Deere Reports $6.64 EPS, $12.76 Billion Sales; Net Income Down 22%, Stock Rises 4.9% Amid $500 Million Tariff Costs

Deere & Co. reported earnings of $6.64 per share, surpassing analyst estimates, with sales totaling $12.76 billion for the quarter ended April 27. Despite a 22% decline in net income for its fiscal second quarter, the results exceeded Bloomberg's expectations. The company faced approximately $100 million in tariff expenses during the quarter, with executives projecting these costs to reach just over $500 million for the full year amid ongoing global trade disruptions. Deere has lowered the low end of its annual profit outlook range due to near-term uncertainties. Nevertheless, the stock price rose 4.9% to $521.76, reaching a record high on optimism about an upturn in the farm economy. Farmers are benefiting from stable crop prices, reduced input costs, and government payments despite tariff challenges.