Deere (DE) investors will have mixed views on fiscal Q3, but expectations were low, and an earnings beat and early order messaging were less negative than expected, UBS Securities said in a note Thursday.

Early order commentary appears to support Deere's view that 2026 will be the bottom of the agriculture cycle, suggesting early order trends are not down, according to the note.

However, the fiscal Q4 net income and each segment's operating income guidance fell short of consensus, with Production & Precision Agriculture most below consensus, the note added.

While fiscal Q3 was a beat even excluding tariffs, the brokerage believes the debate will center on the fiscal Q4 exit rate for segment profit and net tariff exposure, and the implications for fiscal 2027. UBS said consensus will likely come down next year, but that appears to be expected by investors.

The brokerage expects early order message of flat to slightly higher for planters and sprayers to support low- to mid-single digit growth in Production & Precision Agriculture in 2027.

UBS kept a buy rating on Deere with a price target of $732.

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