Deere (DE)
NYSE:DE
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Deere
(NYSE:DE)
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Rating:65Neutral
Price Target:
$634.00
▲(7.37% Upside)
Action:Downgraded
Date:05/02/26
The score is driven primarily by solid profitability and strong absolute cash generation, supported by a constructive earnings call with raised FY2026 cash-flow and income guidance and improving order books. These positives are tempered by balance-sheet leverage and weaker cash conversion, mixed/soft technical momentum, and a demanding valuation (P/E ~54.8) with only a modest dividend yield (~1.10%).
Positive Factors
Strong profitability and cash generation
Sustained high margins and multi-billion dollar operating cash flow give Deere durable internal funding for R&D, capex, dealer support and shareholder returns. Reliable absolute cash generation cushions cyclical revenue swings and supports long-term investments in products and digital services.
Negative Factors
Elevated balance-sheet leverage
High leverage limits financial flexibility and amplifies risk in downturns, making Deere more sensitive to interest costs and constraining options for share repurchases or incremental M&A. In a cyclical industry, elevated debt increases probability of tighter liquidity under stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Sustained high margins and multi-billion dollar operating cash flow give Deere durable internal funding for R&D, capex, dealer support and shareholder returns. Reliable absolute cash generation cushions cyclical revenue swings and supports long-term investments in products and digital services.
Read all positive factors
Deere Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyDeere (DE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.75B
Dividend Yield1.34%
Average Volume (3M)1.29M
Price to Earnings (P/E)54.8
Beta (1Y)0.74
Revenue Growth-2.66%
EPS Growth-21.47%
CountryUS
Employees73,100
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)17.78
Shares Outstanding270,107,270
10 Day Avg. Volume1,213,516
30 Day Avg. Volume1,285,759
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 Cap1.37
Enterprise Value/Revenue4.51
Enterprise Value/Gross Profit12.65
Enterprise Value/Ebitda17.97
Forecast
1Y Price Target
$635.10Price Target Upside7.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)17.87
Revenue Forecast (FY)$41.26B
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 Producti...
How the Company Makes Money
Deere makes money primarily by selling new equipment through a dealer network and directly to certain customers, generating revenue across its main operating businesses (historically reported as Production & Precision Agriculture, Small Agricultur...
Deere Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call highlighted solid top-line growth, stronger-than-expected shipment volumes and improving order books across key segments (notably Small Ag & Turf and Construction & Forestry). Management raised guidance in several areas (segment net sales and cash flow) and emphasized operational discipline, improved used-inventory trends, product and digital investments (Tenna, new excavators) and continued shareholder returns. Offsetting factors include persistent tariff headwinds (~$1.2B), ongoing weakness in the large ag industry (U.S./Canada down 15%–20%), softness in South America and some pricing/mix pressures that weighed on PPA margins. Overall, the positive operational execution, upgraded guidance in multiple segments, and improving market indicators outweigh the documented challenges.Positive Updates
Top-line Growth and Profitability
Company net sales and revenues rose 13% year-over-year to $9.611 billion; equipment operations net sales increased 18% to $8.001 billion. Net income attributable to Deere & Company was $656 million, or $2.42 per diluted share. Equipment operations delivered a 5.9% operating margin for the quarter.
Negative Updates
Large Ag Industry Weakness
The U.S. & Canada large ag equipment industry is expected to decline 15%–20% in 2026. Global large ag fundamentals remain challenged; Production & Precision Ag full-year net sales forecast is still down 5%–10% and segment operating margin forecast remains 11%–13%.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Growth and Profitability
Company net sales and revenues rose 13% year-over-year to $9.611 billion; equipment operations net sales increased 18% to $8.001 billion. Net income attributable to Deere & Company was $656 million, or $2.42 per diluted share. Equipment operations delivered a 5.9% operating margin for the quarter.
Read all positive updates
Company Guidance
Deere updated fiscal 2026 guidance with consolidated net income now $4.5–$5.0 billion, an effective tax rate of 25–27%, and cash flow from equipment operations raised to $4.5–$5.5 billion (up $500 million at both ends); equipment operations net sales are expected to grow mid‑single digits. Segment guides: Production & Precision Ag net sales down 5–10% with ~1.5 points of price realization and ~3 points of positive currency translation, operating margin 11–13%; Small Ag & Turf net sales up ~15% (price +2 pts, FX +2 pts), margin 13.5–15%; Construction & Forestry net sales up ~15% (price +2.5 pts, FX ~2 pts), margin 9–11%. Q1 results included consolidated net sales $9.611 billion (+13%), equipment operations net sales $8.001 billion (+18%) and a Q1 equipment ops operating margin of 5.9%; PPA Q1 sales $3.163 billion (+3%, 4.4% margin), SAT $2.168 billion (+24%, 9% margin), C&F $2.67 billion (+34%, 5.1% margin); Q1 net income attributable was $656 million ($2.42 per diluted share). Financial Services Q1 net income was $244 million and FY guidance was raised to $840 million; tariffs are forecast at about $1.2 billion. Management cited stronger order books (C&F order bank +50%), improved used inventory (combines ~15% below Mar‑2024 peak; high‑horsepower tractors down >10% from Mar‑2025 peak) and industry outlooks including North American large‑ag -15% to -20% and construction/compact construction ~+5%.Deere Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
66
Positive
| 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
Positive
590.46
Price Trends
593.52
Negative
541.35
Positive
509.91
Positive
Market Momentum
2.94
Negative
52.20
Neutral
38.29
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 590.46 is above the 20-day moving average (MA) of 581.25, below the 50-day MA of 593.52, and above the 200-day MA of 509.91, indicating a neutral trend. The MACD of 2.94 indicates Negative momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 38.29 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $409.19B | 32.20 | 47.51% | 0.98% | 11.85% | -2.07% | |
68 Neutral | $7.51B | 53.64 | 12.85% | 1.56% | -0.92% | -4.01% | |
65 Neutral | $151.75B | 54.83 | 18.93% | 1.34% | -2.66% | -21.47% | |
65 Neutral | $58.06B | 25.13 | 12.81% | 3.83% | -14.13% | -28.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.20B | 38.18 | 17.90% | 1.10% | -3.80% | ― | |
51 Neutral | $12.93B | 487.54 | 4.99% | 2.67% | -4.05% | -62.88% |
* Industrials Sector Average
DE
Deere
561.83
38.86
7.43%
AGCO
Agco
113.28
7.25
6.83%
CAT
Caterpillar
888.31
539.51
154.68%
CNH
CNH Industrial
10.43
-2.99
-22.28%
OSK
Oshkosh
120.39
18.84
18.55%
PCAR
Paccar
110.32
15.70
16.60%
Deere Corporate Events
Business Operations and StrategyExecutive/Board Changes
Deere Appoints T. Brent Norwood as New CFO
Positive
May 1, 2026
On April 28, 2026, Deere Company’s board elected 44-year-old T. Brent Norwood as senior vice president and chief financial officer, effective May 1, 2026, succeeding acting CFO Ryan D. Campbell, who remains president of the Worldwide Constr...
Executive/Board ChangesShareholder Meetings
Deere Shareholders Reelect Board and Approve Executive Pay
Positive
Feb 27, 2026
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...
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.