Deere & Company (NYSE:DE) Issues Earnings Results, Beats Expectations By $0.52 EPS

Deere & Company (NYSE:DE) released its quarterly earnings results on Thursday. The industrial products company reported $2.42 earnings per share for the quarter, beating analysts’ consensus estimates of $1.90 by $0.52, FiscalAI reports. The business had revenue of $9.61 billion during the quarter, compared to analyst estimates of $7.50 billion. Deere & Company had a net margin of 11.00% and a return on equity of 20.54%. The business’s revenue was up 17.5% on a year-over-year basis. During the same period last year, the business earned $3.19 EPS.

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

• Deere raised its fiscal 2026 outlook after a Q1 beat, now projecting mid-single-digit net sales growth for equipment operations and increasing net income guidance to $4.5–$5.0 billion, with Q1 equipment operating margin at 5.9%.
• Small Ag & Turf and Construction & Forestry were strong in Q1 (net sales +24% and +34%, respectively), prompting higher full‑year sales and margin guidance for both segments (Small Ag ~+15%; CNF ~+15% with a 9–11% margin outlook).
• Large ag remains challenged — Deere still expects the North American large‑ag industry to decline 15%–20% in 2026, but reports improving order velocity and materially lower used inventory levels that are beginning to stabilize replacement demand.
• Tariff headwinds remain significant — Deere projects about $1.2 billion of tariff costs for the year and says overall price realization is roughly price‑cost neutral once tariffs are included, making results sensitive to tariff relief or further cost pressure.
• Management is investing for growth — launches of Deere‑designed 20‑ton excavators (CONEXPO) and the acquisition of Tenna to expand mixed‑fleet digital and fleet‑management offerings support long‑term product and services growth.

Deere & Company Stock Performance

NYSE DE traded up $78.12 during trading hours on Thursday, reaching $671.39. The company’s stock had a trading volume of 3,600,185 shares, compared to its average volume of 1,631,414. The stock has a market cap of $181.99 billion, a PE ratio of 36.22, a PEG ratio of 2.40 and a beta of 1.02. The business has a 50-day simple moving average of $515.50 and a 200 day simple moving average of $489.09. Deere & Company has a 52 week low of $404.42 and a 52 week high of $672.95. The company has a current ratio of 2.22, a quick ratio of 2.01 and a debt-to-equity ratio of 1.68.

Deere & Company Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, February 9th. Shareholders of record on Wednesday, December 31st were issued a $1.62 dividend. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $6.48 dividend on an annualized basis and a yield of 1.0%. Deere & Company’s dividend payout ratio (DPR) is currently 35.01%.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. UBS Group reiterated a “buy” rating on shares of Deere & Company in a research note on Tuesday, November 25th. Zacks Research raised Deere & Company from a “strong sell” rating to a “hold” rating in a research report on Wednesday, December 3rd. BMO Capital Markets reiterated a “market perform” rating and set a $460.00 target price on shares of Deere & Company in a research note on Tuesday, December 9th. Wolfe Research lifted their price target on shares of Deere & Company from $520.00 to $550.00 and gave the stock an “outperform” rating in a research note on Friday, January 2nd. Finally, Wall Street Zen raised shares of Deere & Company from a “sell” rating to a “hold” rating in a report on Saturday, February 7th. Fifteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $524.20.

Key Stories Impacting Deere & Company

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

• Positive Sentiment: Q1 earnings and revenue beat — Deere posted $2.42 EPS (above consensus) and worldwide sales of $9.61B, driven by stronger equipment volumes. This outperformance is the primary catalyst for the rally. Read More.
• Positive Sentiment: Management raised FY2026 net income guidance to $4.5B–$5.0B, signalling confidence in recovery trends and supporting higher valuation expectations. Read More.
• Positive Sentiment: Construction and small-ag equipment rebound — management said construction demand is notably strong (construction earnings more than doubled), helping offset weakness in large agriculture and underpinning near-term sales momentum. Read More.
• Neutral Sentiment: Cost-cutting and shipments — Deere cited cost actions and shipments “ahead of plan,” which support margins if sustained, but these are execution-dependent. Read More.
• Neutral Sentiment: Strategic moves and analyst views — Deere is expanding IP and tech capabilities (AI/portfolio expansion) and still carries mostly buy/overweight analyst ratings, though price targets vary widely; that supports longer-term interest but leaves valuation dispersion. Read More.
• Negative Sentiment: Profit decline and tariff headwinds — net income fell year‑over‑year to $656M (mix, higher tariffs and costs squeezed margins), a continuing risk that could cap upside if farm demand stays weak. Read More.
• Negative Sentiment: Insider selling noted — recent filings show several insider sales (no purchases) over past months; that can be perceived as a mild negative signal for sentiment. Read More.

Insider Buying and Selling

In related news, CEO John C. May II sold 41,472 shares of the business’s stock in a transaction that occurred on Thursday, January 8th. The stock was sold at an average price of $501.49, for a total transaction of $20,797,793.28. Following the completion of the transaction, the chief executive officer owned 117,970 shares in the company, valued at $59,160,775.30. The trade was a 26.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Cory J. Reed sold 12,000 shares of the stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $510.00, for a total value of $6,120,000.00. Following the completion of the sale, the insider directly owned 20,792 shares in the company, valued at $10,603,920. This represents a 36.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 64,578 shares of company stock worth $32,471,682 over the last quarter. Insiders own 0.29% of the company’s stock.

Institutional Trading of Deere & Company

Several hedge funds have recently bought and sold shares of the company. Timmons Wealth Management LLC acquired a new position in Deere & Company during the 4th quarter valued at about $29,000. Wealth Watch Advisors INC bought a new stake in Deere & Company during the 3rd quarter valued at $32,000. Strive Financial Group LLC acquired a new position in Deere & Company during the 4th quarter worth $36,000. Greenline Wealth Management LLC acquired a new position in Deere & Company during the 4th quarter worth $36,000. Finally, Prosperity Bancshares Inc bought a new position in shares of Deere & Company in the fourth quarter worth $45,000. 68.58% of the stock is currently owned by institutional investors.

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.