Deere & Company

Deere reported revenues of $12.61 billion, up 4.9% year on year, exceeding analysts' expectations by 1.4% on a strong quarter that included a beat of analysts' EPS estimates. Among the 6 agricultural machinery stocks tracked, group revenues came in line with analysts' consensus estimates while next quarter's revenue guidance was 6.3% below, and share prices have held steady, up 1.3% on average since the latest earnings results. Alamo reported revenues of $450.7 million, up 7.6% year on year, outperforming analysts' expectations by 3% and delivering the biggest analyst estimate beat of the whole group. AGCO reported revenues of $2.61 billion, flat year on year, falling short of analysts' expectations by 4.9% and posting the weakest full-year guidance update among its peers. The Toro Company reported revenues of $1.23 billion, up 8.4% year on year, beating analysts' expectations by 3% and scoring the fastest revenue growth in the group, while Titan International reported revenues of $484.8 million, up 5.2% year on year, surpassing analysts' expectations by 1% and delivering the highest full-year guidance raise among its peers.

The global agriculture tractor market is projected to grow from 2,097,363 units in 2025 to 2,614,170 units by 2031, a compound annual growth rate of 3.74%, according to a new ResearchAndMarkets.com report. Growth is being driven by farm mechanization, precision agriculture, and rising investment in autonomous, semi-autonomous and connected tractors, with GPS-RTK positioning, computer vision, sensors and artificial intelligence enabling more accurate planting, tillage and spraying. Tractors below 50 HP accounted for approximately 59% of the global market in 2025, while 2-wheel-drive models held the largest share by drive type and are forecast to record a CAGR of 3.76%. Asia-Pacific was the largest regional market by unit sales in 2025 and is expected to remain the demand leader, led by India and China; in India, the Goods and Services Tax on tractors was cut from 12% to 5%, while China continues to encourage replacement of older machinery with higher-horsepower equipment. North American performance was mixed in 2025, with U.S. demand hurt by high interest rates, elevated input costs, lower commodity prices and trade uncertainty, while Canada recorded comparatively stronger conditions. The market remains highly concentrated, with CNH Industrial advancing autonomous and connected technologies across Case IH, New Holland and Steyr, and John Deere and AGCO continuing to develop autonomous tractor capabilities.

Deere & Co. shares surged to a record high above $700 this week, climbing 10% since last Friday's close after the company reported a strong fiscal third-quarter and raised the low end of its full-year net income guidance by $250 million. CEO John May stated that 2026 is expected to mark the bottom of the current agricultural equipment cycle, and Baird analyst Mircea Dobre believes this signals the start of a recovery, setting a price target of $800 per share, implying about 15% upside. Despite challenges from fluctuating tariffs and refunds, Deere remains confident due to its diversified product groups and advanced technology offerings.

PG&E and Edison International tumbled 19% and 24%, respectively, after California lawmakers blocked a proposal that would have limited payouts from utilities whose equipment sparked wildfires, prompting downgrades from analysts. Apple slipped nearly 2% on reports that App Store chief Phil Schiller is stepping down, while Howmet Aerospace fell over 8% after SpaceX said it would make turbine parts in-house. Herbalife dropped 13% on its CEO's departure, and Aon slid over 7% after agreeing to buy USI Insurance Services for $17 billion. Eli Lilly fell over 1% after announcing a $2.9 billion acquisition of Merida Biosciences, while GameStop rose 3% on preliminary results showing higher income. Deere and AGCO gained over 3% on an upgrade from Baird.

In premarket trading, Chevron and other energy stocks rose as U.S. oil prices climbed more than 3% following U.S.-Iran strikes in the Middle East, with Halliburton up over 2.5% and Chevron up 2%. PG&E plunged 16% after California lawmakers blocked a proposal to limit wildfire liability, prompting downgrades from analysts including Mizuho. GameStop jumped 4% after reporting preliminary second-quarter results, expecting higher operating and net income despite lower net sales. Aon slipped 1.8% after announcing a $17 billion deal to buy USI Insurance Services from KKR. Pinterest fell over 3% as CFO Julia Brau Donnelly departs, with Vikram Naidu as interim replacement. Deere rose 1% on a Baird upgrade.

