Deere’s Q1 Revenue Forecast Falls 11% to $7.54B, Tariff Costs Could Hit $1.2B
Deere, MOO’s largest 8.6% holding, will report Q1 revenue of $7.54B (versus $8.51B) and EPS of $2.03 (versus $3.19), extending a 15-quarter revenue and 13-quarter EPS beat streak. It warned of $1.2B in tariffs for fiscal 2026 and guided income down with costs and calls to cut prices pressuring margins.
1. Q1 Estimates and Beat Streak
Deere is forecast to generate $7.54 billion in first-quarter revenue, down from $8.51 billion a year ago, and $2.03 in EPS versus $3.19. The company has surpassed revenue estimates for 15 quarters and EPS estimates for 13 consecutive quarters, underscoring its consistency in a challenging environment.
2. Tariff Impact and Net Income Guidance
Management flagged $1.2 billion in direct tariff-related expenses for fiscal 2026 and guided net income to decline by up to 20% year-over-year. Higher material costs and indirect tariff impacts have prompted a cautious profitability outlook for the year ahead.
3. Political Pressure and Manufacturing Expansion
Recent calls to reduce equipment prices have intensified political scrutiny, even as Deere plans a new $70 million U.S. manufacturing plant and an Indiana distribution center. These moves aim to bolster domestic production and mend relations following pressure over pricing and tariff headwinds.