Deere & Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.08%.
Did DE Beat Earnings? Q4 2025 Results
Deere & Company closed out fiscal 2025 with a stronger-than-expected quarter, posting earnings of $3.93 per diluted share against a consensus estimate of $3.83, a beat of 2.61%, while revenue climbed 14.5% year-over-year to $12.39 billion. The standout driver was Construction & Forestry, where sales surged 27% to $3.38 billion and helped offset a bruising quarter for Small Agriculture & Turf, which saw operating profit collapse 89% to just $25 million as warranty expenses and tariff headwinds compounded production cost pressures. Full-year net income fell 29% to $5.03 billion, underscoring the weight of the ongoing agricultural downturn cycle, even as CEO John May characterized fiscal 2025 as the company's best performance at this point in the cycle. Looking ahead, Deere projects fiscal 2026 net income of $4 billion to $4.75 billion, with management flagging 2026 as the likely bottom for large ag, where U.S. and Canada industry sales are forecast to decline 15-20%, while construction and small ag segments are expected to provide partial offsets with flat-to-up-5% industry outlooks.
- Higher shipment volumes across all equipment segments drove Q4 revenue growth
- Favorable price realization in Production & Precision Ag
- Construction & Forestry sales surged 27% on higher shipment volumes
- Financial Services benefited from favorable financing spreads and lower provision for credit losses
- Higher tariffs and production costs pressured operating margins across segments
- Litigation accrual of $95 million pretax for antitrust class action
“This past year brought its share of challenges and uncertainty, but thanks to the structural improvements we've made and the diverse customer segments and geographies we serve, we were able to achieve our best results yet for this point in the cycle.”
Deere CEO, on the earnings call
Forward Guidance & Outlook
Deere projects fiscal 2026 net income attributable to the company in a range of $4.00 billion to $4.75 billion. Management believes 2026 will mark the bottom of the large ag cycle. Production & Precision Ag net sales are forecast down 5-10% with operating margins of 11-13%. Small Ag & Turf net sales are forecast up approximately 10% with operating margins of 12.5-14%. Construction & Forestry net sales are forecast up approximately 10% with operating margins of 8-10%. Financial Services net income is forecast at approximately $830 million. Equipment operations net operating cash flow is projected at $4.0-5.0 billion. Capital expenditures are expected at approximately $1.4 billion. Effective tax rate is forecast at 25-27%. Industry outlook for fiscal 2026: U.S. & Canada large ag down 15-20%, U.S. & Canada small ag & turf flat to up 5%, Europe ag flat to up 5%, South America ag flat, Asia ag down approximately 5%. U.S. & Canada construction and compact construction equipment flat to up 5%, global forestry flat, global roadbuilding flat.
DE YoY Financials
DE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.