Deere & Company

Key catalysts

• Precision technology adoption

  Autonomy, sensing and software can raise customer productivity and expand recurring technology revenue across Deere equipment.

• Portfolio diversification

  Small Agriculture and Construction & Forestry can offset part of the downturn in large agricultural equipment.

• Investment through the cycle

  Continued product and technology investment can support market-share gains and stronger earnings when farm conditions recover.

Principal risks

• Agricultural downcycle

  Lower farm income, crop prices and used-equipment values can suppress large-equipment demand and dealer orders.

• Production and inventory alignment

  Failure to align production with retail demand can create excess dealer inventory, discounts and factory under-absorption.

• Repair and regulatory litigation

  Right-to-repair litigation and regulatory actions could require business-practice changes and raise legal or compliance costs.

Deere reported higher fiscal second-quarter 2026 worldwide sales and revenues while net income was slightly lower, with Small Agriculture and Construction & Forestry strength offsetting continued pressure in global agricultural markets.

Valuation interpretation

• A through-cycle interpretation depends on portfolio diversification and precision technology sustaining economics during weak large-farm demand.
• Recovery upside should be balanced against dealer inventory, production discipline and uncertainty over the timing of farm-income improvement.