Deere & Co. Leads AI Revolution in Agriculture
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DE?
Source: Fool
- Strategic Shift: Deere & Co. is pivoting towards artificial intelligence and autonomous machinery to tackle rising agricultural costs, expected to boost farm productivity by 15% to 20% while reducing fuel and labor costs by 6%.
- Upgrade Advantage: Deere's precision agriculture technology not only enhances resource efficiency but also allows farmers to retrofit older equipment with new technology, lowering adoption barriers and strengthening competitive positioning in the market.
- Financial Pressure and Market Outlook: Despite a 12% decline in worldwide net sales for fiscal year 2025, analysts predict that 2026 will mark the trough of the agricultural cycle, with Deere's fundamentals showing signs of improvement, particularly in fourth-quarter sales and revenue.
- Stock Performance and Dividend Growth: Deere's stock has risen nearly 30% at the start of 2026, and its dividend has increased from $2.40 per share in 2020 to $6.48 currently; although the current P/E ratio of 32 exceeds the industrial sector average, its consistent dividend remains attractive to investors.
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Analyst Views on DE
Wall Street analysts forecast DE stock price to fall
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 600.840
Low
458.00
Averages
514.25
High
560.00
Current: 600.840
Low
458.00
Averages
514.25
High
560.00
About DE
Deere & Company is engaged in the delivery of agricultural, construction and forestry equipment. Its segments include production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). PPA segment defines, develops and delivers global equipment and technology solutions for production-scale growers of large grains, small grains, cotton and sugarcane. SAT segment defines, develops and delivers global equipment and technology solutions for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers. CF segment defines, develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry and roadbuilding production systems. FS segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment and others. Its products include John Deere Autonomous 8R Tractor and E-Power Backhoe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Deere & Company to Announce Q1 Earnings on February 19
- Earnings Announcement: Deere & Company is set to release its Q1 earnings on February 19, with Wall Street expecting an EPS of $2.06 on revenues of $7.5 billion, which would reinforce its leadership in the agricultural machinery sector if achieved.
- Earnings Forecast Downgrade: Despite beating Q4 estimates, Deere's FY 2026 earnings forecast is below expectations due to tariff impacts and declining margins on large tractors, which may dampen investor confidence moving forward.
- Weak Market Demand: Recent analyses indicate that macro indicators such as weak farm capital investment and heavy reliance on government subsidies suggest limited near-term demand for Deere's core products, potentially affecting future performance.
- Executive Change: CFO Joshua Jepsen will resign effective February 19, 2026, with Campbell named as the acting CFO, a leadership change that could influence the company's strategic direction.
See More
Walmart Earnings Preview and Market Insights
- Walmart Earnings Expectations: Analysts anticipate that Walmart's fourth-quarter net sales will rise approximately 4%, with operating income potentially climbing as much as 11%, indicating a strong holiday performance that will further solidify its market dominance.
- Digital Growth Drivers: Strong pricing strategies and digital momentum are seen as key factors driving performance growth, while the advertising segment may also support gross margin improvements, showcasing Walmart's success in diversifying its revenue streams.
- Klarna Earnings Focus: Klarna is set to release its fourth-quarter and first annual report, with analysts expecting volume growth around 21% and revenue gains near 25%, which will be a crucial indicator of its ability to sustain growth amid intensifying competition in the payments market.
- Labor Market Data: Economists forecast that initial jobless claims for the week ending February 14 will reach 225,000, slightly down from the previous week, providing important insights into labor market health that could influence investor sentiment regarding economic outlook.
See More
Deere & Co. Leads AI Revolution in Agriculture
- Strategic Shift: Deere & Co. is pivoting towards artificial intelligence and autonomous machinery to tackle rising agricultural costs, expected to boost farm productivity by 15% to 20% while reducing fuel and labor costs by 6%.
- Upgrade Advantage: Deere's precision agriculture technology not only enhances resource efficiency but also allows farmers to retrofit older equipment with new technology, lowering adoption barriers and strengthening competitive positioning in the market.
