DEERE & CODE
DEERE & CO Financial Overview 2021–2025
Updated Jul 10, 2026A staggering $600 million in direct import tariffs battered Deere's profitability in FY2025, intensifying the pain of a cyclical downturn across the agricultural and construction sectors. The company is transitioning from a period of demand-driven expansion into a defensive phase dictated by high interest rates, elevated used equipment inventories, and softening farmer liquidity.
Earnings per share captures this boom-and-bust cycle, soaring from $18.99 in FY2021 to a peak of $34.63 in FY2023 before compressing back to $18.50 in FY2025. During its peak growth phase, net sales surged by 19.4% to reach $52.58 billion in FY2022. However, the operational environment deteriorated sharply as agricultural fundamentals moderated. By Q1 2025, total net sales plummeted 30% year-over-year to $8.51 billion. To protect margins, management executed strategic cost reductions, including an employee-separation program in FY2024 designed to generate $230 million in annual pretax savings.
Despite the fundamental contraction and an ongoing FTC antitrust lawsuit regarding repair services, the market continues to price Deere at a premium. At the close of FY2025, the stock traded at $461.63, commanding a $124.8 billion market capitalization. This translated to a valuation of 25.0x earnings for FY2025, reflecting underlying investor confidence in the company's "Smart Industrial" technology investments and its balance sheet, which held $9.99 billion in cash and marketable securities by Q3 2025.
Recent Developments (Q1 and Q2 2026)
Deere demonstrated diverging financial performance through the first half of fiscal 2026. Net sales rose 13% to $9.61 billion in Q1 2026 and grew 5% to $13.37 billion in Q2 2026. Profitability contracted. Net income for Q1 2026 fell 25% to $656 million following a $361 million pretax tariff hit. By Q2 2026, the Production & Precision Agriculture segment saw operating profit plunge 39% amid elevated production costs. Deere also executed a chief financial officer transition, appointing T. Brent Norwood on May 1, 2026.
Bulls point to non-agricultural strength, with Construction & Forestry operating profits surging 48% in Q2 2026. Bears highlight margin degradation in large agriculture equipment alongside rising inventory levels, which grew by $782 million year-to-date. Trading at 29.1x earnings as of May 28, 2026, the stock appears richly valued given the profit contraction in its primary segment.
What to watch: margin compression in the Production & Precision Agriculture segment; the strategic impact of new executive performance stock targets.
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, Executive Changes (Jun 1, 2026)
This 8-K filing from Deere & Company (DE) announces a significant board-level change. Dmitri Stockton, a director who has served for nearly 12 years, has informed the Board of his decision not to stand for re-election at the 2027 annual meeting of stockholders. Investors should note that this decision is amicable and not due to any disagreements with the company's operations, policies, or practices. While Mr. Stockton will continue to serve his current term through the 2027 annual meeting, this announcement signals the upcoming departure of a long-standing board member. The Board expressed its gratitude for his extensive service. Investors may want to monitor the company's succession planning for its board and assess the impact of this transition on future board composition and strategic oversight.
DEERE & CO 8-K Report, Financial Results (May 21, 2026)
Deere & Company (DE) filed an 8-K on May 21, 2026, primarily to report its financial results for the second quarter of fiscal year 2026. While the 8-K itself does not contain the detailed financial figures, it references an accompanying press release (Exhibit 99.1) and an investor presentation (Exhibit 99.2) which provide the specific operational and financial condition outcomes for the quarter. Investors should refer to these furnished exhibits for the substantive information regarding the company's performance, profitability, and outlook.
DEERE & CO 8-K Report, Executive Changes (May 1, 2026)
Deere & Company (DE) has announced a key leadership change, appointing T. Brent Norwood as its new Senior Vice President and Chief Financial Officer (CFO), effective May 1, 2026. This appointment marks a significant step in the company's financial leadership, with Mr. Norwood bringing extensive experience from within Deere, including his recent role as Vice President & Finance Director for Construction & Forestry and Power Systems. His background also includes valuable experience in investor relations and corporate development, as well as prior roles in equity research and portfolio analysis, which should provide a strong foundation for his new responsibilities. Mr. Norwood's compensation package includes an annualized salary of $925,000, a target short-term incentive of 100% of base salary, and a one-time award of performance-based and time-based restricted stock units (PSUs). The company has confirmed no family relationships or disclosable related-party transactions involving Mr. Norwood. This transition sees the previous acting CFO, Ryan D. Campbell, returning to his leadership roles in Worldwide Construction & Forestry and Power Systems, ensuring continuity in those critical business segments.
DEERE & CO 8-K Report, Executive Changes (Mar 16, 2026)
Deere & Company (DE) announced on March 16, 2026, that its Board of Directors, upon the recommendation of the Compensation Committee, has approved one-time grants of performance-based restricted stock units (PSUs) to its named executive officers and other senior officers. These awards, to be granted under the John Deere 2020 Equity and Incentive Plan, are designed to incentivize long-term business results aligned with the company's refined Leap Ambitions and to promote executive retention. The PSUs are contingent on achieving specific Shareholder Value Added (SVA) targets over a five-fiscal year performance period, running from November 3, 2025, to October 27, 2030. The performance metrics are structured to account for the cyclical nature of Deere's business, with annual SVA targets set as a percentage of estimated mid-cycle net sales. The payout structure is performance-dependent, ranging from zero to 175% of the target number of PSUs based on achieving between 90% and 125% (or more) of the applicable annual SVA target. The final award will be based on an average performance percentage over the five-year period. SVA itself is defined as operating profit less the product of average assets and cost of capital for the company's equipment operations segments, aiming to measure earnings above the cost of capital.
DEERE & CO 8-K Report, Shareholder Vote Results (Feb 27, 2026)
Deere & Company (DE) filed an 8-K on February 27, 2026, detailing the results of its annual shareholder meeting held on February 25, 2026. The primary purpose of this filing is to inform investors about the outcomes of various voting matters presented to shareholders. All director nominees were overwhelmingly elected, indicating strong shareholder confidence in the current board. Additionally, shareholders provided advisory approval for the executive compensation plan and ratified Deloitte & Touche LLP as the company's independent auditor for fiscal year 2026. The filing also reported the outcomes of several shareholder proposals. Notably, proposals concerning a report on the ROI of emission reduction goals, the right for shareholders to act by written consent, and a report on faith-based business resource groups all failed to gain majority shareholder approval. These results suggest that while shareholders support the company's leadership and financial oversight, they did not endorse these specific strategic or governance-related initiatives at this time.
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