DEERE & CODE
DEERE & CO Financial Overview 2021–2025
Deere & Company is battling a severe cyclical contraction, with diluted EPS round-tripping from $18.99 in FY2021 to a peak of $34.63 in FY2023, before falling back to $18.50 at the close of FY2025. This recent deterioration reflects a confluence of elevated interest rates, excess used inventory, and $600 million in direct costs from new import tariffs. Consequently, the core investment thesis has shifted from growth execution to defensive margin management, as the company navigates double-digit volume declines across its agricultural and construction markets while attempting to preserve structural profitability.
The breadth of the downturn is visible in the first nine months of FY2025, where net sales dropped 18% to $33.3 billion amid softening global demand. Profitability compressed even faster, as third-quarter net income plunged 26% to $1.29 billion and operating profit in the key Production and Precision Agriculture segment collapsed 50% due to lower U.S. shipment volumes. Despite these headwinds, management maintained a robust balance sheet with $9.99 billion in cash and equivalents as of July 2025 and returned capital aggressively earlier in the cycle, repurchasing $4.0 billion of stock in FY2024. At the end of FY2025, the market valued these trough earnings at a premium 25.0x multiple, resulting in a $124.8 billion market cap.
Recent Developments (Q3 and Q4 2025)
Deere faced intensifying segment-level pressure in Q3 2025, with net sales declining 9% to $12.0 billion. While the Financial Services unit provided a defensive buffer—posting a 34% jump in quarterly net income to $205 million—industrial margins eroded, led by a 47% plunge in Construction & Forestry operating profit. Management’s initial outlook for FY2026 anticipates continued sluggishness in large North American agriculture, though the small agriculture and turf segments may see modest improvement.
Significant leadership turnover occurred late in the cycle, including the resignation of CFO Joshua Jepsen and the appointment of Cargill CEO Brian Sikes to the board. As of December 2025, the stock traded at a rich 25.7x P/E. Bulls view this premium and the strategic board expansion as a vote of confidence in the next growth cycle, while bears argue the valuation is disconnected from the reality of falling demand and legal risks involving the FTC.
What to watch: Strategic shifts under the interim CFO; progression of the right-to-repair antitrust litigation.
Rev
$45.68B
FY2025
NI
$5.03B
FY2025
EPS
$18.55
FY2025
OCF
$7.46B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
DEERE & CO 8-K Report, Financial Results (Feb 19, 2026)
Deere & Company (DE) filed an 8-K on February 19, 2026, reporting its financial results for the first quarter of fiscal year 2026. The filing primarily serves to furnish the press release announcing these results (Exhibit 99.1) and a related investor presentation (Exhibit 99.2). Investors should refer to these attached documents for detailed financial performance, operational highlights, and forward-looking guidance for the first quarter and the fiscal year ahead. The 8-K itself does not contain the detailed financial figures but directs stakeholders to the supplementary materials for comprehensive insights into the company's performance and strategic outlook.
DEERE & CO 8-K Report, Executive Changes (Jan 22, 2026)
Deere & Company (DE) announced a significant leadership change in its finance department via an 8-K filing on January 22, 2026. Joshua A. Jepsen has resigned from his position as Senior Vice President and Chief Financial Officer, with his departure effective February 19, 2026. The company has stated that Mr. Jepsen's decision is not linked to any financial or accounting improprieties or disputes regarding the company's operations or policies, providing some reassurance to investors regarding the underlying financial health. In response to this transition, Deere & Company has appointed Ryan D. Campbell as the interim Chief Financial Officer, effective also on February 19, 2026. Mr. Campbell brings considerable experience to this role, having previously served as the company's CFO from March 2019 to May 2022, and most recently as President of Worldwide Construction & Forestry and Power Systems since May 2022. The company has indicated that a search for a permanent CFO replacement is underway, encompassing both internal and external candidates.
DEERE & CO 8-K Report, Executive Changes (Dec 4, 2025)
Deere & Company (DE) has announced a significant change in its Board of Directors with the election of Brian Sikes, the Chair, President, and CEO of Cargill, Inc., effective December 4, 2025. Mr. Sikes' appointment expands the Board to 11 members and includes his addition to the Compensation and Corporate Governance committees. This move brings a seasoned leader from a major global agricultural and industrial player to Deere's strategic oversight, which could offer valuable perspectives. The company also disclosed that Raj Kalathur intends to retire as President of John Deere Financial and Chief Information Officer, effective January 31, 2026, signaling a leadership transition in key operational areas.
DEERE & CO 8-K Report, Financial Results (Nov 26, 2025)
Deere & Company (DE) has filed an 8-K Current Report on November 26, 2025, to announce its financial results for the fourth quarter of fiscal year 2025. The report primarily serves to furnish the press release detailing these results (Exhibit 99.1) and a related investor presentation (Exhibit 99.2) that was made available in conjunction with their earnings call. While the 8-K itself does not contain the detailed financial figures, it directs investors to the furnished exhibits for a comprehensive overview of the company's operational performance and financial condition for the concluded quarter. Investors seeking to understand Deere's latest financial standing and outlook should refer to the press release and presentation materials for specific revenue, profit, and segment performance data.
DEERE & CO 8-K Report, Corporate Update (Oct 9, 2025)
Deere & Company (DE) has announced through a subsidiary, Deere Funding Canada Corporation, the successful issuance of $500 million in 4.150% senior unsecured notes due October 9, 2030. These notes are fully and unconditionally guaranteed by Deere & Company. The offering was conducted through a Terms Agreement with several leading underwriters, including Goldman Sachs & Co. LLC and MUFG Securities Americas Inc. The issuance of these notes is a standard financing activity to support the company's ongoing operations and strategic initiatives. From an investor's perspective, this debt issuance signals continued access to capital markets for Deere. The senior unsecured nature of the notes means they rank equally with other unsecured debt of the parent company, which is a common structure for corporate debt. The 4.150% coupon rate reflects prevailing market conditions and the creditworthiness of Deere & Company. Investors should note that while the notes are guaranteed by the parent, they are an unsecured obligation, meaning repayment relies on the overall financial health of Deere & Company. The filing also details redemption provisions and incorporates by reference relevant prospectus supplements and legal opinions.
View all 8-K filings →