Deere Stock Plummets Amid Q1 Sales Decline: What’s Next for 2025?

Essential Insights

• Deere & Company’s shares declined significantly following disappointing Q1 sales results.
• Sales dropped 30% compared to last year, yet earnings per share slightly exceeded analyst predictions.
• Deere anticipates a 10% to 20% sales decrease across its agriculture, precision farming, and construction divisions in 2025.

Deere & Company (DE), the renowned manufacturer of John Deere tractors and equipment, experienced a notable drop in stock value after reporting first-quarter sales for fiscal 2025 that missed analyst expectations. Sales totaled $8.51 billion, down 30% from the prior year and approximately $500 million below consensus estimates. Despite this, earnings per share reached $3.19, surpassing projections by 8 cents, although down from $6.23 in the previous year.

The company reaffirmed its full-year profit guidance between $5 billion and $5.5 billion, aligning closely with analysts’ current expectations of $5.27 billion.

Deere Projects Continued Sales Decline Amid Industry Slowdown

Looking ahead, Deere forecasts a challenging 2025 with expected sales declines of 10% in the agriculture and turf segment, and 10% to 20% reductions in precision agriculture and construction and forestry divisions. The outlook remains uncertain due to potential impacts from U.S. import tariffs and retaliatory measures by other countries.

Following the earnings announcement, Deere’s stock fell over 2%, after gaining approximately 22% over the past year.

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