Deere 2025 Q4 Earnings Revenue Surges 11.7% but Net Income Falls 14.7%

Deere (DE) reported mixed Q4 2025 results, with revenue exceeding expectations but net income and EPS declining year-over-year. The company also issued 2026 guidance below analyst estimates, citing persistent agricultural sector challenges and tariff impacts.

Revenue

Deere’s total revenue surged 11.7% to $12.09 billion, driven by strong performance across its segments. Net sales contributed $10.58 billion, while finance and interest income added $1.51 billion, with other income rounding out the total at $300 million.

Earnings/Net Income

Earnings declined sharply, with EPS falling 13.8% to $3.94 and net income dropping 14.7% to $1.06 billion. The decline reflects elevated costs linked to tariffs and margin pressures in key markets.

Price Action

The stock price of Deere has edged down 1.52% during the latest trading day, has edged down 1.03% during the most recent full trading week, and has edged down 1.72% month-to-date.

Post-Earnings Price Action Review

The strategy of buying DE stocks when revenues beat and holding for 30 days delivered strong results, with a 90.22% return, significantly outperforming the benchmark return of 83.07%. The strategy's excess return of 7.14% indicates effective capitalization on positive earnings surprises. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.59, the strategy demonstrated robust risk management, maintaining gains despite market volatility.

CEO Commentary

John May, Deere’s CEO, emphasized resilience amid 2025 challenges, highlighting progress in Smart Industrial and technology investments like JDLink Boost and autonomous solutions. He expressed confidence in future growth, citing upcoming Investor Day and strategic focus on inventory management and cost control.

Guidance

Deere guided for FY 2026 net income between $4.0 billion–$4.75 billion, below analyst estimates of $5.33 billion. The company anticipates a 15%–20% decline in U.S. and Canadian large ag sales, with flat results in South America.

Additional News

Deere announced plans to integrate Sentera’s drone-based imagery into its Operations Center™, enhancing precision agriculture data tools. The company also reaffirmed its commitment to an "A" credit rating and share repurchases while navigating ongoing tariff impacts. CEO John May noted 2026 could mark the bottom of the large ag cycle, with growth expected in Small Agriculture & Turf and Construction & Forestry.