Deere & Company reported third-quarter fiscal 2026 net income of $1.379 billion, up 7% year over year, with diluted EPS rising to $5.10 from $4.75, driven by its Construction and Forestry and Small Ag and Turf segments even as its largest division, Production and Precision Agriculture, saw sales decline. Construction and Forestry net sales rose 18% to $3.618 billion with operating margin jumping to 12.1%, while Small Ag and Turf net sales grew 12% to $3.383 billion with margin expanding to 18.4%. In contrast, Production and Precision Agriculture net sales fell 6% to $3.998 billion, and management now expects full-year sales for that segment to be down roughly 10%. Deere raised its full-year net income guidance to $4.75 billion to $5.00 billion and booked $382 million in tariff refunds so far this fiscal year, though it still expects about $1.1 billion in direct tariff expense. The company also highlighted strong technology adoption, with See & Spray expected to nearly double and the John Deere Operations Center tracking 520 million engaged acres.

Deere & Company reported second-quarter results that beat analyst expectations, with revenue of $12.61 billion versus estimates of $12.43 billion and adjusted EPS of $5.10 versus $4.68, representing a 9% beat. The company's operating margin improved to 15.3% from 13% in the same quarter last year. During the earnings call, analysts from Truist, JPMorgan, Oppenheimer, Raymond James, and Morgan Stanley questioned management on early order program pricing, tariff impacts, inventory build, technology mix, and right-to-repair implications. CFO Christopher Seibert noted that lower tariff expense resulted from policy changes, but next year will see higher direct tariff costs as refunds decline. President Deanna Kovar said early order program results are up mid-single digits year over year, and retail activity is on pace with expectations. The stock rose to $637.27 from $580.63 just before the earnings release.

Deere & Company has declared a quarterly dividend of $1.62 per share, in line with its previous payout. The dividend is payable on November 9 to shareholders of record as of September 30, with an ex-dividend date also on September 30. The forward yield is 1.01 percent.

Reservoir announced a $10 million, three-year R&D partnership with John Deere to accelerate the development and commercialization of rugged AI technologies for high-value crop agriculture. The announcement was made at Reservoir's inaugural Ruggedize conference. Since opening its Salinas and Sonoma sites in spring 2026, Reservoir Farms has welcomed more than 20 agricultural startups, highlighting early traction for its field-based model. The partnership will also expand innovation opportunities in rural communities by connecting entrepreneurs and deep-tech engineers with growers and industry partners across California, Arizona, and soon other key agricultural regions.

ScanSource shares surged 9.7% after the company reported fourth-quarter 2026 earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.11 per share. Advance Auto Parts shares plunged 24.6% after the company reported second-quarter 2026 revenues of $2 billion, missing the Zacks Consensus Estimate by 1.66%. Deere & Company shares rose 6.9% after the company reported third-quarter 2026 earnings of $5.1 per share, beating the Zacks Consensus Estimate of $4.79 per share. Nordson Corporation shares rose 8% after the company reported third-quarter 2026 earnings of $3.25 per share, beating the Zacks Consensus Estimate of $3.09 per share.

Deere shares jumped 6.8% after the company reported fiscal third-quarter results that topped expectations and raised its full-year guidance. Net income rose 7% year-over-year to $1.38 billion, or $5.10 per share, while sales increased 5% to $12.61 billion, both clearing Wall Street expectations of $4.71 per share on $12.43 billion in revenue. The Construction and Forestry segment posted an 18% surge in revenue, benefiting from the AI boom as data center build-outs drive strong demand for heavy earthmoving equipment. Management raised full-year 2026 net income guidance to a range of $4.75 billion to $5.00 billion. The shares closed at $626.38, up 7.9% from the previous close.

