Deere narrows full-year profit outlook; shares fall

Investing.com -- Deere & Company reported better-than-expected third-quarter results on Thursday, but shares fell 5% as the farm equipment manufacturer narrowed its full-year profit guidance amid ongoing market challenges.

The agricultural machinery giant posted adjusted earnings of $4.75 per share for the quarter ended July 27, 2025, exceeding analyst expectations of $4.58. Revenue came in at $10.6 billion, above the consensus estimate of $10.35 billion, though still down 9% compared to the same period last year.

Deere narrowed its full-year net income guidance to between $4.75 billion and $5.25 billion, compared to its previous forecast of $4.75 billion to $5.50 billion, reflecting continued caution about market conditions. The company cited customer hesitancy amid ongoing uncertainty 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."

The company’s Production & Precision Agriculture segment saw a 16% decline in sales and a 50% drop in operating profit compared to the same quarter last year. Small Agriculture & Turf sales decreased slightly by 1%, while Construction & Forestry sales fell 5%.

Deere’s financial services division was a bright spot, with net income increasing 34% to $205 million, driven by a lower provision for credit losses.

Despite current challenges, the company remains focused on its technology offerings. "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 U.S. and Canada large agriculture equipment sales to decline approximately 30%, while small agriculture and turf equipment sales are projected to decrease around 10%.

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