Deere & Company (NYSE: DE) reported fourth-quarter results ahead of expectations on Wednesday, but shares fell 5% as the agricultural machinery maker continued to face softer demand in large agriculture and ongoing tariff headwinds.

The company posted Q4 earnings of $3.93 per share, above the $3.85 consensus. Revenue surged 11% year over year to $12.39 billion, well above the $9.82 billion estimate. Despite the beat, net income declined 14% to $1.065 billion, down from $1.245 billion a year earlier.

For fiscal 2025, Deere generated net income of $5.027 billion, or $18.50 per share, marking a 29% decline from $7.100 billion in fiscal 2024. Annual revenue fell 12% to $45.684 billion.

Looking ahead, Deere projected fiscal 2026 net income of $4.00 billion to $4.75 billion, signaling further pressure in its core end markets.