Key Stats for Deere Stock
- Price change for Deere stock in the last 6 months: -4%
- $DE Stock Price as of Aug. 20: $621
- 52-Week High: $674
- $DE Stock Price Target: $645
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What Happened?
Deere (DE) stock jumped about 7% on Thursday after the company posted a stronger-than-expected Q3 and raised the low end of its full-year profit outlook.
Net income climbed to $1.38 billion, up from $1.29 billion in the same quarter last year. Total sales and revenues rose 5% to $12.6 billion.
Results were mixed across Deere’s three main business segments.
Construction and Forestry led the way, with sales jumping 18% to $3.6 billion.
Small Ag and Turf also had a strong quarter, with sales up 12% to $3.4 billion.
But Deere’s biggest division, Production and Precision Agriculture, saw sales slip 6% to nearly $4 billion, mainly because shipment volumes fell as farmers worldwide stayed cautious about big equipment purchases.
Equipment operations delivered a 14.4% operating margin for the quarter, which management called a sign of strong execution even as conditions varied across regions.
Construction markets stayed healthy, supported by infrastructure projects, data center construction, and steady demand.
Agriculture, meanwhile, continued to feel pressure from swings in commodity prices and higher input costs.
Tariffs also played a role in the quarter. Deere recognized $110 million in tariff refunds during Q3, bringing the year-to-date total to $382 million.
Looking ahead, the company expects direct tariff expenses of about $1.1 billion for the fiscal year, though management said it has built no further refunds into its outlook for the rest of the year.
Deere raised its full-year net income guidance to a range of $4.75 billion to $5.00 billion, up from prior expectations. Cash flow guidance from equipment operations also improved, now expected between $5 billion and $5.5 billion.
CEO John C. May struck an optimistic tone about where the business stands. He pointed to early order program trends, improving used-equipment inventories, and growing customer adoption of Deere’s advanced technology as reasons for confidence heading into next year.
Management believes 2026 will mark the bottom of the current agricultural equipment cycle, meaning things could start looking up from here.
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What the Market Is Telling Us About Deere Stock
Deere stock’s sharp move higher shows investors were relieved to see profit growth and an improved outlook, especially given the uncertainty surrounding the farm equipment industry lately.
Strength in Construction and Forestry, plus resilient margins even as agriculture sales decline, suggests Deere’s diversified business model is helping it weather a tough stretch in one of its core markets.
The raised guidance matters too.
When a company narrows its range higher instead of lower, it signals management has real visibility into the rest of the year, not just optimism.
With early order programs already showing modest improvement and dealer inventories described as healthier, Deere stock’s rally today reflects growing belief that the worst of the agricultural downturn may be behind the company.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
