Core Insights - Deere & Company is a leading American multinational with a market cap of $127 billion, making it a large-cap stock in the agricultural and heavy construction machinery industry [2]. Financial Performance - In Q4 2025, Deere reported net sales of $12.02 billion, a 9% decline year-over-year, with net income dropping to $1.29 billion or $4.75 per share from $1.73 billion or $6.29 per share a year earlier [5]. - The company's operating profit fell 32% to $1.57 billion, indicating compressed margins [5]. - Full-year net-income guidance was narrowed to $4.75–$5.25 billion, reflecting challenging market conditions and weaker equipment demand [6]. Segment Performance - The Production & Precision Agriculture segment experienced a 16% decline in sales and a 50% drop in operating profit [6]. - The Construction & Forestry segment also saw a 5% decrease in sales, with profits nearly halved [6]. Stock Performance - DE stock has decreased 12% from its all-time high of $533.78 on May 16 and has dropped 3.7% over the past three months, underperforming the Nasdaq Composite's 7.8% rise [3]. - Year-to-date, DE stock has increased by 10.9% and 1.9% over the past 52 weeks, although it has lagged behind the Nasdaq's 20.2% and 21.1% increases respectively [4].

Core Insights - Deere & Company (DE) has a market capitalization of $129.2 billion and specializes in manufacturing agricultural, construction, forestry, and turf equipment, along with providing precision agriculture technologies and financial services [1] Performance Overview - Over the past 52 weeks, DE shares have increased by 22.1%, outperforming the S&P 500 Index, which rose by 14.5%. However, year-to-date, DE's stock is up 13.5%, lagging behind the S&P 500's 16.5% return [2] - DE has also outperformed the First Trust Indxx Global Agriculture ETF (FTAG), which saw a 10.1% increase over the past 52 weeks and a 12.7% rise year-to-date [3] Financial Results - In Q3, DE reported revenue of $12 billion and earnings per share (EPS) of $4.75, both exceeding analyst expectations. However, the stock fell by 6.8% on the announcement day due to a 16.2% decline in the Production & Precision Agriculture division and an overall revenue decrease of 8.6% compared to the previous year [4] - The net income per share dropped by 24.5%, and the company narrowed its fiscal 2025 net income guidance, citing a challenging operating environment [4] Future Expectations - For the current fiscal year ending in October, analysts project DE's EPS to decline by 27.5% year-over-year to $18.57. Despite this, DE has a strong earnings surprise history, exceeding consensus estimates in the last four quarters [5] - Among 23 analysts covering DE, the consensus rating is a "Moderate Buy," with 11 "Strong Buy," 2 "Moderate Buy," 9 "Hold," and 1 "Strong Sell" rating [5]