Core Insights - Deere reported a decline in first-quarter profit, primarily affected by tariffs and reduced demand for tractors [1] Company Performance - The company's profit for the first quarter was lower compared to previous periods, indicating challenges in maintaining profitability [1] - Tariffs imposed on imports have negatively impacted the company's financial performance [1] - There is a noticeable weakness in tractor demand, which has further contributed to the decline in profits [1]

Core Viewpoint - Deere & Company reported a net income of $656 million for the first quarter of fiscal 2026, a decrease from $869 million in the same quarter of the previous year, while increasing its net income guidance for the fiscal year to a range of $4.5 billion to $5.0 billion, indicating resilience and growth potential across diverse customer segments and geographies [1][2][3] Financial Performance - Net income for Q1 2026 was $656 million, or $2.42 per share, compared to $869 million, or $3.19 per share, in Q1 2025, reflecting a 25% decrease [1][2] - Worldwide net sales and revenues increased by 13% to $9,611 million in Q1 2026, up from $8,508 million in Q1 2025 [1][2] - Net sales for the quarter were $8,001 million, compared to $6,809 million in the same quarter of 2025, marking a 17.5% increase [1][2] Segment Performance - **Production & Precision Agriculture**: - Net sales increased by 3% to $3,163 million, but operating profit decreased by 59% to $139 million due to higher tariffs and unfavorable sales mix [1][2] - **Small Agriculture & Turf**: - Net sales rose by 24% to $2,168 million, with operating profit increasing by 58% to $196 million, driven by higher shipment volumes [1][2] - **Construction & Forestry**: - Net sales increased by 34% to $2,670 million, with operating profit rising by 111% to $137 million, attributed to higher shipment volumes and production efficiencies [1][2] Company Outlook - The company forecasts net income for fiscal 2026 to be in the range of $4.5 billion to $5.0 billion, indicating a positive outlook for growth as it transitions out of the current cycle [1][2] - Deere's sustained investment in research and development is expected to yield measurable results, enhancing its product portfolio across all business segments [1][2] Industry Outlook - **Agriculture & Turf**: - U.S. & Canada: Large Ag expected to decline by 15% to 20%, while Small Ag & Turf is flat to up 5% [1] - Europe: Flat to up 5% [1] - South America: Down approximately 5% [1] - Asia: Flat to down 5% [1] - **Construction & Forestry**: - U.S. & Canada: Construction Equipment up approximately 5% [1] - Global Forestry flat [1] - Global Roadbuilding up approximately 5% [1]

格隆汇2月19日｜美国机械制造商Deere：第一季度每股收益2.42美元，去年同期为3.19美元，市场预期 为2.05美元；净收入为6.56亿美元，同比下降25%，市场预期为5.54亿美元。预计全年净收入为45亿至 50亿美元，此前预计40亿至47.5亿美元。 ...

