Deere & Company (NYSE:DE) reported stronger-than-expected third-quarter results on Thursday, yet its shares fell 5% after the farm equipment manufacturer narrowed its full-year profit outlook due to persistent market uncertainties.
The agricultural machinery leader posted adjusted earnings of $4.75 per share for the quarter ending July 27, 2025, surpassing analyst expectations of $4.58. Revenue totaled $10.6 billion, above the $10.35 billion consensus, although still down 9% from the same quarter last year.
Deere now anticipates full-year net income between $4.75 billion and $5.25 billion, a revision from its prior range of $4.75 billion to $5.50 billion, reflecting caution amid ongoing market challenges and customer hesitancy in the agricultural sector.
“By proactively managing inventory, we’ve matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs,” said John May, chairman and CEO of John Deere. “By continuing to address the high levels of used equipment in the industry, we’re building a healthier market for everyone.”
Sales in the Production & Precision Agriculture segment fell 16%, while operating profit dropped 50% compared to the same quarter last year. Small Agriculture & Turf sales edged down 1%, and Construction & Forestry sales declined 5%.
Deere’s financial services arm performed strongly, with net income rising 34% to $205 million, helped by a lower provision for credit losses.
“The increasing utilization and proven in-field effectiveness of advanced technologies—such as See & Spray and Harvest Settings Automation—are empowering customers to improve their productivity and better navigate industry challenges,” May added.
For fiscal 2025, Deere expects large agriculture equipment sales in the U.S. and Canada to fall roughly 30%, while small agriculture and turf equipment sales are projected to drop about 10%.
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