Deere Shares Rise After Q2 Beat Despite Steep Sales Declines Across Segments

Deere & Co. DE shares are trading higher after the company posted better-than-expected second-quarter 2025 results.

Quarterly net sales and revenue fell 16% year-over-year to $12.76 billion, topping the consensus estimate of $10.79 billion.

Net sales were $11.17 billion for the quarter and $17.98 billion for the first half, down from $13.61 billion and $24.10 billion a year ago. Deere’s EPS was $6.64, down from $8.23 in the prior year, beating the consensus of $5.59.

Production & Precision Agriculture net sales declined 21% YoY to $5.23 billion, Small Agriculture & Turf net sales fell 6.5% to $2.994 billion, and Construction & Forestry revenue declined 23% to $2.947 billion due to lower shipment volumes.

Related: Deere Gears Up For Q2 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

Financial services revenues declined 1% year over year to $1.385 billion. Financial services net income was flat at $161 million, as weaker financing spreads and higher credit loss provisions were offset by lower expenses and derivative adjustments.

Total operating profit fell 26% YoY to $2.308 billion, and margin contracted to 18.1% from 20.3% YoY.

Segment operating margins were mixed: Production & Precision Agriculture fell to 22% from 25.1% year over year, Construction & Forestry dropped to 12.9% from 17.4%, while Small Agriculture & Turf rose to 19.2% from 17.9%.

As of April 27, Deere held $7.991 billion in cash and equivalents. DE’s net cash from operating activities for the six months totaled $568 million, compared to $944 million a year ago.

John Deere Chairman and CEO John May emphasized the company’s long-term vision despite market headwinds. He stated, “Despite the near-term market challenges, we remain confident in the future,” reaffirming the company’s commitment to delivering value through continued investment in advanced products, solutions, and manufacturing capabilities.

Looking ahead, Deere plans to invest significantly in its core U.S. market over the next decade to drive innovation and maintain cost competitiveness globally.

Guidance 2025: Deere expects net income to be between $4.75 billion to $5.50 billion (prior $5.0 billion and $5.5 billion).

Production & Precision net sales expected to decline 15–20%, Small Ag & Turf sales seen down 10–15%, and Construction & Forestry sales projected to drop 10–15%.

Financial Services’ net income forecast is around $750 million.

Price Action: DE shares traded higher by 4.7% at $521.19 at last check on Thursday.

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