Walmart shares fell about 10% on Thursday even after the retail giant beat Wall Street estimates and raised its full-year guidance, dragging all three major U.S. indexes lower. The S&P 500 was down 0.29%, the Dow Jones Industrial Average fell 0.64%, and the Nasdaq Composite dropped 0.80% as of 11:44 a.m. ET. Walmart's domestic comparable sales grew just 2.6%, well short of the roughly 3.7% analysts expected and the slowest pace since Q4 2020, while about $2.9 billion of the quarter's earnings surprise came from tariff refunds rather than core operations. The stock's 9.8% decline added to a 21.3% drop over the last three months, and with an $826 billion market cap it weighed heavily on the S&P 500 and Nasdaq. Oil prices rose about 3% after the United Arab Emirates suspended all financial transactions with Iran, and 30-year Treasury yields remained near multi-decade highs, while Treasury Secretary Scott Bessent announced bigger buybacks of long-dated debt and admitted liquidity there is very poor. Deere rose 9.4% on another beat-and-raise report, and Micron Technology gained 1.8% while SK Hynix added 3.7%.

Several companies made notable moves in midday trading, led by Walmart, which tumbled 9% after its same-store sales grew 2.6%, short of the 3.5% expected by analysts polled by FactSet, and its earnings per share guidance for the fiscal third quarter and full year fell short of expectations. Deere jumped almost 9% after its fiscal third quarter trounced estimates, earning $5.10 per share on revenue of $11 billion versus LSEG consensus of $4.70 per share and $10.73 billion, and it lifted the lower end of its full-year net income guidance to $4.75 billion to $5 billion. Moderna plunged 25% one day after soaring 177% on promising late-stage trial results for a skin cancer vaccine developed with Merck. Advance Auto Parts slid 25% after posting revenue of $2 billion, short of the $2.04 billion expected by analysts polled by LSEG, and a same-store sales decline of 0.5% against an estimated gain of 1.4%. CrowdStrike dropped 4% after Axios reported that chief technology officer Elia Zaitsev is leaving to start an AI-focused cyber venture fund called Cognition.

U.S. stock futures fell sharply on Thursday despite strong labor market and manufacturing data, with the Dow down 440 points, the S&P 500 off 44 points, and the Nasdaq down 250 points. The 30-year Treasury yield climbed back to 5.25%, the 10-year to 4.71%, and the 2-year to 4.19%, reversing a brief rally after the Treasury announced liquidity support for long-term bonds. Oil prices remained elevated, with Brent crude at $94 per barrel and WTI at $87 per barrel, as the White House's six-month conflict with Iran continued to pressure global supply. Weekly jobless claims came in at 206,000, below estimates and the lowest since late July, while continuing claims ticked up to 1.799 million. The Philadelphia Fed manufacturing index surged to 47.4 in August, its highest since April 2021, following July's 41.4. In earnings, Walmart beat expectations with $0.81 per share versus $0.73 but fell 7.5% on weak comps and valuation concerns; Deere rose 1.4% after a 6.5% earnings beat; Advance Auto Parts plunged 18% despite a 27.2% earnings beat due to soft guidance; and Chinese stocks Alibaba, NetEase, and Daqo Energy sold off on disappointing results.

U.S. stock futures were little changed on Thursday as investors assessed a fresh batch of corporate earnings and analyst actions. CrowdStrike shares fell 2.8% in premarket trading after Bloomberg reported that the cybersecurity company's chief technology officer is departing to launch an artificial intelligence-focused cybersecurity fund. Advance Auto Parts stock plunged 15.9% after its second-quarter results revealed a significant difference between headline earnings and underlying performance, with about $0.31 of the reported $1.03 adjusted diluted earnings per share coming from one-time tariff refunds. Deere shares jumped 5.1% after the agricultural and construction equipment maker delivered a stronger-than-expected fiscal third quarter, with diluted earnings per share of $5.10 and net sales of about $11 billion. Etsy gained 3.9% in premarket trading after BofA Securities upgraded the online marketplace to Buy from Neutral and raised its price target to $105 from $88. Ultragenyx surged 11.1% after the U.S. Food and Drug Administration granted accelerated approval to GENGLYCOS, also known as DTX401, a gene therapy for glycogen storage disease type Ia in patients aged eight and older. Moderna shares fell 13% in premarket trading, retreating after more than doubling in the previous session following the company's major cancer-vaccine trial announcement with Merck. Wolfspeed plunged 10.5% after the semiconductor company reported a sharply wider-than-expected fiscal fourth-quarter loss, with an adjusted loss of $2.26 per share and revenue of $149.6 million. Webull rose 13.8% after the digital brokerage reported its strongest quarterly results since going public, with second-quarter revenue of $198.8 million and adjusted earnings of $0.05 per share.

