| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 27 | 37.5x | 17.8x | Bottom tier | |
Growth | 16 | 8.0% | 7.1% | Bottom tier | |
Quality | 71 | 8.4% | 4.5% | Top tier | |
Safety | 40 | 5.0x | 2.6x | Around median | |
Capital Return | 46 | 0.96% | 2.12% | Around median | |
Momentum | 88 | 29.9% | 2.9% | Top tier | |
Sentiment | 70 | 18 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Deere & Company operates through an equipment portfolio that includes Production and Precision Agriculture, Small Agriculture and Turf, and Construction and Forestry, alongside global financial services. Equipment operations generate revenue from shipments of machinery and productivity and safety technologies, while financial services contribute through the financing portfolio and financing spreads; these services generated net income of $219 million in Q3 fiscal 2026.
In Q3 fiscal 2026, net sales and revenues increased 5% to $12.608 billion, and net sales of equipment operations rose 6% to $10.999 billion, while net income reached $1.379 billion and diluted earnings per share were $5.10. Equipment operations recorded an operating margin of 14.4%, reflecting the impact of cost discipline, improved pricing, and strong factory execution, in addition to $110 million in tariff refunds during the quarter.
Equipment sales in Q3 fiscal 2026 were distributed among $3.998 billion for Production and Precision Agriculture, or about 36% of equipment sales, $3.383 billion for Small Agriculture and Turf, or about 31%, and $3.618 billion for Construction and Forestry, or about 33%. Production and Precision Agriculture sales declined 6%, and the segment recorded an operating margin of 13.2%, while Small Agriculture and Turf sales increased 12% with a margin of 18.4%, and Construction and Forestry sales grew 18% with a margin of 12.1%.
The average analyst price target is $692.67, compared with a wide range of $570 to $804, and the consensus carries a Neutral rating; the average also exceeds the upper end of the 52-week range of $674.19 by about 2.7%. The price-to-earnings ratio of 35.9 times reported with the August 20, 2026 earnings report indicates an elevated valuation dependent on continued margin resilience and growth in construction and precision technologies, while weakness in large agriculture and the expected fiscal 2027 tariff burden justify some of the caution in the consensus.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Deere's net sales and revenues reached $12.608 billion, up 5% year over year. Net income reached $1.379 billion, and diluted earnings per share were $5.10. Equipment operations sales rose 6% to $10.999 billion, with an operating margin of 14.4%. Following the results published on August 20, 2026, the company raised its fiscal 2026 net income forecast to $4.75–5.00 billion.
Management believes fiscal 2026 represents the bottom of the agricultural equipment cycle, but it expects a gradual recovery rather than a sharp rebound in fiscal 2027. Early planter and sprayer orders increased by a mid-single-digit percentage compared with the total for the previous program. In contrast, the company still expects the large agricultural equipment market in the United States and Canada to decline 15–20% during fiscal 2026. It also expects the South American market to decline 15–20% due to higher production and interest costs.
Customers used See & Spray across a much larger area year over year, with herbicide savings exceeding 50%. Orders for fiscal 2027 models indicate that the technology is included on about one-third of ordered sprayers, with its factory installation rate approaching double. More than 40% of ordered planters also included advanced technologies such as ExactRate, ExactShot, and FurrowVision. The John Deere Operations Center ecosystem reached more than 520 million engaged acres and approximately 1.2 million connected machines.
Automated analysis for informational purposes only — not investment advice.
Segment sales increased 18% to $3.618 billion in Q3 fiscal 2026, and operating profit reached $436 million with a margin of 12.1%. Deere is targeting annual sales growth of about 20%, supported by infrastructure, data center, energy, and road projects. The company has orders covering 4–5 months, compared with a typical level of 2–3 months, and the backlog extends into fiscal 2027. SmartGrade adoption has also increased by more than 50% since the start of the fiscal year, while sales of jobsite safety solutions rose nearly 40% annually.
Deere expects direct tariff expenses of approximately $1.1 billion in fiscal 2026, down from a previous estimate of $1.2 billion. The company recorded $110 million in refunds in Q3, bringing total fiscal-year refunds to $382 million, with no additional refunds assumed for the remainder of the year. The reduction in the expense estimate came primarily after the rate on certain European imports declined from about 25% to 15% effective June 1, 2026. Nevertheless, management expects the net burden rate in fiscal 2027 to approach $1 billion.
DE stock carries a Neutral consensus and an average price target of $692.67. Analyst targets range from a low of $570 to a high of $804, revealing significant divergence in estimates of the agricultural cycle's trajectory. The average target exceeds the 52-week range high of $674.19 by about 2.7%. The price-to-earnings ratio of 35.9 times in the August 20, 2026 report reflects elevated expectations for earnings resilience, despite weakness in large agriculture and tariff risks.
