Deere & Company: Q3 2025 Earnings Preview and Investment Outlook

With Deere & Company’s Q3 2025 earnings report scheduled for Wednesday, 26 November 2025, the agricultural machinery giant may be approaching a crucial valuation moment. Traders and investors should be aware of the potential scenarios that could impact DE stock in the short and medium term.

Q3 Earnings Expectations: Potential for a Revaluation

Analysts forecast an EPS of $3.96, representing a 12.97% decline compared with last year’s Q3 EPS of $4.55. Despite this earnings deterioration, Deere’s share price has climbed from $448.14 in 2024 to $487.31 in 2025, an 8.74% increase.

This divergence between earnings and share price raises the possibility that Deere & Company may currently be overvalued.

Several macroeconomic and sector-specific factors could explain Deere’s softer performance:

• Weak crop prices reducing farmer purchasing power
• Unfavourable interest rates limiting financing appetite
• Rising material and labour costs compressing margins
• Tough comparisons following unusually strong prior years

If the Q3 report disappoints, Deere & Company could face a negative short-term revaluation as the market reprices expectations.

Technical Analysis: Bullish Momentum Despite Risks

From a technical perspective, Deere & Company recently bounced off three key levels of support simultaneously on Tuesday, 14 October:

• A historical support line
• A Fibonacci support zone
• The lower Bollinger Band

This confluence suggests strong underlying demand. Furthermore, the MACD line has crossed above the signal line, indicating renewed bullish momentum.

Key Resistance Levels

Investors should monitor potential upside resistance at:

• $503.68 (Fibonacci resistance)
• $534.25 (extended Fibonacci target)

Key Support Levels

On the downside, support remains at:

• $484.76
• $469.48
• $454.19

These levels will be critical if earnings trigger volatility.

Fundamental Analysis: Valuation Suggests Fair to Improving Value

Fundamentally, Deere & Company appears reasonably valued:

• Current P/E: 25.47 — bottom half of fair value
• Forward P/E: 25.12 — implying improving earnings expectations

These metrics generate price forecasts of:

• High target: $494.13 (1.42% upside)
• Low target: $490.66 (0.70% upside)

Additionally, analyst consensus remains optimistic with an average price target of $515.58, suggesting a 5.82% upside, indicating the stock may still be undervalued on a forward-looking basis.

Outlook for Traders and Investors

Given the likelihood of a weaker Q3 report, Deere & Company may experience a short-term pullback, depending on the strength of its balance sheet, income statement, and cash flow data. As such, traders may prefer to wait for confirmation following the earnings release.

However, both technical and fundamental indicators point to bullish momentum over the longer term. Investors aiming to maximise opportunity should closely monitor the previously mentioned price levels for signs of continuation or reversal.