Deere Set to Report Q1 Earnings: Here's What to Expect for the Stock

Deere & Company DE is scheduled to report first-quarter fiscal 2026 results on Feb. 19 before the opening bell.

The Zacks Consensus Estimate for Deere’s earnings has moved down 4.5% over the past 60 days to $1.92 per share. The consensus mark implies a 39.8% plunge from the year-ago actual. The consensus estimate for revenues is pegged at $7.60 billion, indicating a 11.7% year-over-year increase.

DE’s Solid Earnings Surprise History

Deere’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 5.2%.

What the Zacks Model Predicts for Deere

Our model does not predict an earnings beat for DE this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.

Earnings ESP: The Earnings ESP for Deere is +3.26%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: Deere currently has a Zacks Rank #4 (Sell).

Factors Likely to Have Shaped DE’s Q1 Performance

Deere has been facing challenges due to weak farmer spending amid low commodity prices. In the wake of challenging conditions in the global agricultural and construction sectors, DE has been aligning its production with demand levels. This is likely to have weighed on the company’s fiscal first-quarter performance.

High production expenses, selling, administrative and general expenses, and research and development expenses are also likely to have impacted the company’s margin in the quarter.

Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal fourth quarter.

Projections for Deere’s Segments in Q1

The Zacks Consensus Estimate for the Production & Precision Agriculture segment’s revenues is pegged at $3.05 billion for the fiscal first quarter, suggesting a year-over-year decrease of 0.6%. Gains from price realization are likely to have been offset by escalated production expenses and lower shipment volumes. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $159 million, indicating an 53% decrease from the prior-year quarter’s reported figure.

The consensus estimate for the Small Agriculture & Turf segment’s revenues is pegged at $2.16 billion for the fiscal first quarter, indicating an 23.7% increase from the prior-year quarter’s actual. The segment’s operating profit is estimated at $185 million, suggesting 49.2% year-over-year growth. 

The Construction & Forestry segment’s sales are pegged at $2.37 billion for the fiscal first quarter, suggesting a 18.7% rise from the prior-year quarter’s reported number. The segment’s operating profit is pegged at $84 million compared to the prior year’s reported figure of $65 million.

The estimate for the Financial Services segment’s revenues is pegged at $1.38 billion for the fiscal first quarter, indicating a 5.9% dip from the year-ago quarter’s actual. The projection for the segment’s operating profit is $238 million. The segment reported operating profit of $266 million in the prior-year quarter.

DE Stock’s Price Performance

Shares of the company have gained 27.3% in the past year compared with the industry’s 24.9% growth.

A Look at Deere’s Peer Performances

Lindsay Corporation LNN delivered earnings per share of $1.54 in first-quarter fiscal 2026, beating the Zacks Consensus Estimate of $1.46. Lindsay’s bottom line decreased 2% year over year.

Lindsay generated revenues of $156 million, down from $166 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $168 million.

AGCO Corp. AGCO delivered an adjusted EPS of $2.17 in fourth-quarter 2025 compared with the prior-year quarter’s $1.97. The reported figure topped the Zacks Consensus Estimate of $1.85.

AGCO revenues increased 1.1% year over year to $2.92 billion in the December-end quarter. The top line beat the Zacks Consensus Estimate of $2.68 billion. Excluding the favorable currency-translation impacts of 6.4%, AGCO’s revenues fell 5.3% year over year.

Stock That Warrants a Look

Tenaris S.A. TS, slated to release fourth-quarter 2025 results on Feb. 18, has an Earnings ESP of +12.86% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Tenaris’ fourth-quarter 2025 earnings is pegged at 76 cents per share, suggesting a year-over-year dip of 19%. TS has a trailing four-quarter average surprise of 18.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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