Deere (DE) AI Stock Analysis

• Market Cap: $167.26B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 54.8
• Beta (1Y): 0.74
• Revenue Growth: -11.66%
• EPS Growth: -27.80%
• Country: US
• Employees: 35,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 2.42
• Shares Outstanding: 270,107,270
• 10 Day Avg. Volume: 2,407,456
• 30 Day Avg. Volume: 1,811,042
• PEG Ratio: -0.89
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 2.80
• P/FCF Ratio: 38.73
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 4.69
• Enterprise Value/Gross Profit: 13.16
• Enterprise Value/Ebitda: 18.70
• 1Y Price Target: $671.31
• Price Target Upside: 9.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 17.71
• Revenue Forecast (FY): $41.03B

• Rating: 73 Outperform
• Price Target: $702.00 ▲(14.32% Upside)
• Action: Upgraded Date: 02/28/26
• Date: Action: Upgraded 02/28/26

The score is driven primarily by solid underlying profitability and constructive technical momentum, supported by a generally positive earnings update with raised cash-flow guidance and improving order books. Offsetting factors are a leveraged balance-sheet profile and moderate cash conversion, plus a relatively expensive valuation (high P/E and modest yield) amid tariff and large-ag demand risks.

Positive Factors

Durable profitability

Sustained TTM gross and net margins indicate durable pricing power and cost control across cycles. Robust margins support reinvestment in products and tech, underwrite shareholder returns, and provide a buffer versus cyclical revenue swings over the next several quarters.

Material cash generation

High absolute operating cash flow and multi-billion free cash flow create persistent internal funding for capex, R&D, and strategic M&A while supporting dividends and buybacks, improving financial optionality through industry cycles.

Product and digital investment

Acquiring Tenna and launching proprietary large excavators strengthen Deere's digital fleet capabilities and product portfolio, expanding differentiation, recurring service/telemetry revenue potential, and competitive positioning in construction markets over the medium term.

Negative Factors

Elevated leverage

High debt-to-equity increases balance-sheet vulnerability in a downturn, limiting financial flexibility for reinvestment or opportunistic M&A, and raising refinancing and covenant risks if equipment volumes weaken or margins compress.

Tariff cost headwind

A recurring ~$1.2B pretax tariff hit is a persistent margin and cost-pressure factor. Uncertainty around trade policy inhibits pricing pass-through and raises input-cost volatility, forcing production adjustments and weighing on sustainable operating margins.

Large-ag industry weakness

Significant expected declines in North American large‑ag demand directly pressure Deere's core segment, reducing unit volumes, utilization and dealer inventories, and heightening reliance on other segments and financial-services resilience during the downturn.

Deere Business Overview & Revenue Model

Company Description

Deere & Company manufactures and distributes various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides mid-size tractors, combines, cotton pickers and strippers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers. The Small Agriculture and Turf segment offers utility tractors, and related loaders and attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications; other outdoor power products; and hay and forage equipment. This segment also resells products from other manufacturers. It serves dairy and livestock producers, crop producers, and turf and utility customers. The Construction and Forestry segment provides a range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape and skid-steer loaders, milling machines, pavers, compactors, rollers, crushers, screens, asphalt plants, log skidders, log feller bunchers, log loaders and forwarders, log harvesters, and attachments; and roadbuilding equipment. The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties, as well as finances retail revolving charge accounts. Deere & Company was founded in 1837 and is headquartered in Moline, Illinois.

How the Company Makes Money

Deere generates revenue primarily through the sale of its machinery and equipment across its three segments. The Agriculture and Turf segment constitutes the largest share of revenue, driven by strong demand for agricultural machinery, particularly in times of favorable crop prices and increasing global agricultural productivity. The Construction and Forestry segment contributes through the sale of construction equipment such as excavators and loaders, which are influenced by infrastructure spending and economic conditions. Additionally, Deere's Financial Services segment provides financing solutions for customers purchasing its equipment, creating a steady revenue stream from interest and fees. The company also capitalizes on partnerships with technology firms to enhance its precision agriculture offerings, further driving sales and customer loyalty.

Deere Financial Statement Overview

Summary

Profitability remains strong (TTM gross margin ~36%, net margin ~11%) and cash generation is sizable, but results appear to be normalizing after a peak year. Balance-sheet leverage is a notable risk (annual debt-to-equity ~2.5–2.9), and free-cash-flow conversion is moderate (FCF about 43% of net income), which can matter in a downcycle.

