Deere Gains 33.1% Year-Over-Year as Q1 Revenue Jumps 17.5%
Deere & Company shares are up 33.1% over the past year, beating the farm equipment industry's 30.5% gain and S&P 500's 20.8% return. Q1 2026 revenue rose 17.5%, but net income guidance of $4.5–5.0 billion implies a 6% drop, and shares trade at a 31.45X P/E versus peers at 29.99X.
1. Year-Over-Year Share Performance
Deere & Company shares have risen 33.1% over the past twelve months, outpacing the farm equipment industry's 30.5% gain, the industrial products sector’s 31.1% return and the S&P 500’s 20.8% advance.
2. Q1 2026 Financial Results
In the first quarter of fiscal 2026, Deere reported revenue growth of 17.5%, driven by segment sales of $3.16 billion in Production & Precision Agriculture (up 3%), $2.17 billion in Small Agriculture & Turf (up 24%) and $2.67 billion in Construction & Forestry (up 34%), while net income fell for a ninth consecutive quarter due to higher production costs and tariff pressures.
3. Updated Fiscal 2026 Guidance and Outlook
The company raised its fiscal 2026 net income guidance to $4.5–$5.0 billion, implying a 6% year-over-year decline at the midpoint; it expects Production & Precision Agriculture sales to decrease 5–10%, Small Agriculture & Turf sales to rise 15% and Construction & Forestry sales to increase 15%, with $840 million projected in Financial Services net income.
4. Valuation and Long-Term Drivers
Shares trade at a 31.45X forward P/E, above the industry’s 29.99X and Deere’s five-year median of 24.17X, reflecting premium valuation; long-term demand is underpinned by global food needs, equipment replacement cycles and recent acquisitions of Risutec Oy for silviculture equipment and Tenna for construction technology.