Deere & Company (DE)
NYSEIndustrialsFarm & Heavy Construction MachinerySnapshot 2026-07-07
$603.46-5.00%
Close 2026-07-07 · 1-day change
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Track DE free→Warn: Recent financial performance slipped notably this past month, though still top-half.
John Deere grows sales about 5% a year, backed by strong demand. Profit margins stay healthy with net income guidance raised to $4.5 billion. The company has a stable financial position and steady leadership. Free cash flow remains solid, supporting ongoing investments.
Revenue growth could slow below analyst expectations near -2%. Profit margins may compress if input costs rise. Leadership changes could disrupt execution and delay growth plans.
The price is about 28% above our fair value near $473, reflecting optimism not fully supported by consensus revenue growth of -1.7%. Our fair value is 31% below the Street median, indicating the market may be too optimistic on growth and margins.
Breaks if: CFO transition causes financial leadership disruption
Transition of CFO role to Brent Norwood to strengthen financial leadership.
Standing thesis, reviewed periodically — not a price target or advice.
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Breaks if: net income guidance falls below $4.5 billion
Management aims to increase net income guidance for fiscal 2026.
Stated in 3 of last 3 quarters. Net income guidance increased from $4.0 billion to $4.5 billion at the low end, reflecting management's confidence in growth. Revenue grew from $9.61 billion in 2026-Q1 to $13.37 billion in 2026-Q2, indicating delivering trajectory.
“Net income guidance range increased to $4.5 billion - $5.0 billion”
“Full-year 2026 earnings are projected to be between $4.00 billion and $4.75 billion.”
“Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.25 billion.”
Breaks if: profit margins decline significantly below recent levels
Breaks if: YoY revenue growth falls below -1.7% next year
Management aims to increase net income guidance for fiscal 2026.
Stated in 3 of last 3 quarters. Net income guidance increased from $4.0 billion to $4.5 billion at the low end, reflecting management's confidence in growth. Revenue grew from $9.61 billion in 2026-Q1 to $13.37 billion in 2026-Q2, indicating delivering trajectory.
“Net income guidance range increased to $4.5 billion - $5.0 billion”
“Full-year 2026 earnings are projected to be between $4.00 billion and $4.75 billion.”
“Net income attributable to Deere & Company for fiscal 2025 is forecasted to be in a range of $4.75 billion to $5.25 billion.”