Want to see DE full AI Analyst Report?
Top Page
Deere
(NYSE:DE)
Select Model
Select Model
Rating:61Neutral
Price Target:
$649.00
â–²(3.32% Upside)
Action:Reiterated
Date:05/22/26
The score reflects solid underlying financial strength and a supportive earnings update (maintained enterprise guidance and raised Construction & Forestry/Financial Services outlook), offset by notably weak technical momentum and cyclical headwinds in large agriculture plus ongoing tariff-related margin pressure (with Q2 benefiting from a one-time refund). Valuation signals are mixed/limited due to an uninterpretable P/E input and a modest dividend yield.
Positive Factors
Construction & Forestry outperformance
Sustained strength in Construction & Forestry (meaningful volume and margin expansion plus a raised full-year sales guide) provides durable diversification versus cyclic large ag. Infrastructure and construction demand supports multi‑quarter revenue and margin resilience, lowering company-wide cyclicality.
Negative Factors
Large-Ag revenue pressure
Sustained weakness in large agriculture volumes and a reduced sales guide reflect structural headwinds in key markets (notably Brazil). Prolonged softness can compress installed-base growth, aftermarket demand, and pricing leverage, reducing long‑term revenue and margin potential in Deere's core business.
Read all positive and negative factors
Positive Factors
Negative Factors
Construction & Forestry outperformance
Sustained strength in Construction & Forestry (meaningful volume and margin expansion plus a raised full-year sales guide) provides durable diversification versus cyclic large ag. Infrastructure and construction demand supports multi‑quarter revenue and margin resilience, lowering company-wide cyclicality.
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
$159.98B
Dividend Yield1.09%
Average Volume (3M)1.13M
Price to Earnings (P/E)33.5
Beta (1Y)0.66
Revenue Growth3.98%
EPS Growth-14.68%
CountryUS
Employees73,100
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)17.69
Shares Outstanding269,937,440
10 Day Avg. Volume1,041,006
30 Day Avg. Volume1,127,466
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
$665.57Price Target Upside5.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)18.09
Revenue Forecast (FY)$41.64B
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:May 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presents a resilient, diversified Deere with solid execution: revenue and margin gains were supported by strong performance in Small Ag & Turf and Construction & Forestry, meaningful inventory improvements, continued product and technology momentum, and an unchanged enterprise net income guide. However, material near-term headwinds remain—most notably a weakened large-ag market (particularly Brazil), persistent tariff exposure (~3% margin impact), and elevated input/inflationary pressures. The quarter included a one-time $272M tariff refund that meaningfully aided margins, so underlying cost and tariff dynamics warrant monitoring. On balance, the positive operational execution, portfolio diversification, and maintained guidance outweigh the cyclical and policy-related challenges in the near term.Positive Updates
Top-line and Profitability
Net sales and revenues up 5% year-over-year to $13.369B; equipment operations margin of 16.9% in Q2; net income attributable to Deere & Company of $1.773B ($6.55 diluted EPS).
Negative Updates
Large Ag Sales Decline
Production & Precision Ag net sales declined 14% YoY to $4.503B, primarily from lower shipment volumes; full-year segment net sales guide remains down 5–10%.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line and Profitability
Net sales and revenues up 5% year-over-year to $13.369B; equipment operations margin of 16.9% in Q2; net income attributable to Deere & Company of $1.773B ($6.55 diluted EPS).