Deere & Co. narrowed its annual profit outlook as a stabilizing agriculture sector points to a more pronounced rebound next year for farm machinery. The company estimated net income for the fiscal year between $4.75 billion and $5 billion, compared with its previous outlook for $4.5 billion to $5 billion. Chief Executive Officer John May said 2026 will mark the bottom of the current ag equipment cycle, citing early order program trends, improving used-equipment inventories, and increasing customer adoption of advanced technologies. The outlook follows mixed signals from rivals, with CNH Industrial raising its annual outlook and AGCO trimming its estimates.

Deere reported fiscal third-quarter results that beat top and bottom line estimates and raised its fiscal 2026 net income outlook. The company's earnings snapshot was published on August 20, 2026, alongside related coverage on Seeking Alpha. No specific financial figures were provided in the article body.

Deere & Company reported third-quarter GAAP earnings per share of $5.10, beating estimates by $0.40, while revenue rose 4.9% year over year to $12.61 billion, exceeding expectations by $1.87 billion. The company also updated its fiscal 2026 outlook, forecasting net income attributable to Deere & Company in a range of $4.75 billion to $5.00 billion. CEO May said the company continues to believe 2026 will mark the bottom of the current agricultural equipment cycle, citing early order program trends, improving used-equipment inventories, and increasing customer adoption of advanced technologies. For fiscal 2026, Deere expects large agriculture equipment sales in the U.S. and Canada to decline 15 to 20 percent, while small agriculture and turf sales are seen flat to up 5 percent, and construction equipment sales are projected to rise 5 to 10 percent.

Registration is now open for the Organic Grower Summit, a two-day event presented by Farm Progress, taking place December 2-3, 2026, at the Hyatt Regency Monterey Hotel & Spa in Monterey, California. The summit will feature new additions including an Ag Tech Reception at Reservoir Farms with live field demonstrations, a retailer panel discussion moderated by Matt Landi of the Organic Trade Association, and live filming of This Week in Agribusiness. Expanded educational sessions will cover sustainable practices, emerging technologies, soil health, integrated pest management, and market trends, alongside an enhanced Ag Tech Showcase and comprehensive tradeshow. The Grower of the Year Award, sponsored by John Deere, will recognize four finalists with nominations closing August 31, 2026. Full two-day passes include all sessions, meals, transportation to the Ag Tech Reception, and access to networking events, while single-day passes are also available.

The global agricultural machinery components market is projected to grow from $58.12 billion in 2026 to $77.91 billion by 2031, registering a compound annual growth rate of 6.04%. Aging equipment fleets are driving replacement demand, with Italy's used tractor market reaching 57,000 units and an average machine age of 22 years. Precision farming retrofits are accelerating growth in electronic components, which are forecast to expand at an 8.1% CAGR through 2031. Engine components accounted for 28.4% of the market in 2025, while North America held a 32.7% revenue share. The report profiles 15 companies including Deere & Company, CNH Industrial, AGCO Corporation, and Kubota Corporation.

Deere has agreed with the Federal Trade Commission and five states to expand farmers' access to diagnostic and repair tools for its equipment. The stock has eased 5.54% over the past week but remains up 25.72% year to date and 82.99% over five years. Deere now trades about 10% below the average analyst price target and around 20% below one estimate of intrinsic value, with a last close of $586.86 versus a narrative fair value estimate of $644.21. Rapid adoption of precision agriculture and automation solutions is expected to lift future revenue and margins through higher-margin recurring software and data services. However, the current P/E of 33.1x screens as expensive against the US Machinery industry at 26.8x and a peer average of 26.3x, even though it sits below a fair ratio of 42.8x.

The U.S. construction equipment market is projected to grow at a compound annual growth rate of 3.96% from 2025 to 2031, reaching an estimated 476,905 units by 2031. Earthmoving equipment accounted for about 54% of the market in 2025, with compact earthmoving equipment leading the segment. The road construction segment is expected to expand at a 3.46% CAGR, supported by government infrastructure spending including the Bipartisan Infrastructure Law's nearly $973 billion investment. Key vendors include Caterpillar, Komatsu, Deere & Company, Volvo CE, Liebherr, and Hitachi Construction Machinery, while trends such as electrification and automation are shaping the industry.

