Core Viewpoint - Deere & Company reported better-than-expected earnings for its first quarter, with EPS of $2.42 surpassing the analyst estimate of $2.06, and worldwide net sales increasing by 13% to $9.611 billion, exceeding the $7.686 billion estimate [1] Group 1: Earnings Performance - The company's EPS of $2.42 beat the analyst estimate of $2.06 [1] - Worldwide net sales and revenues increased by 13% to $9.611 billion, surpassing the estimate of $7.686 billion [1] Group 2: Future Guidance - Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion [2] - The company projected Production & Precision Agriculture net sales to decline by 5% to 10%, while Small Agriculture & Turf net sales are expected to rise by about 15%, and Construction & Forestry net sales are also projected to increase by about 15% [2] - Financial Services net income is projected to be approximately $840 million [2] Group 3: Market Reaction - Following the earnings announcement, Deere shares fell by 0.7% to trade at $657.34 [2] - Analysts adjusted their price targets on Deere after the earnings report [2]

Core Insights - Deere & Company reported first-quarter earnings that exceeded expectations, with an EPS of $2.42 compared to the analyst estimate of $2.06 [1] - Worldwide net sales and revenues increased by 13% to $9.611 billion, surpassing the estimated $7.686 billion [1] - The company expressed optimism about recovery in demand within construction and small agriculture segments despite challenges in the global large agriculture industry [1] Financial Guidance - Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion [2] - The company projected a decline in Production & Precision Agriculture net sales by 5% to 10%, while Small Agriculture & Turf and Construction & Forestry net sales are expected to increase by about 15% [2] - Financial Services net income is projected to be approximately $840 million [2] Market Reaction - Following the earnings announcement, Deere shares fell by 0.7%, trading at $657.34 [2] - Analysts adjusted their price targets on Deere in response to the earnings report [2]

Core Insights - Deere & Company reported Q1 fiscal 2026 earnings of $2.42 per share, exceeding the Zacks Consensus Estimate of $1.92, although this represents a 24% decline from the previous year [1] - Net sales from equipment operations reached $8 billion, marking a 17.5% increase year-over-year and surpassing the Zacks Consensus Estimate of $7.6 billion [1] - Total net sales, including financial services, amounted to $9.61 billion, up 13% from the prior year, driven by higher shipment volumes despite increased tariffs [2] Segment Performance - The Production & Precision Agriculture segment saw sales grow 3% year-over-year to $3.16 billion, aided by favorable foreign currency translation, while Small Agriculture & Turf sales surged 24% [3] - Construction & Forestry sales increased by 34% year-over-year to $2.67 billion [3] - The cost of sales rose 24.7% from the prior year to $6.28 billion, leading to a 2.9% decline in total gross profit to $1.72 billion [3] 2026 Guidance - Deere expects net income for fiscal 2026 to be between $4.5 billion and $5 billion, an increase from the previous estimate of $4.00-$4.75 billion [4] - Net sales for the Production & Precision Agriculture segment are projected to decrease by 5-10% year-over-year, while sales in Small Agriculture & Turf and Construction & Forestry are expected to rise about 15% each, up from a previous forecast of 10% [5] Market Reaction - Following the earnings report, Deere's shares rose approximately 11.6% on February 19, 2026 [2] - CEO John May expressed optimism regarding the recovery in demand within construction and small agriculture segments, despite anticipating a pre-tax tariff impact of around $1.2 billion for fiscal 2026 [6] ETFs Performance - Several ETFs with significant holdings in Deere stock also experienced gains on February 19, 2026, including: - iShares MSCI Agriculture Producers ETF (VEGI) - Up 3.5% [8] - Global X AgTech & Food Innovation ETF (KROP) - Up 2.8% [9] - First Trust Indxx Global Agriculture ETF (FTAG) - Up 1.1% [10]

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that humanoid robots could create a market worth $250 trillion by 2040, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is believed to be redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8]

Core Viewpoint - Deere & Company reported strong first-quarter earnings and revenue, exceeding analyst expectations and raising its full-year profit forecast, leading to a significant increase in share price [1]. Financial Performance - The company achieved a first-quarter net income of $656 million, or $2.42 per share, surpassing analyst estimates of $2.02 per share [2]. - Revenue increased by 13% year over year to $9.61 billion, significantly above the consensus estimate of $7.59 billion [2]. - Despite the revenue growth, net income declined by 25% compared to $869 million, or $3.19 per share, reported in the same quarter a year earlier [2]. - Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion [2]. Segment Performance - The Small Agriculture & Turf segment saw sales increase by 24% to $2.17 billion, with operating profit surging by 58% to $196 million [3]. - The Construction & Forestry segment also experienced strong growth, with sales rising by 34% to $2.67 billion and operating profit more than doubling to $137 million [3].

