John Deere today reported a net income of $1.065 billion, or $3.93 per share, for the fourth quarter ended Nov. 2, 2025. That compares to $1.245 billion, or $4.55 per share, for the fourth quarter, ended Oct. 27, 2024.
Despite the year-over-year decline, the $3.93 per share income reported by the Moline-based global equipment maker beat analysts’ consensus estimate of $3.85.
Worldwide net sales and revenue also were up at Deere & Co. by 11% to $12.394 billion in Q4, and well more than the $9.82 billion analyst prediction. Another bright spot in the 2025 fourth quarter was a 27% increase in its Construction & Forestry division operating profit.
Still, Deere shares fell by more than 5.1% immediately after the annual Thanksgiving Eve release of the report that also forecast a cautious outlook for fiscal year 2026 that projects full-year 2026 earnings between $4.00 billion and $4.75 billion
Deere & Co. Chairman and CEO John May called the just-ended fiscal 2025 one of “challenges and uncertainties.”
The report also showed worldwide net sales and revenues for the full year decreased 12% to $45.684 billion.
In a news release today, Nov. 26, Mr. May also outlined steps Deere has taken to address the ongoing decline in farm profitability, tariff uncertainties and warranty expenses.
The company also provided a cautious outlook for fiscal 2026. Deere now is projecting net income between $4 billion and $4.75 billion for the new fiscal year.
2026 outlook cautious
Net sales were $10.579 billion for the quarter and $38.917 billion for the year, compared with $9.275 billion and $44.759 billion in fiscal 2024, respectively.
“This past year brought its share of challenges and uncertainty, but thanks to the structural improvements we’ve made and the diverse customer segments and geographies we serve, we were able to achieve our best results yet for this point in the cycle,” Mr. May said in the earnings release.
It also highlighted the company’s “resilient performance in the face of difficult market conditions.”
Among the structural changes Deere & Co. has made, the report said, was to implement employee-separation programs in the third quarter of 2024 for salaried workforce in the U.S. and globally including in Europe, Asia, and Latin America. That included salaried administrative workers at John Deere’s World Headquarters in Moline.
“Our continued commitment to delivering customer value and focusing on operational efficiency enabled us to remain resilient and demonstrate the strength of our business,” Mr. May said.
“Looking ahead, we believe 2026 will mark the bottom of the large ag cycle,” he added. “While ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain, our commitment to inventory management and cost control, coupled with expected growth in small agriculture & turf and construction & forestry, positions us to effectively manage the business and seize emerging opportunities as market conditions begin to recover.”
Earnings by sector
Overall, Deere reported mixed results across its primary sector for the fourth quarter. That included:
- Production & Precision Agriculture – Fourth quarter net sales increased 10% over the year to $4.7 billion compared to $4.3 billion in Q4 2024. The earnings report attributed that to higher shipment volumes and favorable price realization. Meanwhile, operating profit decreased due to higher production costs, higher tariffs and other challenges that were partially offset by price realization and higher shipment volumes and sales mix.
- Small Agriculture & Turf – Net sales for Q4 were up 7% at $2.45 billion compared with $2.306 billion in Q4 2024 due to higher shipment volumes. Operating profit decreased due to higher tariffs, warranty expenses, and production costs.
- Construction & Forestry – Net sales increased 27% for the quarter to $3.382 billion from $2.664 billion primarily due to higher shipment volumes and sales, partially offset by increased production costs driven by higher tariffs and other challenges.
- Financial Services – Net income for Q4 2025 was up 69% to $293 million from $173 million in the same quarter last year.
