What to Expect From Deere & Company's Q4 2025 Earnings Report

Deere & Company Q4 2025 Earnings: Key Insights for Investors on Growth and Outlook

Imagine you’re watching a champion sports team that’s hit a rough patch—maybe they’ve lost a few games, but they’ve still got a strong record and lots of fans watching closely. That’s a bit like what’s happening right now with Deere & Company, the famous maker of John Deere tractors and big machines for farms and construction sites.

Why Investors Should Care

Deere & Company isn’t just about tractors. It’s a huge business worth about $128 billion, and its ups and downs can shake up not just your portfolio but the whole machinery and farming sector. If you invest in big companies, industrials, or agriculture, Deere’s performance is a key signal for what could happen next in these markets.

Deere’s Recent Performance: The Good and the Bad

  • Good News: Deere has a strong record of beating Wall Street’s earnings predictions. In the last four quarters, it’s always done better than expected. Last quarter, it made $4.75 per share, which was 2.8% higher than experts guessed.
  • Bad News: Even with these wins, Deere’s profits are dropping. This next quarter, analysts think Deere will make $3.96 per share—that’s 13% less than last year at this time. For the whole year, profits could fall by over 27% compared to last year.

Why the Drop?

  • Sales Falling: Deere’s revenue was down almost 9% compared to last year. Its biggest segment, Production & Precision Agriculture, saw sales drop by more than 16%.
  • Stock Reaction: Even though Deere beat earnings expectations last quarter, its stock dropped almost 7% in one day. Investors worried because sales were down across all major parts of the company.
  • Challenging Environment: High interest rates and tricky trade deals have made it harder for Deere to sell equipment, especially in North America. This means fewer farmers and builders are buying new machines.

What Are the Experts Saying?

Wall Street analysts are a bit split but mostly positive. Out of 23 analysts:

  • 11 say “Strong Buy”
  • 2 say “Moderate Buy”
  • 9 say “Hold”
  • 1 says “Strong Sell”

The average price target is $523.52, which would be about 11% higher than today’s price.

Bull Case: Reasons to Be Optimistic

  • Strong Track Record: Deere has a long history of innovation and bouncing back from tough times. Over the past year, its stock has gone up 17.6%—better than the S&P 500’s 16.9% and the main industrial sector’s 15% return (source).
  • Expected Rebound: Analysts think profits will start growing again in 2026, rising by almost 8% year-over-year.
  • Strong Brand and Financial Services: Deere’s financing arm helps customers buy equipment, keeping sales steady even when the economy gets rocky.
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Bear Case: Reasons to Be Cautious

  • Falling Sales: Ongoing drops in major segments could lead to more profit declines.
  • Interest Rates and Trade: High rates make it harder for customers to borrow money for big purchases, and trade issues can hurt global sales.
  • Market Uncertainty: If the global economy slows down, demand for tractors and construction equipment could fall even more.

Historical Perspective

Deere has been through tough times before. During the 2008 financial crisis, its stock fell by more than 50% but later recovered as the economy bounced back (Investopedia). This shows that while Deere can dip during hard times, it often rebounds with the broader market.

Investor Takeaway

  • Stay Informed: Watch Deere’s next earnings report. If sales keep dropping, it could signal more trouble ahead for the sector.
  • Think Long-Term: Deere’s strong brand and history suggest it can recover, but be ready for ups and downs in the short term.
  • Diversify: If you’re worried about volatility, don’t put all your money in one sector. Mix in other industries or index funds to spread risk.
  • Look for Value: If you believe in Deere’s long-term story, price dips can be a chance to buy at a discount—just be patient for a potential rebound.
  • Watch the Economy: Interest rates and trade policies will impact Deere and its customers. Stay alert to big news that could move the stock.

For the full original report, see Yahoo Finance

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