Core Viewpoint - U.S. equity markets faced volatility as resilient labor market data contrasted with a cautious outlook from Walmart, leading to concerns over consumer spending and geopolitical tensions impacting risk appetite [1]. Major Market Indexes Performance Recap - Major benchmarks ended in negative territory, with the S&P 500 declining 0.28% to 6,861.89, the Nasdaq Composite slipping 0.31% to 22,682.73, and the Dow Jones Industrial Average falling 267 points, or 0.54%, to close at 49,395.16 [2]. Small-Cap vs. Large-Cap Performance - The small-cap Russell 2000 managed a late-day recovery, finishing up 0.25%, indicating that smaller domestic-focused firms found support despite headwinds faced by larger retail and tech companies [3]. Economic Data Insights - Initial jobless claims fell to 206,000, significantly lower than the projected 223,000, marking the lowest level since early January, complicating the Federal Reserve's interest rate cut path [4]. - The U.S. trade deficit unexpectedly widened to -$70.3 billion in December, exceeding the forecasted -$56 billion, while the Philadelphia Fed Manufacturing Index rose to 16.3 in February from 12.6 the previous month, indicating strength in the industrial sector [5]. Corporate News and Stock Movements - Walmart reported better-than-expected fourth-quarter earnings and revenue but saw its stock fall 1.4% due to a disappointing profit forecast, overshadowing a $30 billion share buyback announcement [6]. - Deere & Company shares surged 11.6% after reporting higher-than-expected quarterly profits and raising full-year net income guidance to $4.5 billion to $5.0 billion [7]. - Etsy's stock increased by 21.2% following a significant earnings beat, while Booking Holdings dropped 7.1% amid competition concerns [8]. - Other notable stock movements included Occidental Petroleum rising 9.4%, Blue Owl Capital falling 5.9%, Robinhood Markets tumbling 11.3%, and Nvidia edging higher due to a partnership with Meta Platforms [8]. Upcoming Market Events - Investors are focused on upcoming corporate reports from Newmont Corp. and Consolidated Edison, as well as monitoring Live Nation Entertainment, Texas Roadhouse, and Sprouts Farmers Market for insights into consumer spending [9]. - Nvidia's earnings report is highly anticipated on February 25th, with geopolitical developments in Iran supporting oil prices, which rose 2.6% to $66.71 per barrel [10].

Core Insights - Deere & Co. shares have surged over 40% since the beginning of the year, reaching a new high after reporting earnings that exceeded analysts' expectations [1][1][1] Financial Performance - Deere reported earnings per share of $2.42 and revenue of $9.61 billion, reflecting a 13% year-over-year increase [1][1][1] - The company expects net income for the full year to be between $4.5 billion and $5 billion, an increase from the previous range of $4 billion to $4.75 billion [1][1][1] Market Drivers - The positive results were attributed to increased infrastructure spending and investments in AI data centers [1][1][1] - CEO John May noted a recovery in demand within the construction and small agriculture segments, despite ongoing challenges in the global large agriculture industry [1][1][1] Future Outlook - Deere anticipates that 2023 could mark the bottom of the current cycle, with expectations for stronger sales growth in 2027 and beyond [1][1][1] - Sales from the Production & Precision Agriculture segment are projected to decline by 5% to 10%, while small agriculture and construction sales are expected to rise by approximately 15% [1][1][1]

Core Viewpoint - The company believes that fiscal 2026 represents the bottom of the current cycle, with signs of stabilization in North American large agriculture and strong growth in construction markets [1] Performance Highlights - The performance beat was mainly driven by higher-than-expected shipment volumes and operational efficiencies, which offset significant incremental tariff expenses of approximately $1.2 billion [1] - Strategic underproduction in fiscal 2025 effectively cleared the trade ladder, resulting in a decline of over 40% in late-model used tractor inventory from its 2025 peak, thus facilitating new machine replacement demand [1] Sector Performance - The Construction & Forestry segment outperformed due to resilient infrastructure spending, growth in data centers, and a 50% sequential increase in order banks, providing visibility through year-end [1] - The Small Ag & Turf segment experienced a growth of 24%, reflecting a normalization in the turf sector and strong demand from dairy and livestock producers, supported by robust beef prices [1] - South American performance is under pressure from high interest rates and currency volatility, leading to proactive production cuts in Brazilian combines to manage field inventory [1] Strategic Initiatives - The acquisition of Tenna aligns with a 'machine, task, and job site' strategy, moving beyond hardware to offer brand-agnostic digital fleet optimization for contractors [1]

Welcome back to Market on Close. Shares of Deer have rallied to a new record high after the company topped earnings estimates earlier today. Profits in the company's construction business more than doubled and it raised its net income guidance to 4.5% billion to5 billion. Deer CEO said, quote, "These positive developments reinforce our belief that 2026 represents the bottom of the current cycle. shares trading up more than 11% on that report which means it's time for options corner Rick Ducat our lead marke ...

Should You Run With Deere After Big Beat-and-Raise Quarter? - 24/7 Wall St.[S&P 5006,842.20 -0.56%][Dow Jones49,245.00 -0.83%][Nasdaq 10024,729.40 -0.63%][Russell 20002,642.68 -0.59%][FTSE 10010,638.20 -0.67%][Nikkei 22556,868.00 -1.18%][Stock Market Live February 19, 2026: S&P 500 (SPY) Slips on Walmart Outlook][Investing]# Should You Run With Deere After Big Beat-and-Raise Quarter?### Quick ReadDeere ([DE]) beat Q1 expectations with equipment sales of $8B, up 17.5%. Deere raised full-year net income guida ...