09:13 AM EDT, 08/14/2025 (MT Newswires) -- Deere (DE) lowered the top end of its full-year profit outlook on Thursday amid persistent macro uncertainty, even though the agricultural and construction equipment maker reported better-than-expected fiscal third-quarter results.

Net income is now anticipated to be in a range of $4.75 billion to $5.25 billion for fiscal 2025, reflecting a lower high end versus its previous guidance of $5.5 billion. Shares of the company fell 5.7% in the most recent premarket activity.

"We remain committed to delivering solutions that address our customers' current needs while also laying the groundwork for future growth," Chief Executive John May said in a statement. "The positive outcomes we're enabling reinforce our confidence in Deere's future despite near-term uncertainty."

Deere said its customers remain "cautious amid ongoing uncertainty."

The company continues to project sales in its production and precision agriculture segment to decline by 15% to 20% for the ongoing fiscal year and revenue in the construction and forestry business to decrease by 10% to 15%. In the small agriculture and turf division, sales are forecast to be down by about 10%, compared with the prior outlook for a 10% to 15% drop.

For the quarter ended July 27, Deere posted earnings of $4.75 a share, down from $6.29 the year before, but topped the FactSet-polled consensus of $4.58. Sales slipped to $10.36 billion from $11.39 billion, but were just ahead of the Street's view for $10.35 billion. Consolidated sales and revenue slid 9% to $12.02 billion.

"By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs," according to May. "By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone -- our customers, our dealers, and our business -- even in these challenging times."

Revenue from the production and precision agriculture segment fell 16% to $4.27 billion, while small agriculture and turf slipped 1% to $3.03 billion. Sales in construction and forestry declined 5% to $3.06 billion. Lower shipment volumes weighed on the production and precision agriculture and small agriculture and turf businesses, while lower prices impacted the construction and forestry segment, Deere said.

Operating profit in all three segments decreased due to factors such as reduced shipment volumes and increased production costs due to duties, according to the company.