Financial Performance - Deere & Company reported a net income of $656 million for Q1 2026, down 25% from $869 million in Q1 2025, resulting in earnings per share of $2.42 compared to $3.19[1][25] - Total net sales and revenues increased by 13% to $9,611 million in Q1 2026, up from $8,508 million in Q1 2025, with net sales of $8,001 million compared to $6,809 million[2][24] - Net income for the three months ended February 1, 2026, was $655 million, down from $867 million for the same period in 2025, representing a decrease of about 24.4%[29] - Net income for the Equipment segment decreased to $411 million in Q1 2026 from $637 million in Q1 2025, a decline of 35.5%[40] Segment Performance - Production & Precision Agriculture segment net sales rose by 3% to $3,163 million, while operating profit decreased by 59% to $139 million due to higher tariffs and warranty expenses[4][6] - Small Agriculture & Turf segment net sales increased by 24% to $2,168 million, with operating profit up 58% to $196 million, driven by higher shipment volumes[5][10] - Construction & Forestry segment net sales surged by 34% to $2,670 million, with operating profit more than doubling to $137 million, attributed to production efficiencies and higher shipment volumes[6][13] Financial Outlook - The company forecasts net income for fiscal 2026 to be in the range of $4.5 billion to $5.0 billion, reflecting an increase in guidance[3][5] - The outlook for the agricultural business remains cautious, with potential impacts from global trade policies, commodity prices, and macroeconomic conditions[9][21] - Deere's diverse customer segments and geographies are expected to provide resilience and growth opportunities moving forward[10][5] Cash Flow and Investments - Cash flows from operating activities showed a net cash used of $890 million in Q1 2026, compared to $1,132 million in Q1 2025, indicating an improvement of about 21.4%[29] - Net cash provided by investing activities was $1,822 million in Q1 2026, up from $1,416 million in Q1 2025, reflecting increased cash inflows[40] - Financing activities resulted in a net cash outflow of $2,490 million in Q1 2026, compared to an outflow of $923 million in Q1 2025, indicating higher financing costs[40] Assets and Liabilities - Total assets decreased to $103,436 million as of February 1, 2026, from $105,996 million on November 2, 2025, reflecting a decline of approximately 1.5%[27] - Total liabilities decreased to $77,079 million as of February 1, 2026, from $79,989 million on November 2, 2025, a reduction of about 3.6%[27] - The company reported a decrease in financing receivables to $42,113 million as of February 1, 2026, from $44,575 million on November 2, 2025, a decline of approximately 5.5%[27] Equity and Cash Position - The company’s total stockholders' equity increased to $26,307 million as of February 1, 2026, from $25,956 million on November 2, 2025, reflecting a growth of about 1.4%[27] - Cash, cash equivalents, and restricted cash at the end of the period were $7,073 million, compared to $6,907 million at the end of the same period in 2025, an increase of approximately 2.4%[29] - Cash and cash equivalents decreased to $6,798 million from $8,276 million, reflecting a decline of approximately 18%[38] Research and Development - The company is investing in research and development to launch innovative products across all business segments, positioning itself for growth as it transitions out of the current cycle[8][4] - Research and development expenses were $554 million in Q1 2026, up from $526 million in Q1 2025, reflecting an increase of approximately 5.3%[35]

Key Takeaways Caterpillar posted record Q4 2025 revenues of $19.1B, up 18%, with EPS returning to growth.CAT guides 2026 revenues near upper 5-7% CAGR, anticipates a $2.6B tariff impact.Deere faces a 2026 net income decline and tariff costs, with earnings estimates trending lower.Caterpillar Inc. (CAT) and Deere & Company (DE) remain two of the most prominent players in the heavy machinery space. Caterpillar, widely recognized for its yellow equipment, caters to diverse end markets such as construction, min ...

Group 1 - The software trade, particularly in cybersecurity, is experiencing pressure, exemplified by Palo Alto Networks (PANW) shares falling by up to 6% after the company revised its full-year earnings outlook downward [1] - As of February 13, 74% of S&P 500 companies have reported their results, with blended earnings growth at 13.2%, indicating a strong performance overall [1] - If the current growth rate of 13.2% is maintained, it would mark the 10th consecutive quarter of annual earnings growth for the S&P 500 and the fifth consecutive quarter of double-digit growth [2] Group 2 - General Mills (GIS) shares declined following disappointing earnings, while eToro (ETOR) saw a stock increase of over 20% due to a strong quarterly performance [2] - Upcoming earnings reports from major companies such as Walmart (WMT), Deere & Co. (DE), Analog Devices (ADI), Booking Holdings (BKNG), DoorDash (DASH), and eBay (EBAY) will be closely monitored by investors [3]

Core Insights - Deere & Company (DE) is set to report its first-quarter fiscal 2026 results on February 19, with earnings expected to be $1.92 per share, reflecting a 39.8% decline year-over-year, while revenues are projected to increase by 11.7% to $7.60 billion [1][4]. Earnings Estimates - The Zacks Consensus Estimate for Deere's earnings has decreased by 4.5% over the past 60 days [1]. - The earnings estimates for the upcoming quarters are as follows: Q1 at $1.92, Q2 at $5.55, F1 at $16.82, and F2 at $21.92 [2]. - The average earnings surprise over the last four quarters has been 5.2%, with three quarters beating estimates and one missing [2][3]. Segment Performance - The Production & Precision Agriculture segment is expected to generate revenues of $3.05 billion, a 0.6% decrease year-over-year, with operating profit projected to drop by 53% to $159 million [8]. - The Small Agriculture & Turf segment is anticipated to see revenues of $2.16 billion, indicating a 23.7% increase, with operating profit expected to rise by 49.2% to $185 million [9]. - The Construction & Forestry segment's sales are projected at $2.37 billion, an 18.7% increase, with operating profit estimated at $84 million, up from $65 million in the prior year [10]. - The Financial Services segment is expected to report revenues of $1.38 billion, a 5.9% decline, with operating profit projected at $238 million, down from $266 million [11]. Market Context - Deere's stock has increased by 27.3% over the past year, outperforming the industry growth of 24.9% [12]. - The company is currently facing challenges due to weak farmer spending amid low commodity prices, which has led to production adjustments [6].

