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Deere
(NYSE:DE)
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Rating:71Outperform
Price Target:
$715.00
▲(13.37% Upside)
Action:Upgraded
Date:08/22/26
DE scores well on financial strength and trend momentum: profitability is still solid and leverage metrics have improved, while the stock is in a clear uptrend above major moving averages. The latest earnings call supports the outlook with improved FY2026 guidance and strong technology adoption, but cyclicality in large ag (P&PA sales expected down ~10%) and ongoing tariff costs are notable headwinds. A high P/E (~35.9) and modest dividend yield (~1.0%) weigh on the overall score.
Positive Factors
Precision-ag and digital ecosystem
Growing adoption of automation, connectivity and precision tools can deepen customer integration, support recurring digital revenue and strengthen Deere’s competitive position across its large installed equipment base.
Negative Factors
Large agriculture cycle weakness
Large agriculture is a major demand driver, and lower farm profitability, elevated input costs and commodity volatility are delaying capital spending. Persistent weakness could reduce factory utilization, revenue and segment margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Precision-ag and digital ecosystem
Growing adoption of automation, connectivity and precision tools can deepen customer integration, support recurring digital revenue and strengthen Deere’s competitive position across its large installed equipment base.
Read all positive factors
Deere Key Performance Indicators (KPIs)
Any
Revenue by Geography
Allocates sales across regions (e.g., North America, Europe, Asia), showing where Deere’s demand and growth are concentrated. Reveals risk from regional slowdowns, commodity-price swings, or trade barriers and highlights markets with expansion potential.
Allocates sales across regions (e.g., North America, Europe, Asia), showing where Deere’s demand and growth are concentrated. Reveals risk from regional slowdowns, commodity-price swings, or trade barriers and highlights markets with expansion potential.
Data provided by:
The Fly
The FlyDeere (DE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$176.58B
Dividend Yield0.96%
Average Volume (3M)1.15M
Price to Earnings (P/E)37.5
Beta (1Y)0.56
Revenue Growth7.98%
EPS Growth-5.94%
CountryUS
Employees73,100
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)18.04
Shares Outstanding269,625,430
10 Day Avg. Volume1,435,915
30 Day Avg. Volume1,151,836
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)4.82
Price to Sales (P/S)2.80
P/FCF Ratio38.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$693.07Price Target Upside9.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)18.12
Revenue Forecast (FY)$41.43B
Deere Business Overview & Revenue Model
Company Description
Deere & Company is a global manufacturer and distributor of a wide range of equipment. The company's operations are organized into four primary business segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and F...
How the Company Makes Money
Deere makes money primarily by selling and leasing equipment and related solutions, and by providing aftermarket support and financing. Its revenue model includes: (1) Equipment sales: The largest source of revenue comes from the sale of new machi...
Deere Earnings Call Summary
Earnings Call Date:Aug 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call reflects resilient execution and several strong performance areas — notably Construction & Forestry, Small Ag & Turf, improved inventory health, robust technology adoption, and upgraded company-level guidance for net income and cash flow. However, notable headwinds remain in Production & Precision Ag with full-year sales now expected down ~10%, regional weaknesses (South America and parts of Europe), ongoing tariff-related net costs, and cost pressures that compress margins seasonally. On balance, the positive operational execution, upgraded financial outlook, diversified strength across businesses, and accelerating technology adoption outweigh the identified challenges.Positive Updates
Consolidated Revenue and Profit Growth
Net sales and revenues up 5% year-over-year to $12.608 billion; equipment operations net sales up 6% to $10.999 billion; net income attributable to Deere and Company of $1.379 billion ($5.10 per diluted share).
Negative Updates
Production & Precision Ag Softness
Production and Precision Ag net sales of $3.998 billion were down 6% year-over-year; segment now expected to be down ~10% for the full year. Operating profit was $527 million with a 13.2% operating margin; declines driven by lower shipment volumes and higher production costs despite +2.5 points price realization and ~+1.5 points currency benefit.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue and Profit Growth
Net sales and revenues up 5% year-over-year to $12.608 billion; equipment operations net sales up 6% to $10.999 billion; net income attributable to Deere and Company of $1.379 billion ($5.10 per diluted share).