Income Statement

Profitability is strong, with TTM (Trailing-Twelve-Months) gross margin around 36% and net margin around 11%, indicating solid pricing power and cost control for the cycle. However, growth has cooled: revenue is up modestly in TTM (~3%), while the prior two annual periods show revenue declines, and profitability is off the 2023 peak (when margins and earnings were notably higher). Overall, earnings quality looks good, but the trajectory suggests normalization after a very strong year.

Balance Sheet

Leverage is a key swing factor. Annual periods show elevated debt relative to equity (debt-to-equity roughly 2.5–2.9), which adds balance-sheet risk in a downcycle, even though returns on equity have been strong (roughly ~19–47% across periods, ~20% in TTM). The TTM leverage metric appears much lower than the annual figures, implying a meaningful shift in capital structure or classification, but based on the provided data set overall, the company still screens as more levered than typical industrial peers.

Cash Flow

Cash generation is healthy in absolute dollars (TTM operating cash flow ~$7.7B; free cash flow ~$3.6B) and TTM free cash flow growth is positive. The main weakness is conversion: in TTM, free cash flow is well below net income (about 43%), suggesting working-capital needs or capital intensity is limiting cash realization. Coverage of profit by operating cash flow is also only moderate in TTM, indicating cash flow can be more variable than accounting earnings.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	46.01B	44.66B	50.52B	60.25B	51.28B	43.03B
Gross Profit	16.40B	16.30B	19.50B	22.31B	15.73B	13.71B
EBITDA	11.54B	11.66B	14.67B	17.48B	12.08B	10.64B
Net Income	4.81B	5.03B	7.10B	10.17B	7.13B	5.96B
Balance Sheet
Total Assets	103.44B	106.00B	107.32B	104.09B	90.03B	84.11B
Cash, Cash Equivalents and Short-Term Investments	8.20B	9.69B	8.48B	8.40B	5.51B	8.74B
Total Debt	62.48B	63.94B	65.46B	63.69B	52.20B	48.73B
Total Liabilities	77.08B	79.99B	84.39B	82.20B	69.67B	65.68B
Stockholders Equity	26.30B	25.95B	22.84B	21.79B	20.26B	18.43B
Cash Flow
Free Cash Flow	3.58B	3.23B	4.43B	4.12B	911.00M	5.15B
Operating Cash Flow	7.70B	7.46B	9.23B	8.59B	4.70B	7.73B
Investing Cash Flow	-1.65B	-2.06B	-6.46B	-8.75B	-8.48B	-5.75B
Financing Cash Flow	-6.15B	-4.58B	-2.72B	2.81B	826.00M	-1.08B

Deere Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 614.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 614.04 is above the 20-day moving average (MA) of 612.79, above the 50-day MA of 543.79, and above the 200-day MA of 501.39, indicating a bullish trend. The MACD of 23.95 indicates Positive momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 23.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE.

Deere Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	75 Outperform	$336.02B	30.12	43.54%	0.98%	-1.51%	-9.69%
DE	73 Outperform	$167.26B	54.83	19.74%	1.34%	-11.66%	-27.80%
OSK	73 Outperform	$10.51B	12.46	14.90%	1.56%	-2.28%	-0.53%
PCAR	72 Outperform	$63.73B	24.25	12.92%	3.83%	-15.29%	-42.93%
AGCO	64 Neutral	$9.63B	10.68	18.13%	1.10%	-20.09%	121.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CNH	59 Neutral	$14.97B	22.56	6.63%	2.67%	-18.10%	-65.24%

Deere Corporate Events

Deere Shareholders Reelect Board and Approve Executive Pay

Deere & Company held its annual meeting of shareholders on February 25, 2026, where investors re-elected all director nominees to terms expiring at the 2027 annual meeting, signaling continued support for the current board composition and strategic direction. Shareholders also approved, on an advisory basis, the compensation of the company’s named executive officers and ratified Deloitte & Touche LLP as Deere’s independent auditor for the 2026 fiscal year, reinforcing confidence in the firm’s governance, pay practices, and financial oversight.

The most recent analyst rating on (DE) stock is a Hold with a $615.00 price target. To see the full list of analyst forecasts on Deere stock, see the DE Stock Forecast page.

Deere Appoints Brian Sikes to Board of Directors

On December 4, 2025, Deere & Company announced the appointment of Brian Sikes, the board chair and CEO of Cargill, to its board of directors. Sikes’ extensive experience in the agricultural sector and his commitment to innovation and sustainability are expected to enhance Deere’s strategic direction and support its transformation towards more sustainable solutions. His appointment increases the board size to 11 members, with 10 being independent, non-employee directors.

The most recent analyst rating on (DE) stock is a Buy with a $530.00 price target. To see the full list of analyst forecasts on Deere stock, see the DE Stock Forecast page.