Deere stock fell 2.22% in the latest session, underperforming the S&P 500’s 1.1% decline. Daily trading volume jumped 18% above its 30-day average, signaling heavier selling pressure. The drop pushed the stock’s forward price-to-earnings multiple down from 16.5× to 16.1×, narrowing its premium versus agricultural equipment peers. Investors will be watching whether this weakness reflects concerns about near-term end-market demand or simply profit-taking after a 12% rally since mid-2025.

Chief Financial Officer Josh Jepsen reported that Deere’s precision agriculture tools saw a 35% year-over-year increase in unit shipments during the fourth quarter. Autonomous tractor deployments accounted for 8% of total machinery revenue in the period, up from 3% a year earlier. Deere boosted R&D spending by 12% to $1.2 billion and raised full-year capital expenditure guidance to $3.8 billion, reflecting sustained investment in automation and connectivity. Jepsen noted that recurring software subscription sales climbed 42%, underlining the shift toward higher-margin services.