Read all positive updates
Company Guidance
Deere narrowed and, in some cases, raised its fiscal 2026 guidance: company net income outlook is now $4.75–$5.0 billion with an effective tax rate of 24–26% and equipment operations cash flow expected to be $5.0–$5.5 billion; Q3 results included $12.608 billion of net sales (up 5%), equipment operations net sales of $10.999 billion (up 6%), net income of $1.379 billion ($5.10 per diluted share) and an equipment operating margin of 14.4%. Segment guidance/details include Production & Precision Ag: Q3 sales $3.998B (down 6%), op profit $527M, 13.2% margin, price +2.5 pts, FX +~1.5 pts, full‑year sales now expected down ≈10% with an 11–12% operating margin and ~2.5 pts favorable currency; Small Ag & Turf: Q3 sales $3.383B (up 12%), op profit $622M, 18.4% margin, price +~1.5 pts, FX -~0.5 pt, full‑year sales expected up ≈15% with 14.5–15.5% margin; Construction & Forestry: Q3 sales $3.618B (up 18%), op profit $436M, 12.1% margin, price +8 pts, FX +~0.5 pt, full‑year sales guide +≈20% with 10.5–11.5% margin. Financial Services Q3 net income was $219M with FY26 guidance raised to $870M; tariff dynamics reflect ~$1.1B of direct tariff expense (ex‑refunds) and $382M of refunds recognized YTD (no further refunds assumed in‑year) with a FY27 tariff run‑rate expected near $1.0B. Early order programs are running up mid‑single‑digits, See & Spray factory adoption is set to nearly double to ~1/3 of North American sprayers on order (>50% herbicide savings), >40% of NA planters are taking next‑gen options, and Deere’s digital footprint now exceeds 520M engaged acres, ~1.2M connected machines and >190M highly engaged acres.Deere Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.68B | 44.66B | 50.52B | 60.25B | 51.28B | 43.03B |
| Gross Profit | 17.04B | 16.30B | 19.50B | 22.31B | 15.73B | 13.71B |
| EBITDA | 11.09B | 11.66B | 14.67B | 17.48B | 12.08B | 10.64B |
| Net Income | 4.87B | 5.03B | 7.10B | 10.17B | 7.13B | 5.96B |
Balance Sheet | ||||||
| Total Assets | 107.61B | 106.00B | 107.32B | 104.09B | 90.03B | 84.11B |
| Cash, Cash Equivalents and Short-Term Investments | 10.28B | 9.69B | 8.48B | 8.40B | 5.51B | 8.74B |
| Total Debt | 64.18B | 63.94B | 65.46B | 63.69B | 52.20B | 48.73B |
| Total Liabilities | 79.57B | 79.99B | 84.39B | 82.20B | 69.67B | 65.68B |
| Stockholders Equity | 27.99B | 25.95B | 22.84B | 21.79B | 20.26B | 18.43B |
Cash Flow | ||||||
| Free Cash Flow | 3.87B | 3.23B | 4.43B | 4.12B | 911.00M | 5.15B |
| Operating Cash Flow | 7.25B | 7.46B | 9.23B | 8.59B | 4.70B | 7.73B |
| Investing Cash Flow | -2.08B | -2.06B | -6.46B | -8.75B | -8.48B | -5.75B |
| Financing Cash Flow | -4.85B | -4.58B | -2.72B | 2.81B | 826.00M | -1.08B |
Deere Technical Analysis
Positive
630.66
Price Trends
613.40
Positive
592.85
Positive
562.80
Positive
Market Momentum
12.05
Negative
66.19
Neutral
84.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE, the sentiment is Positive. The current price of 630.66 is above the 20-day moving average (MA) of 622.57, above the 50-day MA of 613.40, and above the 200-day MA of 562.80, indicating a bullish trend. The MACD of 12.05 indicates Negative momentum. The RSI at 66.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE.
Deere Risk Analysis
Deere disclosed 31 risk factors in its most recent earnings report. Deere reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Deere Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.51B | 16.80 | 12.32% | 1.39% | 1.93% | -12.16% | |
71 Outperform | $176.58B | 37.48 | 18.11% | 1.03% | 7.98% | -5.94% | |
71 Outperform | $366.58B | 33.38 | 54.14% | 0.69% | 18.36% | 18.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $8.29B | 16.90 | 12.45% | 0.97% | 1.74% | 443.88% | |
50 Neutral | $14.64B | 50.26 | 4.01% | 0.90% | 0.60% | -62.01% | |
45 Neutral | $464.06M | -6.15 | -14.76% | ― | 4.69% | -281.71% |
* Industrials Sector Average
DE
Deere
676.08
205.20
43.58%
AGCO
Agco
122.32
16.69
15.80%
CAT
Caterpillar
779.16
366.82
88.96%
CNH
CNH Industrial
12.50
1.41
12.69%
OSK
Oshkosh
147.68
12.05
8.88%
TWI
Titan International
7.41
-1.35
-15.41%
Deere Corporate Events
Executive/Board Changes
Deere Director Stockton Plans 2027 Board Exit, Ensuring Continuity
Neutral
Jun 1, 2026
On May 26, 2026, Deere Company director Dmitri Stockton informed the board that he will not stand for re-election at the 2027 annual meeting of stockholders. The company said his decision is not due to any disagreement with its operations, polici...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.