Deere & Company (DE)
NYSE:DE
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Deere
(NYSE:DE)
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Rating:61Neutral
Price Target:
$616.00
▲(4.33% 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
Portfolio Diversification
Deere’s mix shifted toward faster-growing, higher-margin pockets: Small Ag & Turf and Construction & Forestry both showed strong double-digit sales and margin expansion. This portfolio breadth reduces dependence on large-ag cyclicality, supports more stable revenue and aftermarket/service attach rates, and helps smooth cash flow across farm and infrastructure cycles over the next several quarters.
Negative Factors
Large-Ag Demand Weakness
The pronounced decline in large-ag shipments and a multi-quarter sales guide reduction point to structural softness in large-hp equipment demand. Because large-ag accounts for a disproportionate share of revenue and margins, sustained weakness compresses top-line growth, reduces aftermarket revenue over time, and increases cyclic earnings variability across the 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio Diversification
Deere’s mix shifted toward faster-growing, higher-margin pockets: Small Ag & Turf and Construction & Forestry both showed strong double-digit sales and margin expansion. This portfolio breadth reduces dependence on large-ag cyclicality, supports more stable revenue and aftermarket/service attach rates, and helps smooth cash flow across farm and infrastructure cycles over the next several quarters.
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
$157.49B
Dividend Yield1.34%
Average Volume (3M)1.33M
Price to Earnings (P/E)32.9
Beta (1Y)0.68
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. Volume1,974,942
30 Day Avg. Volume1,327,764
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 Cap1.28
Enterprise Value/Revenue4.32
Enterprise Value/Gross Profit12.20
Enterprise Value/Ebitda18.62
Forecast
1Y Price Target
$657.84Price Target Upside11.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)18.06
Revenue Forecast (FY)$41.67B
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 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 | 10.87B | 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 | 63.82B | 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
590.46
Price Trends
573.63
Positive
573.71
Positive
521.23
Positive
Market Momentum
-0.05
Negative
57.48
Neutral
83.98
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 590.46 is above the 20-day moving average (MA) of 561.91, above the 50-day MA of 573.63, and above the 200-day MA of 521.23, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 83.98 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $416.54B | 44.49 | 47.51% | 0.98% | 11.85% | -2.07% | |
68 Neutral | $8.14B | 14.19 | 12.85% | 1.56% | -0.92% | -4.01% | |
65 Neutral | $61.41B | 24.82 | 12.81% | 3.83% | -14.13% | -28.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.43B | 10.95 | 17.90% | 1.10% | -3.80% | ― | |
61 Neutral | $157.49B | 32.95 | 18.25% | 1.34% | 3.98% | -14.68% | |
51 Neutral | $13.33B | 34.56 | 4.99% | 2.67% | -4.04% | -62.88% |
* Industrials Sector Average
DE
Deere
583.44
68.51
13.30%
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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...
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...
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.