Deere & Company (NYSE:DE) Issues Earnings Results

Deere & Company (NYSE:DE) released its earnings results on Thursday. The industrial products company reported $6.55 earnings per share for the quarter, beating analysts’ consensus estimates of $5.70 by $0.85, Zacks reports. The business had revenue of $11.78 billion during the quarter, compared to the consensus estimate of $11.55 billion. Deere & Company had a net margin of 10.29% and a return on equity of 18.93%. The company’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $6.64 EPS.

Here are the key takeaways from Deere & Company’s conference call:

• Deere reported Q2 net sales and revenues up 5% to $13.369 billion, with equipment operations margin of 16.9% and net income of $1.773 billion. Management said the quarter was solidly executed and the company maintained its full-year net income outlook.
• Construction & Forestry was the standout segment, with sales up 29% year over year and operating margin at 14.8%. Deere raised full-year C&F sales guidance to up about 20% and lifted the segment margin outlook to 10%-12% on strong infrastructure, road-building, and data-center demand.
• Production & Precision Ag sales fell 14% in the quarter as large ag remains under pressure from weak demand and high input costs. Deere still expects full-year segment sales to be down 5%-10% and continues to view 2026 as the bottom of the ag cycle.
• Small Ag & Turf continued to perform well, with quarterly sales up 16% and operating margin at 20.6%. Deere said turf demand is recovering and dairy/livestock economics remain supportive, while full-year sales are still expected to rise about 15%.
• Tariff dynamics were a major factor in the quarter: Deere recorded a $272 million IEPA tariff refund, but still expects about $1.2 billion of full-year tariff exposure. Management said it is relying on cost actions, sourcing changes, and exemptions rather than customer surcharges to manage the impact.

Deere & Company Trading Down 5.3%

NYSE DE opened at $530.84 on Friday. The firm has a market capitalization of $143.38 billion, a P/E ratio of 29.92, a PEG ratio of 1.96 and a beta of 0.96. The company has a current ratio of 2.21, a quick ratio of 1.96 and a debt-to-equity ratio of 1.59. The business has a fifty day simple moving average of $577.80 and a 200 day simple moving average of $539.87. Deere & Company has a 12 month low of $433.00 and a 12 month high of $674.19.

Deere & Company Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 8th. Investors of record on Tuesday, March 31st were given a $1.62 dividend. This represents a $6.48 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Tuesday, March 31st. Deere & Company’s dividend payout ratio is presently 36.53%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Richwood Investment Advisors LLC grew its stake in Deere & Company by 1.0% in the 4th quarter. Richwood Investment Advisors LLC now owns 1,937 shares of the industrial products company’s stock valued at $902,000 after purchasing an additional 20 shares during the period. Blue Chip Partners LLC grew its stake in Deere & Company by 1.4% in the 2nd quarter. Blue Chip Partners LLC now owns 1,574 shares of the industrial products company’s stock valued at $801,000 after purchasing an additional 21 shares during the period. Centaurus Financial Inc. grew its stake in Deere & Company by 2.0% in the 3rd quarter. Centaurus Financial Inc. now owns 1,355 shares of the industrial products company’s stock valued at $620,000 after purchasing an additional 27 shares during the period. Circle Wealth Management LLC grew its stake in Deere & Company by 1.4% in the 4th quarter. Circle Wealth Management LLC now owns 1,970 shares of the industrial products company’s stock valued at $917,000 after purchasing an additional 27 shares during the period. Finally, Johnson Investment Counsel Inc. grew its stake in Deere & Company by 0.4% in the 4th quarter. Johnson Investment Counsel Inc. now owns 7,387 shares of the industrial products company’s stock valued at $3,439,000 after purchasing an additional 27 shares during the period. Institutional investors own 68.58% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on DE shares. DA Davidson increased their target price on shares of Deere & Company from $580.00 to $775.00 and gave the company a “buy” rating in a research report on Friday, February 20th. Bank of America lowered their target price on Deere & Company from $672.00 to $607.50 and set a “neutral” rating on the stock in a research report on Friday. JPMorgan Chase & Co. upped their target price on Deere & Company from $525.00 to $550.00 and gave the stock a “neutral” rating in a research report on Friday, April 10th. Wells Fargo & Company upped their target price on Deere & Company from $543.00 to $750.00 and gave the stock an “overweight” rating in a research report on Friday, February 20th. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $715.00 target price on shares of Deere & Company in a research report on Friday, February 20th. Fifteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $652.23.

Deere & Company News Roundup

Here are the key news stories impacting Deere & Company this week:

• Positive Sentiment: Deere reported second-quarter EPS of $6.55, topping estimates, on revenue of $11.78 billion, also above forecasts; strength in Small Ag & Turf and Construction & Forestry helped offset softer farm equipment demand.
• Positive Sentiment: The company maintained its full-year net income outlook, signaling management confidence despite a difficult farm economy and tariff-related uncertainty. Reuters: Deere beats second-quarter profit estimate but maintains full-year forecast
• Positive Sentiment: Construction & Forestry was a bright spot, with strong sales growth helping support total results and partially offsetting the downturn in agricultural machinery.
• Neutral Sentiment: Deere’s earnings included a tariff-related recovery item, which may have boosted results but is not seen as a recurring earnings driver.
• Neutral Sentiment: Recent commentary also highlighted Deere as a potential AI-infrastructure beneficiary through connectivity partnerships, but this is not yet a meaningful near-term financial catalyst.
• Negative Sentiment: Production & Precision Agriculture sales fell sharply, and management kept a cautious outlook for fiscal 2026, reinforcing concerns that the large-farm equipment cycle has not recovered.
• Negative Sentiment: Several reports noted that weak farm demand and ongoing challenges for farmers are overshadowing the earnings beat, which is weighing on the stock.
• Negative Sentiment: A new class-action lawsuit alleging restrictive “right to repair” practices adds legal risk around Deere’s aftermarket model and could pressure sentiment further. Yahoo Finance: Deere Lawsuit Puts Right To Repair Model And Aftermarket Profits Under Review

About Deere & Company

Deere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.

The company’s principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.