Quick Read Deere (DE) net income collapsed 50.5% from its fiscal 2023 peak during the agricultural downturn. Revenue fell to $44.7B. Deere’s payout ratio jumped from 14% to 34.2% over two years. Free cash flow coverage dropped from 2.88x to 1.88x. Deere shares gained 33.5% year-to-date despite earnings pressure. Investors are betting on agricultural recovery. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more ...

Core Insights - Deere & Company has maintained a quarterly dividend of $1.62 per share, marking the fourth consecutive quarter at this level, despite facing significant earnings pressure due to an agricultural downturn [1][2] - The company's net income fell 50.5% from its fiscal 2023 peak, with revenue declining to $44.7 billion in fiscal 2025 [1] - Despite these challenges, Deere's stock has appreciated by 33.5% year-to-date, indicating investor optimism regarding a potential recovery in agricultural markets [1] Dividend Growth Trajectory - Deere's annual dividend payouts increased from $3.04 in 2020 to $6.48 in 2025, representing a 113% growth over five years [1] - The company has consistently paid dividends for over two decades, with the current quarterly rate being 7.4 times higher than the $0.22 payment in 2003 [1] Earnings Reality Check - In fiscal 2025, Deere's net income dropped to $5.027 billion from $7.1 billion in fiscal 2024, a year-over-year decline of 29% [1] - Revenue also decreased from $50.518 billion in fiscal 2024 to $44.665 billion in fiscal 2025, with operating margins compressing from 22.6% to 18.8% [1] Cash Flow Metrics - Operating cash flow for fiscal 2025 was $7.459 billion, down 19% from the previous year, leading to a free cash flow of $3.231 billion, which is only 1.88 times the dividend payment [1] - The first quarter of fiscal 2025 saw negative operating cash flow of $1.132 billion, while dividends of $403 million were still paid [1] Balance Sheet Strength - Total shareholder equity rose by 13.6% to $25.95 billion in fiscal 2025, with retained earnings increasing to $59.676 billion [1] - The debt-to-equity ratio improved from 2.87x to 2.47x, with total debt decreasing to $63.936 billion, although interest expenses rose to 7.1% of revenue [1] Historical Context - Deere has previously navigated challenging dividend situations, maintaining dividends even when free cash flow coverage dropped to 0.69x in fiscal 2022 [1] - The current free cash flow coverage of 1.88x is significantly better than past crisis levels [1] Valuation Perspective - Deere's stock trades at a trailing P/E of 33x and a forward P/E of 37x, reflecting investor expectations of future agricultural recovery [1] - The current dividend yield of 1.09% is below the industrial sector average, indicating that the stock may be more suitable for total-return investors rather than those seeking immediate income [1]

Core Viewpoint - Deere & Company (NYSE:DE) has shown significant stock performance with a 28% increase over the past year and a 31% increase year-to-date, despite a challenging financial outlook [1]. Financial Performance - In the fiscal first quarter, Deere reported a profit of $869 million, reflecting a 50% decrease compared to the previous year [1]. - The company also reported $8.5 billion in net income and revenue, indicating a 30% annual decline [1]. - Previous financial struggles were noted, particularly in the fourth quarter, where tariff pressures were expected to continue affecting margins [1]. Analyst Ratings and Price Targets - Jefferies raised Deere's share price target to $475 from $440 while maintaining a Hold rating, emphasizing the firm's growth strategy reliant on services [1]. - BMO Capital maintained a Market Perform rating with a price target of $460, praising the company's growth targets [1]. Market Sentiment - Jim Cramer expressed a positive sentiment regarding Deere's quarter, indicating confidence in the company's performance despite the financial challenges [2][4].