Deere & Company (NYSE:DE – Get Free Report) issued its earnings results on Thursday. The industrial products company reported $5.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.69 by $0.41, FiscalAI reports. Deere & Company had a return on equity of 18.25% and a net margin of 10.09%.The company had revenue of $12.61 billion during the quarter, compared to analysts’ expectations of $10.81 billion. During the same period in the prior year, the business earned $4.75 EPS. The firm’s quarterly revenue 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 7.5%
Shares of NYSE DE opened at $624.38 on Friday. The company has a quick ratio of 1.95, a current ratio of 2.18 and a debt-to-equity ratio of 1.54. The business’s 50 day moving average is $605.47 and its two-hundred day moving average is $590.34. Deere & Company has a 52-week low of $433.00 and a 52-week high of $674.19. The firm has a market cap of $168.55 billion, a price-to-earnings ratio of 35.38, a PEG ratio of 2.46 and a beta of 0.90.
Deere & Company Dividend Announcement
Hedge Funds Weigh In On Deere & Company
Hedge funds and other institutional investors have recently bought and sold shares of the company. Brighton Jones LLC raised its position in shares of Deere & Company by 39.1% during the 4th quarter. Brighton Jones LLC now owns 4,548 shares of the industrial products company’s stock worth $1,927,000 after acquiring an additional 1,278 shares in the last quarter. Schnieders Capital Management LLC. boosted its holdings in Deere & Company by 7.8% in the second quarter. Schnieders Capital Management LLC. now owns 2,076 shares of the industrial products company’s stock valued at $1,056,000 after purchasing an additional 150 shares in the last quarter. Garton & Associates Financial Advisors LLC purchased a new position in Deere & Company in the fourth quarter valued at approximately $96,000. 1248 Management LLC increased its stake in Deere & Company by 593.8% in the fourth quarter. 1248 Management LLC now owns 111 shares of the industrial products company’s stock valued at $52,000 after purchasing an additional 95 shares during the last quarter. Finally, Rossby Financial LCC raised its holdings in Deere & Company by 765.2% during the fourth quarter. Rossby Financial LCC now owns 199 shares of the industrial products company’s stock worth $93,000 after purchasing an additional 176 shares in the last quarter. 68.58% of the stock is currently owned by hedge funds and other institutional investors.
Key Headlines Impacting Deere & Company
Here are the key news stories impacting Deere & Company this week:
- Positive Sentiment: Deere reported fiscal Q3 earnings of $5.10 per share, above analyst estimates near $4.70–$4.79, while revenue rose roughly 5% year over year to $12.61 billion, substantially exceeding consensus expectations. Deere Reports Third Quarter Net Income of $1.379 Billion
- Positive Sentiment: Management raised fiscal 2026 net-income guidance to $4.75 billion–$5.00 billion from a prior range of $4.5 billion–$5.0 billion, signaling greater confidence in execution and near-term demand. Deere Raises FY2026 Net Income Outlook
- Positive Sentiment: The Construction & Forestry and Small Agriculture & Turf businesses outperformed, offsetting weakness in Production & Precision Agriculture. Demand linked to data centers, energy infrastructure and broader construction activity is providing Deere with a new source of growth as the agricultural cycle remains soft. Deere Stock Soars After Construction Unit Drives Earnings Beat
- Positive Sentiment: CFO Brent Norwood said construction tailwinds and artificial-intelligence-related infrastructure spending are boosting sales, reinforcing the market’s view that Deere is benefiting from more than traditional farm-equipment demand. We’re Riding Construction’s Tailwinds, Deere CFO Says
- Neutral Sentiment: Management suggested the current agricultural-equipment downturn may be approaching a bottom, but a more meaningful farm recovery could be delayed until 2027. Early order trends and used-equipment inventories are improving, though the recovery remains cyclical. Deere Narrows Profit Outlook as Farm Recovery Seen in 2027
- Negative Sentiment: Agricultural demand remains pressured, with weakness in major production-farming markets, while tariffs, regional sales pressure and the possibility of a delayed farm recovery remain risks to future growth and margins.
Wall Street Analyst Weigh In
DE has been the subject of several analyst reports. Seaport Research Partners set a $570.00 price target on shares of Deere & Company in a research note on Friday, August 14th. DA Davidson reiterated a “buy” rating and issued a $685.00 price objective on shares of Deere & Company in a report on Friday, July 17th. Truist Financial raised their target price on Deere & Company from $759.00 to $812.00 and gave the stock a “buy” rating in a research note on Thursday, July 2nd. Raymond James Financial decreased their price target on Deere & Company from $765.00 to $700.00 and set an “outperform” rating on the stock in a research note on Friday, May 22nd. Finally, Bank of America lowered their price target on Deere & Company from $672.00 to $607.50 and set a “neutral” rating for the company in a report on Friday, May 22nd. Fourteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, Deere & Company currently has a consensus rating of “Moderate Buy” and a consensus target price of $641.98.
Check Out Our Latest Analysis on DE
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.
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