Large Ag Cycle
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Deere Not Out of the Woods Yet. Here's Why the Stock is Falling Today.
Investopedia· 2025-11-26 15:55
Core Insights - Deere & Company shares declined following a weak forecast, indicating that challenging market conditions will persist for an extended period [1][5] Financial Performance - In the fourth quarter of fiscal 2025, Deere reported earnings per share of $3.93 and revenue of $12.39 billion, both surpassing analyst expectations [3] - The Production & Precision Agriculture division saw a sales increase of 10% to $4.74 billion, while the Small Agriculture & Turf unit grew by 7% to $2.46 billion, and the Construction & Forestry segment surged by 27% to $3.38 billion [3] Future Outlook - For fiscal 2026, Deere anticipates net income between $4.00 billion and $4.75 billion, lower than the analyst consensus of $5.19 billion [2] - The company expects a decline in Production & Precision Agriculture sales by 5% to 10%, while projecting a 10% increase in both Small Agriculture & Turf and Construction & Forestry sales [4]