Farming and construction equipment giant Deere & Company (NYSE:DE) looks to extend its streak of beating analyst estimates when the company reports first-quarter financial results Thursday before market open.
Here are the earnings estimates and key items to watch.
Deere & Company Q1 Earnings Estimates
Analysts expect Deere & Company to report first-quarter revenue of $7.54 billion, down from $8.51 billion in last year's first quarter, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates for more than 15 consecutive quarters.
Analysts expect Deere & Company to report first-quarter earnings per share of $2.03, down from $3.19 in last year's first quarter.
The company has beaten analyst estimates for earnings per share in 13 straight quarters.
Key Items to Watch in Q1 Results
One of the many items investors and analysts will be watching will be the role that politics plays into Deere's results and guidance.
President Donald Trump recently revealed plans for a new $70 million Deere manufacturing facility in North Carolina.
"This is going to be the only excavator entirely made in the United States of America," Trump said at the time.
Deere later confirmed the plan and announced plans for a new distribution center in Indiana. The new plants could help the company expand its manufacturing presence in the United States and improve relations with the White House.
In December, Deere was called out by the president during the details of a $12 billion farm aid plan.
“We’re gonna say, ‘you’re gonna reduce the prices.’ They’re gonna have to reduce their prices. Because farming equipment has gotten too expensive,” Trump said at the time.
The call out of Deere could be a negative for its relations with the White House, which may have improved in the months since.
This could be good news for the company, but also comes as Deere has faced pressure from tariffs.
Deere CEO John May said tariffs would cause “ongoing margin pressures” going forward after fourth quarter results.
The company guided for net income to decline by 5.5% to 20% year-over-year due to higher costs and tariffs.
Deere warned that the tariff impact could be $1.2 billion in fiscal 2026. Along with that direct tariff expense estimate, Deere cautioned that the company’s new guidance includes “additional inflationary pressure also contemplated from the indirect impact of tariffs.”
The tariff impact may be more severe for Deere in the next fiscal year, with fiscal 2025 expected to have around $600 million in direct tariff-related expenses.
Analysts and investors may be watching Thursday's results to see what comments are made about tariffs and the boost to American manufacturing, which may improve White House relations.
The company saw multiple segments post year-over-year sales improvements in the fourth quarter, including construction and forestry sales up 27% year-over-year. The company's largest segment of production and precision agriculture sales was up 10% year-over-year in the quarter.
May predicted that 2026 could mark the bottom for the large agriculture sector after the fourth quarter results.
The company's results could show the impact of tariffs ahead of a highly anticipated Supreme Court ruling.
The results could also provide an overall outlook on the agriculture and machinery sectors. Deere stock is the top holding in the VanEck Agribusiness ETF (NYSE:MOO) at 8.6% of assets.
Deere Stock Price
Deere shares are down 1.4% to $592.60 on Thursday versus a 52-week trading range of $404.42 to $626.25. Deere stock is up 27.3% year-to-date in 2026 and up 18.2% over the last year.
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