Jim Cramer said on Mad Money that Deere & Company is an incredible stock that is not done going higher. He noted that Deere is on fire, but cautioned that the company has a history of being too conservative on conference calls, which could temporarily knock the stock down. Madison Investments highlighted Deere as a top contributor in its first quarter 2026 investor letter, adding that while agricultural equipment end markets remain subdued, the worst of the recent downcycle appears to be behind us. The firm modestly trimmed its Deere holdings as valuations began to reflect a profit recovery.

Deere & Company shares appear undervalued relative to both discounted cash flow and earnings-based valuation models, even after a 93.1% return over the past five years. A two-stage free cash flow to equity model estimates an intrinsic value of about $722 per share, roughly 13.9% above the current price of $621.27, supported by the company's latest twelve-month free cash flow of approximately $3.7 billion. On an earnings basis, Deere trades at a price-to-earnings ratio of about 35.1 times, below a modeled fair P/E of roughly 43.0 times, though it remains above the machinery industry average of 27.9 times and a peer group average of 26.9 times. The company's raised full-year guidance and expanded share buyback program contribute to the view that the gap between price and intrinsic value may partly reflect sentiment catching up to its cash flow profile. Broader valuation checks score only 2 out of 6, suggesting investors should approach the apparent discount with caution rather than treating it as a clear mispricing.

The global planting equipment market is forecasted to grow from USD 21.74 billion in 2026 to USD 29.44 billion by 2031, achieving a CAGR of 6.3%. Growth is driven by advancements in digital agronomy tools, precision fertigation systems, and data-driven nutrient management platforms. The mechanical planting equipment segment holds a substantial market share due to its cost-effectiveness and reliability, while the planter segment is one of the fastest-growing, particularly for row crops like corn, soybeans, and cotton. Key players include Deere & Company, AGCO Corporation, and CNH Industrial N.V., among others.

RBC Capital and Freedom Broker raised their price targets on Deere & Company following strong second-quarter earnings. RBC Capital increased its target to $752 from $736 with an Outperform rating, citing earnings per share of $6.55 that beat estimates of $5.70 and revenue of $13.37 billion that exceeded the expected $11.56 billion. Freedom Broker raised its target to $590 from $570 with a Hold rating, noting that 2026 marks the low point of the major agricultural equipment cycle and that Deere's diverse portfolio is producing stronger intrinsic profitability at the cycle's low stage compared to past cycles.

Deere & Company raised its full-year net income guidance, authorized a new share repurchase program, and highlighted ongoing investments in AI-enabled operational efficiency. The company filed an omnibus shelf registration covering a wide range of securities, adding balance sheet flexibility. The upgraded outlook and buyback authorization support the investment thesis that precision agriculture, automation, and AI tools can offset soft large-agriculture demand, higher tariffs, and intense price competition. However, risks remain from weaker North American large-agriculture spending and rising costs that could pressure margins if technology adoption or pricing fails to keep up. Deere's narrative projects $48.4 billion in revenue and $9.3 billion in earnings by 2029, assuming fairly flat yearly revenue and an earnings increase of about $4.5 billion from $4.8 billion today.

Zacks Investment Research has highlighted Bunge Global, Deere & Company, and Nutrien as three AgTech and food innovation stocks positioned to benefit from the modernization of agriculture. Bunge, a Zacks Rank #1 Strong Buy, is expanding in plant-based proteins and specialty ingredients following its acquisition of IFF's soy protein concentrate business, while its combination with Viterra strengthens global supply-chain capabilities. Deere, rated Zacks Rank #3 Hold, continues to advance precision agriculture with technologies like See & Spray and a connected digital ecosystem supported by a Starlink partnership. Nutrien, also a Zacks Rank #3 Hold, is leveraging proprietary crop inputs, its Echelon digital platform, and low-cost potash and nitrogen assets to support smarter farming practices. The broader AgTech and food innovation theme encompasses companies across the value chain, including Ingredion and Corteva, as the industry responds to weather uncertainty, supply chain complexity, and shifting consumer preferences.