Deere & Company (NYSE: DE) saw its shares drop more than 5% in pre-market trading on Wednesday after reporting Q3 CY2025 results that included a reduced full-year earnings outlook, despite beating revenue expectations. The company posted revenue of $12.39 billion, up 33.6% year-over-year and above estimates of $11.62 billion, with GAAP EPS of $3.93 surpassing consensus by 2.5%. However, EPS declined from $4.55 a year ago, reflecting ongoing margin pressures.
Deere cut its full-year earnings guidance to a range of $4.00–$4.75 billion, well below analyst forecasts near $5.00 billion, citing persistent challenges from tariffs, cost pressures, and weak demand in large agriculture markets. Management indicated that 2026 could mark the bottom of the large agriculture cycle, with net income projected at $4.375 billion for the current fiscal year.
Despite the downturn, Deere is aggressively integrating artificial intelligence across its operations, positioning it for future growth. The company outlined six key AI initiatives set to drive long-term value: precision agriculture tools like 'See & Spray' that reduce herbicide usage by up to two-thirds, autonomous equipment for reliable operation in low-connectivity areas, satellite connectivity to link 1.5 million machines by 2026, predictive maintenance using digital twins, lifecycle optimization for higher yields, and a responsible AI framework via DeereAI to mitigate risks.
Jahmy Hindman, Deere's CTO, emphasized that AI helps farmers 'make every seed count, every drop count, and every bushel count,' enhancing profitability and sustainability. With Deere's machinery impacting about one-third of the Earth's surface annually, these AI advancements could address global food demand and aging farmer demographics, supporting the stock's recovery over time.
