Deere & Company (DE) Stock: Q1 Earnings Drop Despite 13% Revenue Surge

TLDR

• Deere dips 1.26% despite 13% revenue growth
• Sales jump, profit falls, guidance rises
• Pre-market surges 6% after outlook boost
• Deere raises 2026 forecast on order strength
• Revenue climbs as earnings slip year over year

Deere & Company (DE) shares fell at the close even as the company posted higher revenue and raised its outlook. Deere ended the session at $593.27, down 1.26%, before pre-market trading jumped 6.19% to $629.74. The move followed first-quarter results that showed lower earnings but stronger sales and improved guidance.

Deere & Company, DE

Earnings Decline Despite Higher Sales

Deere reported net income of $656 million for the quarter ended February 1, 2026. That result equaled $2.42 per share and marked a decline from $869 million, or $3.19 per share, a year earlier. Although profit dropped, Deere increased worldwide net sales and revenues by 13% to $9.611 billion.

The company generated net sales of $8.001 billion during the quarter. In comparison, it recorded $6.809 billion in net sales during the same period last year. Revenue growth outpaced earnings performance, reflecting shifts in product mix and market conditions.

Deere faced ongoing pressure in the global large agriculture segment. However, it recorded improving demand in construction and small agriculture markets. As a result, total revenue expanded even as net income declined year over year.

Shipment Momentum and Order Strength

Deere shipped equipment ahead of its internal plan during the first quarter. At the same time, order books strengthened across several regions and customer segments. This combination supported revenue growth and improved operational visibility.

The company benefits from a broad customer base and diverse geographic exposure. These factors provide resilience when specific markets slow down. Deere balanced weakness in large agriculture with gains in other equipment categories.

Management stated that 2026 likely represents the bottom of the current cycle. The company pointed to recovery trends in construction and small agriculture as supportive factors. Deere positioned itself for potential growth acceleration beyond the current fiscal year.

Raised Guidance Signals Confidence

Deere increased its full-year net income guidance to a range of $4.5 billion to $5.0 billion. The updated outlook reflects stronger shipment trends and improved order activity. It also incorporates expectations for continued stabilization in key equipment markets.

Although quarterly earnings declined, the company maintained disciplined cost management. Revenue growth and operational execution helped offset industry headwinds. Deere demonstrated financial stability despite lower year-over-year profit.

Deere operates as a global manufacturer of agricultural, construction, and forestry equipment. The company has navigated multiple industry cycles over decades of operations. With higher guidance and stronger demand indicators, Deere entered the remainder of 2026 with measured confidence.

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