Barclays Updates Rating on Deere & Company Amid Geopolitical Tensions

Truist Securities is maintaining its Buy rating on Deere & Company (NYSE:DE) with a $619 price target, highlighting the company's expanding footprint in Brazil as a key driver of long-term growth and earnings resilience.

Over the past two decades, Deere has methodically built out its presence in Brazil, investing in localized manufacturing, product development, and a robust dealer network. These efforts have helped the company capture leading market share in the country while achieving profitability on par with its North American operations.

Brazil’s agricultural sector is increasingly shifting toward large-scale commercial farms, creating fertile ground for Deere’s precision agriculture technologies. The company is seeing a direct link between adoption of these tools and market share gains, reinforcing its strategy to accelerate top-line growth in the region.

While Deere continues to target a 20% through-cycle margin, its performance already exceeds that benchmark thanks to high-margin parts sales, a growing financial services arm, and geographic diversification. The company’s ability to sustain industry-leading margins and deliver consistent earnings through various market cycles positions it as a standout in the industrial sector.

Truist believes Deere’s blend of organic growth, precision ag leadership, and global earnings strength makes a compelling case for continued upside, even in a challenging macro environment.

Melius Research upgraded Deere (NYSE:DE) to Buy from Hold, boosting its price target to $750, citing growing confidence in the company's transformation into a tech-driven agricultural powerhouse.

After a prolonged period of caution, the firm sees Deere's dominant position in precision agriculture and smart farming solutions as a major value catalyst. While the exact timing of a broader cyclical recovery in the ag sector remains unclear, Melius believes the market will soon begin recognizing the long-term earnings potential embedded in Deere’s recurring revenue model.

Deere is targeting recurring and SaaS-style revenue to represent 10% of total sales—an opportunity estimated at $5 billion by 2030. As adoption of these technologies accelerates and the benefits to farmers become more tangible, the firm expects investors to increasingly price in this high-margin growth potential.

With a vast runway for further expansion and monetization of its ag tech innovations, Deere is now viewed by Melius as not just a cyclical equipment manufacturer but a platform for recurring value creation.

Deere & Company (NYSE:DE) beat second-quarter expectations on both earnings and revenue, but trimmed the lower end of its full-year profit outlook as softening demand weighs on its core agricultural equipment business. The company’s shares closed more than 3% higher today.

For the quarter, the company reported adjusted earnings per share of $6.64, comfortably ahead of the $5.56 analyst consensus. Revenue also outperformed, rising to $12.76 billion versus expectations of $10.98 billion.

Despite the beat, shipment volumes declined across key segments, with Production & Precision Agriculture sales down 21% year-over-year. Still, Deere managed to preserve strong operating margins, showcasing disciplined cost control amid the downturn.

The company now expects full-year net income between $4.75 billion and $5.50 billion, adjusting the bottom of its prior $5.0–$5.5 billion range to reflect ongoing market headwinds.

• Deere & Company (NYSE:DE) reported an impressive EPS of $6.64, surpassing the estimated $5.56.
• Revenue for the quarter was $11.17 billion, exceeding expectations and demonstrating the company's market resilience.
• Despite facing challenges such as tariff impacts, DE adjusted its fiscal 2025 net income outlook of $4.75 billion to $5.5 billion, reflecting a proactive approach to navigating a dynamic environment.

Deere & Company, listed on the NYSE as DE, is a leading manufacturer of agricultural equipment. On May 15, 2025, DE reported impressive earnings per share (EPS) of $6.64, surpassing the estimated $5.56. This achievement highlights the company's ability to exceed market expectations, as it also reported revenues of approximately $11.17 billion, exceeding the estimated $10.95 billion.

Despite the positive earnings surprise of 16.9%, DE's EPS of $6.64 was lower than the $8.53 reported in the same quarter last year. This decline reflects the challenges faced by the company, including tariff impacts. However, DE has consistently outperformed consensus EPS estimates over the past four quarters, demonstrating its resilience in a dynamic market environment.

DE's revenue for the quarter ending April 2025 was $11.17 billion, surpassing the Zacks Consensus Estimate by 4.89%. However, this was a decline from the $13.61 billion recorded a year ago. The company's Production & Precision Agriculture segment saw a 21% drop in sales to $5.23 billion, while the Small Agriculture & Turf segment experienced a 6% decrease to $2.99 billion. The Construction & Forestry segment also faced a 23% decline, bringing in $2.95 billion.

