Deere & Company (DE) AI Stock Analysis

Deere & Company manufactures and distributes equipment worldwide across four core segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment supplies grain growers with tractors, combines, harvesters, tillage machinery, and spraying equipment. Small Agriculture and Turf provides utility tractors, lawn equipment, and implements for landscaping and turf care. The Construction and Forestry segment builds loaders, excavators, graders, compactors, and forestry vehicles. Additionally, Financial Services offers equipment financing, leases, and warranties for dealers and end-users.

Deere's revenue grew from $43.03B in FY2021 to a peak of $60.25B in FY2023, before declining 16.1% to $50.52B in FY2024 and falling 11.6% to $44.66B in FY2025. Net income followed a similar trajectory, expanding from $5.96B in FY2021 to $10.17B in FY2023, then dropping to $5.03B in FY2025 with an 11.3% net margin. Operating margin moderated from 24.2% in FY2023 to 18.8% in FY2025. Over the 5-year period from FY2020 to FY2025, Deere achieved a revenue CAGR of 5.2%. In the latest quarter ended July 31, 2026, quarterly revenue growth improved to 4.9% year-over-year, alongside quarterly earnings growth of 7.4%.

As of July 31, 2026, Deere held $10.28B in cash and short-term investments against total debt of $64.18B, resulting in net debt of $53.90B. The company recorded a current ratio of 0.77 and a debt-to-equity ratio of 2.29, with shareholders' equity of $27.99B and total assets of $107.61B. In FY2025, operating cash flow reached $7.46B and free cash flow was $3.23B. Capital allocation during FY2025 included $4.23B in capital expenditures, $1.72B in dividends paid, and $1.14B in share buybacks, contributing to a 13.1% share count reduction over 5 years.

At a share price of $641.86, Deere has a market capitalization of $173.06B and an enterprise value of $245.20B. The stock trades at a trailing P/E of 35.7x and a forward P/E of 29.3x, both above the median of its S&P 500 Industrials peers at 28.4x and 20.1x, respectively. Its enterprise value-to-EBITDA ratio of 20.4x also exceeds the peer median of 17.2x, while its price-to-sales ratio stands at 3.6x compared to the peer median of 3.1x. Over the past year, Deere returned 42.0%, outperforming the S&P 500 return of 16.8%.

Deere pays a forward annual dividend of $6.48 per share, representing a dividend yield of 1.01% with a payout ratio of 36.0%. The company has distributed dividends quarterly for 55 consecutive years, achieving an annualized 5-year dividend growth rate of 16.3%. The most recent ex-dividend date was September 30, 2026.

Wall Street analysts maintain 11 Strong Buy, 5 Buy, and 9 Hold ratings on Deere, with zero Sell or Strong Sell ratings. The mean price target of $694.01 implies an upside of 8.1% from the last close of $641.86. For the current fiscal year ending October 31, 2026, analysts estimate revenue of $41.12B and EPS of $18.11, down 2.1%. Looking ahead to the next fiscal year, 21 analysts forecast revenue to reach $44.62B with EPS rebounding 26.9% to $22.99. Deere beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 25, 2026.

This page is an AI-written research summary of Deere & Company (DE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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