Read all positive updates
Company Guidance
Deere maintained its fiscal 2026 enterprise guidance with net income of $4.5–$5.0 billion and an effective tax rate of 24–26%, while guiding equipment operations cash flow of $4.5–$5.5 billion and raising Financial Services full‑year net income to $860 million; Q2 results included total net sales of $13.369 billion (up 5%), equipment operations net sales of $11.778 billion (up 5%) and equipment operations margin of 16.9%, with net income of $1.773 billion ($6.55 per diluted share). By segment, Production & Precision Ag Q2 sales were $4.503 billion (down 14%) with a 15.7% margin and full‑year PPA sales guide unchanged at down 5–10% and an 11–13% operating margin; Small Ag & Turf Q2 sales were $3.485 billion (up 16%) with a 20.6% margin and full‑year SAT sales guide up ~15% with a 13.5–15% margin; Construction & Forestry Q2 sales were $3.79 billion (up 29%) with a 14.8% margin and full‑year C&F sales guidance raised to ~+20% with a 10–12% margin. Management expects implied net price realization for equipment operations of ~1.5–2% (with segment price/currency tailwinds noted: PPA ~+1% price/≈+3 pts FX, SAT ~+1.5% price/≈+2.5 pts FX, C&F >+2.5% price/≈+3 pts FX), and reiterated tariff exposure of roughly $1.0–$1.2 billion (≈3% margin headwind) net of a $272 million IEEPA refund recognized in Q2 (lifting Q2 margins ~2.5 pts and about a 1‑pt full‑year benefit), while noting stronger back‑half seasonality (Q4 > Q3) and $635 million returned to shareholders in the quarter.Deere Financial Statement Overview
Summary
Income Statement
74
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 | 46.86B | 44.66B | 50.52B | 60.25B | 51.28B | 43.03B |
| Gross Profit | 16.59B | 16.30B | 19.50B | 22.31B | 15.73B | 13.71B |
| EBITDA | 11.46B | 11.66B | 14.67B | 17.48B | 12.08B | 10.64B |
| Net Income | 4.78B | 5.03B | 7.10B | 10.17B | 7.13B | 5.96B |
Balance Sheet | ||||||
| Total Assets | 107.00B | 106.00B | 107.32B | 104.09B | 90.03B | 84.11B |
| Cash, Cash Equivalents and Short-Term Investments | 9.34B | 9.69B | 8.48B | 8.40B | 5.51B | 8.74B |
| Total Debt | 64.16B | 63.94B | 65.46B | 63.69B | 52.20B | 48.73B |
| Total Liabilities | 79.54B | 79.99B | 84.39B | 82.20B | 69.67B | 65.68B |
| Stockholders Equity | 27.41B | 25.95B | 22.84B | 21.79B | 20.26B | 18.43B |
Cash Flow | ||||||
| Free Cash Flow | 3.77B | 3.23B | 4.43B | 4.12B | 911.00M | 5.15B |
| Operating Cash Flow | 7.93B | 7.46B | 9.23B | 8.59B | 4.70B | 7.73B |
| Investing Cash Flow | -2.74B | -2.06B | -6.46B | -8.75B | -8.48B | -5.75B |
| Financing Cash Flow | -5.38B | -4.58B | -2.72B | 2.81B | 826.00M | -1.08B |
Deere Technical Analysis
Positive
628.16
Price Trends
596.03
Positive
584.33
Positive
549.38
Positive
Market Momentum
5.10
Negative
56.02
Neutral
47.90
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 628.16 is above the 20-day moving average (MA) of 605.61, above the 50-day MA of 596.03, and above the 200-day MA of 549.38, indicating a bullish trend. The MACD of 5.10 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 47.90 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $69.84B | 27.87 | 12.73% | 2.05% | -10.49% | -18.64% | |
72 Outperform | $375.33B | 40.38 | 54.14% | 0.69% | 11.85% | -2.07% | |
72 Outperform | $8.79B | 16.22 | 12.32% | 1.39% | 1.93% | -12.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $7.15B | 14.11 | 12.45% | 0.97% | 1.74% | 443.88% | |
61 Neutral | $159.98B | 33.50 | 18.25% | 1.03% | 3.98% | -14.68% | |
50 Neutral | $12.71B | 33.20 | 4.00% | 0.90% | -4.04% | -62.88% |
* Industrials Sector Average
DE
Deere
620.83
120.12
23.99%
AGCO
Agco
102.83
-6.76
-6.17%
CAT
Caterpillar
842.19
437.30
108.00%
CNH
CNH Industrial
10.91
-1.44
-11.66%
OSK
Oshkosh
155.26
22.13
16.63%
PCAR
Paccar
133.11
38.36
40.48%
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.