By Connor Hart

Deere logged higher sales in its fiscal fourth quarter as agricultural trends began to improve, but the company issued a downbeat forecast for the current year and said tariffs and uncertainty are expected to continue to weigh on earnings.

The world's largest seller of farm equipment on Wednesday posted a profit of $1.07 billion for its three months ended Nov. 2, down from $1.25 billion in last year's comparable quarter. On a per-share basis, earnings were $3.93, ahead of the $3.84 that analysts polled by FactSet had expected.

Net sales jumped 14% to $10.58 billion and topped the $9.83 billion that Wall Street modeled. Including revenues, the company's top line came in at $12.39 billion.

Sales climbed 10% across Deere's production and precision-agriculture business, boosted by increased shipment volumes and higher-than-expected pricing. Small-agriculture and turf sales rose 7%, which the company said was largely attributable to higher shipment volumes.

Construction and forestry sales jumped 27%, also attributed to higher shipment volumes.

Chief Executive John May said the company is benefiting from the structural improvements it has made to its business, despite this year's challenges and uncertainties.

"Looking ahead, we believe 2026 will mark the bottom of the large ag cycle," he said. "While ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain, our commitment to inventory management and cost control, coupled with expected growth in small agriculture and turf, and construction and forestry, positions us to effectively manage the business and seize emerging opportunities as market conditions begin to recover."

For the current fiscal year, Deere expects net income between $4 billion and $4.75 billion. Analysts are looking for $5.11 billion.

Shares fell 4.8% to $474 in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 26, 2025 06:36 ET (11:36 GMT)

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