In response to these challenges, DE adjusted its fiscal 2025 net income outlook, broadening its forecast to a range of $4.75 billion to $5.5 billion. This adjustment reflects the company's proactive approach to navigating a "dynamic environment," as highlighted by CEO John May. Despite these challenges, DE shares had risen approximately 18% prior to the announcement, indicating investor confidence in the company's long-term prospects.

DE's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 21.73, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 2.88, reflecting the value placed on each dollar of sales. Additionally, the enterprise value to sales ratio is around 4.11, showing the company's total valuation relative to its sales. These metrics, along with a debt-to-equity ratio of approximately 2.88 and a current ratio of around 2.20, highlight DE's financial stability and ability to cover short-term liabilities.

Deere & Co. (NYSE:DE) saw its shares fall more than 2% intra-day today after reporting a steep 50% decline in net income and weaker-than-expected sales for its fiscal first quarter, as the agricultural equipment giant grapples with inventory challenges and market uncertainty.

For the quarter, net income dropped to $869 million, down sharply from $1.75 billion a year earlier, though it still slightly exceeded analyst projections of $848.7 million. Revenue plunged 30% to $8.51 billion, while net sales, excluding finance and interest income, fell to $6.81 billion, well below the $7.67 billion consensus estimate.

Deere maintained its full-year 2025 net income forecast of $5 billion to $5.5 billion, despite mounting industry pressures. The company expects sales in its Production & Precision Agriculture division to decline by 15% to 20%, while small agriculture and turf revenue is projected to drop around 10%. Additionally, construction and forestry equipment sales are forecasted to shrink by 10% to 15%.

As the world’s largest farm equipment manufacturer, Deere is navigating a challenging macroeconomic environment, where lower demand and inventory adjustments are weighing on financial performance. While the company held firm on its full-year guidance, the sharp revenue decline and sector-wide headwinds have rattled investors, sending the stock lower.

Deere & Company, listed as NYSE:DE, is a leading player in the manufacturing of farm equipment. The company is known for its innovative agricultural machinery and solutions. Deere competes with other industry giants like CNH Industrial and AGCO Corporation. Despite facing challenges, Deere continues to be a significant force in the market.

On February 13, 2025, Deere reported earnings per share (EPS) of $3.19, surpassing the estimated $3.11. This marks a 1.92% surprise over the expected figures, as highlighted by Zacks. However, this is a decrease from the $6.23 per share reported in the same quarter last year. Despite this decline, Deere has consistently outperformed consensus EPS estimates over the past four quarters.

Deere's revenue for the quarter was approximately $8.51 billion, exceeding the estimated $7.70 billion. However, the actual revenue of $6.81 billion fell short of the Zacks Consensus Estimate by 11.51%. This is a significant drop compared to the $10.49 billion in revenues from the same period last year. Despite this, Deere has managed to exceed consensus revenue estimates three times in the last four quarters.

The company's net income for the first quarter was $869 million, translating to $3.19 per share. This is a significant decrease compared to the previous year's first-quarter net income of $1.7 billion, or $6.23 per share. Deere's worldwide net sales and revenues fell by 30% to $8.508 billion in the most recent quarter, with net sales specifically at $6.809 billion, down from $10.486 billion in 2024.

Deere's stock has experienced a significant decline following a sharp fall in earnings. The company is currently facing a challenging demand environment, resulting in considerably lower sales across its core operating segments. Despite these challenges, John C. May, the chairman and CEO, emphasized the company's ongoing efforts to optimize inventory levels in response to uncertain market conditions.

Deere & Co. (NYSE:DE) saw its shares fall more than 2% intra-day today after reporting a steep 50% decline in net income and weaker-than-expected sales for its fiscal first quarter, as the agricultural equipment giant grapples with inventory challenges and market uncertainty.

For the quarter, net income dropped to $869 million, down sharply from $1.75 billion a year earlier, though it still slightly exceeded analyst projections of $848.7 million. Revenue plunged 30% to $8.51 billion, while net sales, excluding finance and interest income, fell to $6.81 billion, well below the $7.67 billion consensus estimate.

Deere maintained its full-year 2025 net income forecast of $5 billion to $5.5 billion, despite mounting industry pressures. The company expects sales in its Production & Precision Agriculture division to decline by 15% to 20%, while small agriculture and turf revenue is projected to drop around 10%. Additionally, construction and forestry equipment sales are forecasted to shrink by 10% to 15%.

As the world’s largest farm equipment manufacturer, Deere is navigating a challenging macroeconomic environment, where lower demand and inventory adjustments are weighing on financial performance. While the company held firm on its full-year guidance, the sharp revenue decline and sector-wide headwinds have rattled investors, sending the stock lower.