John Deere reported a string of quarterly beats over the past two releases, driven by stronger-than-expected demand in its agriculture and construction segments. Equipment order backlogs rose by high-single digits, supporting positive revenue surprises and bolstering confidence in its core markets.

For the period ending March, analysts project net income to drop nearly 40% year-over-year as farmers delay purchases amid softer commodity prices and tighter credit conditions. At the same time, escalating raw-material and freight costs are expected to compress gross margins by more than 200 basis points.

John Deere is set to release its first-quarter results later this month, with investors focused on order trends, margin recovery initiatives, and guidance for the back half of the year. Market participants will watch management’s commentary on farm cash flows, dealer inventories, and planned cost controls for signs of stabilization.