, South America ag flat, Asia ag flat to up 5%, U.S. & Canada construction equipment down approximately 10%, compact construction flat to down 5%, global forestry flat to down 5%, and global roadbuilding flat. Customers remain cautious amid ongoing trade and tariff uncertainty.
DE YoY Financials
DE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.