Deere & Co (NYSE:DE) Reports Mixed Q4 Earnings as Net Income Declines

Deere & Co (NYSE:DE) Quarterly Earnings: A Mixed Harvest as Market Digests Results

Earnings Snapshot

Deere & Co has released its financial results for the fourth quarter and full fiscal year 2025. The agricultural machinery giant reported figures that presented a complex picture, beating revenue expectations but falling slightly short on bottom-line earnings per share, leading to a negative reaction in pre-market trading.

The key reported figures for the fourth quarter are as follows:

• Reported Revenue: $10.58 billion
• Analyst Revenue Estimate: $10.14 billion
• Reported EPS (Non-GAAP): $3.93
• Analyst EPS Estimate: $3.96

For the full fiscal year 2025, the company reported net income of $5.027 billion, or $18.50 per share, a significant decrease from the $7.100 billion, or $25.62 per share, reported in fiscal 2024.

Market Reaction and Performance

The immediate market response to the earnings report was negative. In pre-market trading, Deere's stock was down approximately 3.7%. This suggests that investor focus may be leaning more heavily on the earnings per share miss and the broader annual decline in profitability rather than the quarterly revenue beat. This reaction aligns with recent news headlines expressing uncertainty about the timing of a recovery in the U.S. farm economy, which is a core driver of Deere's business.

The stock's recent performance leading into the earnings release had been relatively stable:

• Last Month: +6.4%
• Last Two Weeks: +4.2%
• Last Week: +5.1%

The sharp pre-market decline appears to be a direct reversal of this recent positive momentum, highlighting the market's cautious stance on the company's near-term prospects.

Fiscal Year 2024 in Review and Forward Outlook

The press releases confirm that fiscal 2025 was a challenging year for Deere, with net income dropping by nearly $2.1 billion compared to the previous year. This decline reflects broader pressures in the agricultural sector, including lower commodity prices and elevated input costs for farmers, which can dampen demand for new equipment.

While the provided press releases do not detail Deere's own formal outlook for the upcoming year, analyst estimates provide a benchmark for expectations. Analysts are forecasting for the full 2026 fiscal year:

• Estimated Revenue: $41.18 billion
• Estimated EPS: $21.05

For the immediate next quarter (Q1 2026), the expectations are:

• Estimated Revenue: $7.36 billion
• Estimated EPS: $2.86

The absence of a company-provided outlook in the release is a neutral factor, but the market will be keenly listening to management's commentary during the earnings call for their guidance on how they plan to navigate the current agricultural headwinds.

Press Release Summary

The core announcement from Deere was the disclosure of its fourth-quarter and full-year 2025 financial results. The central takeaways are the year-over-year decline in both quarterly and annual profitability. The company earned $1.065 billion in net income for the fourth quarter, down from $1.245 billion in the same period last year. This culminated in a full-year net income of $5.027 billion, substantially lower than the $7.100 billion earned in fiscal 2024. The revenue beat for the quarter offers a silver lining, indicating that sales volumes may be holding up better than some feared.

For a more detailed breakdown of Deere's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions carry risk, and individuals should conduct their own research or consult with a qualified financial advisor before making any investment decisions.