TLDR
- Deere & Company (DE) stock hit an all-time high of $633.69, up 10%+ on the day
- Q1 net income came in at $656 million ($2.42/share), beating the $2.02 analyst estimate but down from $3.19/share a year ago
- Revenue rose 13% to $9.61 billion, driven by a 34% jump in construction & forestry and 24% growth in small agriculture & turf
- Full-year net income guidance raised to $4.5B–$5B, up from $4B–$4.75B
- Tariff costs expected to hit $1.2 billion for fiscal 2026, up from $600 million last year
Deere & Company stock surged to an all-time high of $633.69 on Wednesday, jumping more than 10% after the company beat Q1 earnings estimates and raised its full-year outlook.
Q1 net income came in at $656 million, or $2.42 per share. That was down from $869 million, or $3.19 per share, a year ago — but it cleared the FactSet analyst consensus of $2.02 per share by a wide margin.
Revenue rose 13% to $9.61 billion for the quarter.
The growth was led by two key divisions. Construction and forestry net sales jumped 34%, while small agriculture and turf grew 24%.
Those numbers gave the market reason to cheer. For a company that’s been grinding through a prolonged tractor slump, seeing two segments bounce back was a clear positive signal.
Guidance Gets a Lift
Deere raised its full-year net income guidance to a range of $4.5 billion to $5 billion. The previous forecast was $4 billion to $4.75 billion. Analysts were expecting around $4.43 billion, putting the new midpoint comfortably above that.
The company also bumped its growth outlook for both small agriculture & turf and construction & forestry to 15% for the full year, up from 10% previously.
CEO John May said the company is “encouraged by the ongoing recovery in demand within both the construction and small agriculture segments,” even as large agriculture continues to face headwinds.
Production and precision agriculture net sales are still expected to fall 5% to 10% for the year.
Deere has been dealing with a well-documented slowdown in the large tractor market. Farmers have been pulling back on big purchases due to weak farm economics and elevated interest rates.
Tariff Pressure Remains a Real Cost
Tariffs continue to weigh on the bottom line. Deere said in November it expects tariff costs of around $300 million per quarter in fiscal 2026, totaling roughly $1.2 billion for the year. That’s double the $600 million hit it absorbed in fiscal 2025.
That’s a real drag on earnings, and it’s part of why net income fell year-over-year despite the revenue gains.
On the analyst front, Oppenheimer maintained an Outperform rating, pointing to Deere’s technology focus. DA Davidson holds a Buy rating with a $580 price target. BMO Capital is at Market Perform with a $460 target. Bank of America remains Neutral.
Deere also announced plans to open two new U.S. facilities — a distribution center near Hebron, Indiana, and a $70 million excavator factory in Kernersville, North Carolina — expected to create around 300 jobs and open within the year.
The stock has now risen nearly 20% over the past year. InvestingPro data flags the stock as potentially overvalued relative to its Fair Value, though Deere has paid dividends for 55 consecutive years.
At the time of the all-time high print, DE was trading at $633.69.
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