Deere Stock Falls as Profit Halves, Sales Miss Expectations

Deere & Co. (NYSE:DE) saw its shares fall more than 2% intra-day today after reporting a steep 50% decline in net income and weaker-than-expected sales for its fiscal first quarter, as the agricultural equipment giant grapples with inventory challenges and market uncertainty.

For the quarter, net income dropped to $869 million, down sharply from $1.75 billion a year earlier, though it still slightly exceeded analyst projections of $848.7 million. Revenue plunged 30% to $8.51 billion, while net sales, excluding finance and interest income, fell to $6.81 billion, well below the $7.67 billion consensus estimate.

Deere maintained its full-year 2025 net income forecast of $5 billion to $5.5 billion, despite mounting industry pressures. The company expects sales in its Production & Precision Agriculture division to decline by 15% to 20%, while small agriculture and turf revenue is projected to drop around 10%. Additionally, construction and forestry equipment sales are forecasted to shrink by 10% to 15%.

As the world’s largest farm equipment manufacturer, Deere is navigating a challenging macroeconomic environment, where lower demand and inventory adjustments are weighing on financial performance. While the company held firm on its full-year guidance, the sharp revenue decline and sector-wide headwinds have rattled investors, sending the stock lower.