Deere & Company (NYSE:DE) Posts Earnings Results, Beats Estimates By $0.41 EPS

Deere & Company (NYSE:DE) issued its quarterly earnings data on Thursday. The industrial products company reported $5.10 EPS for the quarter, beating analysts’ consensus estimates of $4.69 by $0.41, FiscalAI reports. Deere & Company had a return on equity of 18.10% and a net margin of 10.16%.The firm had revenue of $12.61 billion for the quarter, compared to analyst estimates of $10.81 billion. During the same period in the prior year, the firm posted $4.75 EPS. The company’s revenue for the quarter was up 6.2% on a year-over-year basis.

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

• Strong third-quarter execution lifted equipment operating margin to 14.4%, with net sales up 6% and net income of $1.379 billion, or $5.10 per share.
• Deere raised fiscal 2026 net income guidance to $4.75 billion-$5.0 billion and equipment cash-flow guidance to $5.0 billion-$5.5 billion, while also increasing Financial Services net income guidance to $870 million.
• Construction & Forestry and Small Ag & Turf remain key sources of strength, supported by infrastructure, data-center, rental, dairy/livestock, and turf demand; C&F order books extend into fiscal 2027 and technology adoption is accelerating.
• Large agricultural markets remain weak, particularly in South America and Europe, leading Deere to forecast Production & Precision Ag sales down approximately 10% and large-ag industry sales down 15%-20% in North America.
• Deere expects approximately $1.1 billion of direct tariff expense in fiscal 2026, with net tariff exposure of roughly $750 million after refunds, and anticipates a higher net run rate near $1 billion in fiscal 2027.

Deere & Company Stock Up 4.5%

DE opened at $648.61 on Friday. Deere & Company has a twelve month low of $433.00 and a twelve month high of $674.19. The company’s 50-day moving average price is $606.90 and its two-hundred day moving average price is $590.75. The stock has a market cap of $175.08 billion, a price-to-earnings ratio of 36.03, a PEG ratio of 2.63 and a beta of 0.90. The company has a quick ratio of 1.95, a current ratio of 2.10 and a debt-to-equity ratio of 1.45.

Deere & Company Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Tuesday, June 30th were paid a $1.62 dividend. This represents a $6.48 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Tuesday, June 30th. Deere & Company’s dividend payout ratio is 36.00%.

Institutional Investors Weigh In On Deere & Company

A number of institutional investors and hedge funds have recently modified their holdings of DE. Brighton Jones LLC raised its holdings in shares of Deere & Company by 39.1% in the 4th quarter. Brighton Jones LLC now owns 4,548 shares of the industrial products company’s stock valued at $1,927,000 after acquiring an additional 1,278 shares in the last quarter. Schnieders Capital Management LLC. grew its stake in Deere & Company by 7.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,076 shares of the industrial products company’s stock worth $1,056,000 after buying an additional 150 shares in the last quarter. Sherbrooke Park Advisers LLC bought a new position in shares of Deere & Company in the 3rd quarter worth $248,000. Vista Capital Partners Inc. purchased a new stake in shares of Deere & Company during the 2nd quarter valued at $223,000. Finally, Brooks Moore & Associates Inc. purchased a new position in Deere & Company in the second quarter worth $223,000. 68.58% of the stock is owned by hedge funds and other institutional investors.

More Deere & Company News

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

• Positive Sentiment: Q3 earnings and revenue beat expectations. Deere reported earnings of $5.10 per share, up from $4.75 a year earlier, on revenue of $12.61 billion, which rose about 6% year over year and exceeded analyst estimates. Deere Reports Third Quarter Net Income
• Positive Sentiment: Management raised its fiscal 2026 outlook. Deere increased its net-income forecast to $4.75 billion-$5.00 billion and expects $5.0 billion-$5.5 billion in equipment-operations cash flow, improving confidence in profitability and cash generation. Deere Raises FY2026 Outlook
• Positive Sentiment: Construction and forestry provided the key growth engine. Demand for bulldozers, excavators and other earth-moving equipment is largely booked through the rest of the year, supported by data-center and energy-infrastructure construction tied to artificial-intelligence investment. Deere Lifts Sales Guidance
• Positive Sentiment: The agricultural cycle may be nearing a bottom. Executives characterized fiscal 2026 as the likely trough for the agricultural equipment cycle and pointed to improving early order trends and potentially stronger demand in 2027. Deere also recognized $110 million in tariff refunds during the quarter. DE Q3 Earnings Call Highlights
• Neutral Sentiment: Analyst reactions were mixed but generally reflected higher estimates. Robert W. Baird raised its target to $640 and JPMorgan increased its target to $585, while both retained neutral ratings. Other analysts lifted targets as high as $685, indicating expectations have improved but also that valuation and limited near-term upside remain concerns. Deere Analysts Increase Forecasts
• Negative Sentiment: Agriculture remains a constraint. Production and precision agriculture demand is still weak, and Bank of America cautioned that any recovery may be gradual rather than a sharp cyclical rebound. The stock’s elevated valuation could make it vulnerable if farm-market improvement is delayed.

Analysts Set New Price Targets

Several brokerages have recently commented on DE. Raymond James Financial lowered their target price on shares of Deere & Company from $765.00 to $700.00 and set an “outperform” rating on the stock in a report on Friday, May 22nd. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $752.00 target price on shares of Deere & Company in a report on Monday, June 1st. Wall Street Zen downgraded shares of Deere & Company from a “hold” rating to a “sell” rating in a research report on Saturday. JPMorgan Chase & Co. upped their price target on shares of Deere & Company from $570.00 to $585.00 and gave the company a “neutral” rating in a research report on Friday. Finally, Truist Financial increased their price objective on Deere & Company from $759.00 to $812.00 and gave the company a “buy” rating in a report on Thursday, July 2nd. Fourteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $643.38.

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.