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Deere & Company Fourth Quarter Earnings Report

On November 26, 2025, Deere & Company (NYSE: DE) announced its financial results for the fourth quarter of the fiscal year, ending November 2, 2025. The company reported a net income of $1.065 billion, equivalent to $3.93 per share. This reflects a decline from the same quarter in 2024, where net income reached $1.245 billion or $4.55 per share. Despite this dip, annual net income for fiscal 2025 totaled $5.027 billion, translating to $18.50 per share compared to $7.100 billion, or $25.62 per share in fiscal 2024.

Financial Performance Overview

The results indicate a mixed performance across various segments of the company. Total net sales and revenues increased by 11% for the quarter, reaching $12.394 billion. However, annual net sales decreased by 12%, amounting to $45.684 billion. This quarterly performance was driven by an increase in sales across Precision Agriculture, Small Agriculture Turf, and Construction forestry segments—each benefitting from improved shipment volumes and pricing strategies.

John May, Chairman and CEO of John Deere, acknowledged the challenges faced over the past year but emphasized that the structural improvements made within the company helped in achieving strong results in a difficult environment. “Our ongoing commitment to delivering customer value and operational efficiency has allowed us to remain resilient and reflect the strength of our business,” May stated.

Segment Highlights

Production & Precision Agriculture: This segment saw a net sales increase to $4.740 billion, a growth of 10% year-over-year. However, operating profit experienced an 8% decrease to $604 million largely due to rising production costs and tariffs.

Small Agriculture & Turf: Revenue rose by 7% to $2.457 billion due to heightened shipment volumes, but operating profit significantly fell by 89%, resulting in only $25 million. This was impacted by increased tariffs and warranty expenses.

Construction & Forestry: Defying trends in other segments, this area experienced growth with a 27% sales increase to $3.382 billion and an uptick in operating profit to $348 million, reflecting a 6% rise.

Financial Services: This sector generated a net income of $293 million, marking a 69% increase primarily due to favorable financing conditions and lower credit loss provisions.

Looking Ahead: Challenges and Opportunities

For fiscal year 2026, Deere has forecasted a net income range between $4 billion and $4.75 billion. The large agriculture sector continues to face significant challenges, with expectations of a 15-20% decrease in sales. Conversely, the company anticipates flat to minor growth in the small agriculture and construction sectors, indicating a shift in demand dynamics.

John May asserted, “We believe 2026 will mark the bottom of the large ag cycle. Despite persistent margin pressures owing to tariffs and industry challenges, our strategic focus on managing inventories and controlling costs, in tandem with expected growth from smaller agriculture and construction sectors, will position us to navigate the recovery effectively.”

The latest financial performance reinforces Deere’s adaptability in the face of market volatility, underscoring the company’s operational resilience and strategic planning for future challenges in its core segments.