- Financial Pressure and Market Outlook: Despite a 12% decline in worldwide net sales for fiscal year 2025, analysts predict that 2026 will mark the trough of the agricultural cycle, with Deere's fundamentals showing signs of improvement, particularly in fourth-quarter sales and revenue.
- Stock Performance and Dividend Growth: Deere's stock has risen nearly 30% at the start of 2026, and its dividend has increased from $2.40 per share in 2020 to $6.48 currently; although the current P/E ratio of 32 exceeds the industrial sector average, its consistent dividend remains attractive to investors.
See More
Deere's Strategic Shift to AI and Autonomous Equipment
- Stock Surge: Deere's stock has risen nearly 30% since the beginning of 2026, reflecting market confidence in its growth potential, particularly as the agricultural cycle is expected to hit its bottom soon.
- Technological Innovation: As the first to market with autonomous tractors, Deere's technology boosts farm productivity by 15% to 20% while reducing fuel and labor costs by 6%, significantly enhancing farmers' profitability and resource efficiency.
- Upgrade Advantage: Deere's ability to retrofit older equipment with new technology lowers adoption barriers for farmers, allowing them to continue using existing machinery, which strengthens the company's competitive position in the market.
- Financial Outlook: Despite a 12% decline in worldwide net sales for fiscal year 2025, analysts generally view 2026 as the trough of the agricultural cycle, with improving fundamentals suggesting that Deere could be a strong buy moving forward.
See More
Deere's 30% Stock Surge Driven by Innovation Amid Market Challenges
- Innovation-Driven Growth: Cathie Wood's ARKK fund included Deere in its portfolio due to its autonomous tractors and advanced camera technology, driving a nearly 30% stock price increase since the beginning of the year, showcasing the company's innovative potential in the agricultural machinery sector.
- Cautious Financial Outlook: Despite reporting a net income of $5 billion for fiscal 2025, Deere expects a decline to between $4 billion and $4.75 billion in fiscal 2026, reflecting the cyclical nature of agriculture and ongoing margin pressures.
- Valuation Risks Emerge: Deere's current forward P/E ratio of about 36 is significantly higher than the 22 to 30 range seen in 2025, indicating that investor expectations for future earnings may be overly optimistic, posing substantial downside risks.
- Declining Cash Flow Yield: From 2021 to 2025, Deere's free cash flow yield averaged 2.9%, but recent figures show a drop to approximately 2%, suggesting that investors are paying more for each dollar of cash generated, necessitating a careful evaluation of investment timing.
See More
Deere's Earnings Report Approaches as Investors Seek Stability in Agriculture.
Earnings Report: Deere is set to release its fiscal first-quarter earnings on Thursday morning.
Investor Focus: Investors will be particularly interested in metrics related to growth and profit, as well as insights into the health of the U.S. farming economy.
See More
Deere & Company to Announce Q1 Earnings on February 19
- Earnings Announcement: Deere & Company is set to release its Q1 earnings on February 19, with Wall Street expecting an EPS of $2.06 on revenues of $7.5 billion, which would reinforce its leadership in the agricultural machinery sector if achieved.
- Earnings Forecast Downgrade: Despite beating Q4 estimates, Deere's FY 2026 earnings forecast is below expectations due to tariff impacts and declining margins on large tractors, which may dampen investor confidence moving forward.
- Weak Market Demand: Recent analyses indicate that macro indicators such as weak farm capital investment and heavy reliance on government subsidies suggest limited near-term demand for Deere's core products, potentially affecting future performance.
- Executive Change: CFO Joshua Jepsen will resign effective February 19, 2026, with Campbell named as the acting CFO, a leadership change that could influence the company's strategic direction.
See More
Walmart Earnings Preview and Market Insights
- Walmart Earnings Expectations: Analysts anticipate that Walmart's fourth-quarter net sales will rise approximately 4%, with operating income potentially climbing as much as 11%, indicating a strong holiday performance that will further solidify its market dominance.
