First Quarter Earnings: A Mixed Harvest for Deere
Deere & Co (NYSE:DE), the world's leading manufacturer of agricultural and construction equipment, reported financial results for its first fiscal quarter of 2026. The figures present a nuanced picture of a company navigating a period of softer demand, with earnings surpassing expectations but profits declining year-over-year. The market's immediate reaction, a significant pre-market gain, suggests investors are focusing on the positives, including a raised annual outlook.
Earnings and Revenue Versus Estimates
For the quarter ended February 1, 2026, Deere's performance relative to Wall Street expectations was a key focal point. The company delivered a notable beat on the bottom line, while revenue came in slightly ahead of forecasts.
- Earnings Per Share (EPS): Deere reported non-GAAP EPS of $2.42. This comfortably exceeded the analyst consensus estimate of $2.11.
- Revenue: The company posted sales of $8.00 billion for the quarter, edging out the estimated $7.92 billion.
While surpassing estimates, these results represent a decline from the prior year's strong performance. In the first quarter of 2025, Deere reported net income of $869 million, or $3.19 per share. The current quarter's net income of $656 million reflects the ongoing pressures from moderating equipment demand, a trend the company has been managing through strategic cost-cutting initiatives.
Market Reaction and Price Action
The financial markets responded positively to the earnings release. Ahead of the trading session, Deere's stock was indicated up approximately 4.6% in pre-market activity. This bullish move indicates that investors are rewarding the company for exceeding profit expectations and, more significantly, for its revised guidance for the full year. The positive pre-market sentiment contrasts with the stock's relatively flat performance over the past week, highlighting the importance of the earnings event.
Revised Outlook and Analyst Expectations
A primary driver behind the positive market reaction appears to be management's decision to raise its full-year net income forecast. This adjustment signals confidence that earlier cost-cutting measures are effectively cushioning the business and that farm economic conditions are poised for improvement. While the precise numerical guidance from Deere was not detailed in the provided press release, the upward revision aligns with the broader narrative emerging from recent news headlines regarding "improving farm conditions."
Looking ahead, analyst estimates provide a benchmark for future performance. For the upcoming second quarter of 2026, the consensus is for revenue of approximately $11.91 billion and earnings per share around $5.61. For the full 2026 fiscal year, analysts are currently modeling sales of about $41.67 billion and revenue of $17.03 per share. Investors will likely compare Deere's own raised outlook against these figures as the year progresses.
Summary of the Earnings Release
The core announcement from Deere's first-quarter report is twofold. First, the company posted earnings that declined from the previous year but beat analyst estimates, with revenue also coming in slightly above expectations. Second, and perhaps more critically for investor sentiment, management raised its full-year profit forecast. This suggests that the company's operational strategies are gaining traction and that it anticipates a more favorable environment in the agricultural sector.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the full data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
