Deere & Co. posted a better-than-expected fourth-quarter print but a subdued fiscal 2026 outlook.
- Deere’s posted Q4 earnings per share of $3.93 compared to the Street estimate of $3.81.
- Deere expects net income for fiscal 2026 to be in the range of $4 billion to $4.75 billion
- The expected net income for FY2026 is below the average Bloomberg estimate of $5.31 billion.
Shares of Deere & Co. (DE) fell over 5% in premarket trading on Wednesday, after the company posted a subdued net income outlook for fiscal 2026.
Deere expects net income for the year to be in the range of $4 billion to $4.75 billion, reflecting a 20% decrease from fiscal 2025, based on the lower end of the range. This is below the average Bloomberg estimate of $5.31 billion.
Segment-wise, the company expects a 5% to 10% drop in production & precision agriculture net sales, and an around 10% increase in both the small agriculture & turf and construction & forestry verticals.
“Looking ahead, we believe 2026 will mark the bottom of the large ag cycle. While ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain, our commitment to inventory management and cost control, coupled with expected growth in small agriculture & turf and construction & forestry, positions us to effectively manage the business and seize emerging opportunities as market conditions begin to recover,” said John May, chairman and CEO of John Deere.
Results Snapshot
The farm equipment maker posted fourth-quarter net income of $1.07 billion, or an earnings per share (EPS) of $3.93, down from $1.25 billion and $4.55 per share, respectively, a year ago. Still, the EPS came in slightly above the Street estimate of $3.81, according to Fiscal.ai.
Full-year fiscal 2025 earnings also declined to $5.03 billion, compared with $7.1 billion in fiscal 2024.
Despite the softer profitability, the company posted an 11% increase in worldwide net sales and revenues in the fourth quarter, reaching $12.39 billion, driven by stronger demand across production & precision agriculture, small agriculture & turf, and construction & forestry segments. However, full-year sales fell 12%, reflecting “difficult market conditions.”
The company added that operating profit across its key segments was impacted by tariffs.
How Did Stocktwits Users React?
Despite the premarket decline, retail sentiment on Stocktwits was ‘extremely bullish’ compared to ‘neutral’ a session earlier, accompanied by ‘extremely high’ message volumes.
However, Stocktwits users highlighted concerns about valuation.
DE stock has been trending higher, finishing in positive territory in four of the last five sessions. Its recent climb also included a decisive break above the 200-day moving average on Monday, the first time it has cleared that level since August.
Year-to-date, DE shares have gained around 17%.
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