- Digital Growth Drivers: Strong pricing strategies and digital momentum are seen as key factors driving performance growth, while the advertising segment may also support gross margin improvements, showcasing Walmart's success in diversifying its revenue streams.
- Klarna Earnings Focus: Klarna is set to release its fourth-quarter and first annual report, with analysts expecting volume growth around 21% and revenue gains near 25%, which will be a crucial indicator of its ability to sustain growth amid intensifying competition in the payments market.
- Labor Market Data: Economists forecast that initial jobless claims for the week ending February 14 will reach 225,000, slightly down from the previous week, providing important insights into labor market health that could influence investor sentiment regarding economic outlook.
See More
Deere & Co. Leads AI Revolution in Agriculture
- Strategic Shift: Deere & Co. is pivoting towards artificial intelligence and autonomous machinery to tackle rising agricultural costs, expected to boost farm productivity by 15% to 20% while reducing fuel and labor costs by 6%.
- Upgrade Advantage: Deere's precision agriculture technology not only enhances resource efficiency but also allows farmers to retrofit older equipment with new technology, lowering adoption barriers and strengthening competitive positioning in the market.
- Financial Pressure and Market Outlook: Despite a 12% decline in worldwide net sales for fiscal year 2025, analysts predict that 2026 will mark the trough of the agricultural cycle, with Deere's fundamentals showing signs of improvement, particularly in fourth-quarter sales and revenue.
- Stock Performance and Dividend Growth: Deere's stock has risen nearly 30% at the start of 2026, and its dividend has increased from $2.40 per share in 2020 to $6.48 currently; although the current P/E ratio of 32 exceeds the industrial sector average, its consistent dividend remains attractive to investors.
See More
Deere's Strategic Shift to AI and Autonomous Equipment
- Stock Surge: Deere's stock has risen nearly 30% since the beginning of 2026, reflecting market confidence in its growth potential, particularly as the agricultural cycle is expected to hit its bottom soon.
- Technological Innovation: As the first to market with autonomous tractors, Deere's technology boosts farm productivity by 15% to 20% while reducing fuel and labor costs by 6%, significantly enhancing farmers' profitability and resource efficiency.
- Upgrade Advantage: Deere's ability to retrofit older equipment with new technology lowers adoption barriers for farmers, allowing them to continue using existing machinery, which strengthens the company's competitive position in the market.
- Financial Outlook: Despite a 12% decline in worldwide net sales for fiscal year 2025, analysts generally view 2026 as the trough of the agricultural cycle, with improving fundamentals suggesting that Deere could be a strong buy moving forward.
See More
Deere's 30% Stock Surge Driven by Innovation Amid Market Challenges
- Innovation-Driven Growth: Cathie Wood's ARKK fund included Deere in its portfolio due to its autonomous tractors and advanced camera technology, driving a nearly 30% stock price increase since the beginning of the year, showcasing the company's innovative potential in the agricultural machinery sector.
- Cautious Financial Outlook: Despite reporting a net income of $5 billion for fiscal 2025, Deere expects a decline to between $4 billion and $4.75 billion in fiscal 2026, reflecting the cyclical nature of agriculture and ongoing margin pressures.
- Valuation Risks Emerge: Deere's current forward P/E ratio of about 36 is significantly higher than the 22 to 30 range seen in 2025, indicating that investor expectations for future earnings may be overly optimistic, posing substantial downside risks.
- Declining Cash Flow Yield: From 2021 to 2025, Deere's free cash flow yield averaged 2.9%, but recent figures show a drop to approximately 2%, suggesting that investors are paying more for each dollar of cash generated, necessitating a careful evaluation of investment timing.
See More
Deere's Earnings Report Approaches as Investors Seek Stability in Agriculture.
Earnings Report: Deere is set to release its fiscal first-quarter earnings on Thursday morning.
Investor Focus: Investors will be particularly interested in metrics related to growth and profit, as well as insights into the health of the U.S. farming economy.
See More
