Deere Q1 sales beat; sees recovery in construction and small agriculture demand

Overview

• Agricultural machinery maker's Q1 net sales rose 13%, beating analyst expectations

• Net income for Q1 decreased 25% yr/yr to $656 mln

Outlook

• Deere forecasts fiscal 2026 net income between $4.5 bln and $5.0 bln

• Company plans to launch innovative products across all business segments

• Deere sees recovery in construction and small agriculture demand

Result Drivers

• CONSTRUCTION & FORESTRY - Sales increased due to higher shipment volumes and favorable foreign currency translation

• SMALL AGRICULTURE & TURF - Sales increased due to higher shipment volumes and favorable foreign currency translation

• PRODUCTION & PRECISION AGRICULTURE - Operating profit decreased due to higher tariffs and warranty expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Deere & Co is $521.00, about 12.2% below its February 18 closing price of $593.27

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 23 three months ago

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