Deere's (DE) Weaker 2026 Forecast May Transform Its Investment Story
Deere's Financial Performance: Deere & Company reported fourth-quarter revenue of $12.39 billion and net income of $1.07 billion, while providing a cautious fiscal 2026 guidance of net income between $4.00 billion and $4.75 billion due to challenges in the large agriculture sector.
Investment Considerations: Investors need to assess Deere's ability to navigate industry cycles and leverage precision agriculture technologies, as ongoing margin pressures and soft demand for large ag equipment pose short-term risks.
Long-term Outlook: Deere anticipates $45.1 billion in revenue and $8.6 billion in earnings by 2028, indicating a slight annual revenue decline but an increase in earnings, suggesting potential growth in small agriculture, turf, and construction segments.
Valuation Insights: Fair value estimates for Deere's stock range from $430 to $624.87 per share, with a current fair value of $525.78 indicating a 13% upside, highlighting the importance of understanding market dynamics and cost pressures in shaping investment decisions.
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Trump Announces $70 Million John Deere Facility in North Carolina
- New Facility Announcement: During a speech in Clive, Iowa, Trump revealed John Deere's plan to build a $70 million excavator manufacturing facility in North Carolina, which will be the only excavator entirely made in the USA, enhancing the company's competitive edge.
- Technological Advancements: The new facility will utilize advanced technologies to produce industry-leading excavators, replacing next-generation models previously manufactured in Japan, and is expected to commence operations within the next year, thereby strengthening John Deere's manufacturing capabilities in the construction sector.
- Distribution Center Development: John Deere is also constructing a new distribution center near Hebron, Indiana, leveraging the state's skilled workforce and central location to support future expansion plans, further solidifying its market position in North America.
- Market Pressures: Despite the positive outlook from the new facilities, John Deere faces a $1.2 billion tariff hit in fiscal 2026, with the CEO indicating that this will lead to ongoing margin pressures, potentially impacting the company's long-term profitability.

Deere & Company to Open Two New U.S. Facilities
- New Facility Construction: Deere & Company announced the opening of a state-of-the-art distribution center near Hebron, Indiana, and a $70 million excavator factory at its Kernersville, North Carolina campus, expected to begin operations within the next year, thereby enhancing its domestic manufacturing capabilities.
- Job Creation: The new facilities are projected to create approximately 300 jobs, which will not only aid local economic recovery but also enhance Deere's production capacity and market competitiveness.
- Stock Price Reaction: Following the announcement of the new factory plans, Deere's shares rose by 0.51%, reflecting the market's positive outlook on its expansion strategy, which may bolster investor confidence and drive future stock price increases.
- Long-Term Strategic Positioning: This investment signifies a commitment to U.S. manufacturing and highlights Deere's long-term growth potential in the agricultural machinery sector, particularly against the backdrop of rising global agricultural demand.






