Deere & Co., US2441991054

Deere & Company stock gains 107.4% as valuation widens lead

Published on 11/10/2026 at 13:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Deere & Company stock has outpaced its farm-equipment peers despite weak industry growth. Investors now weigh premium valuation against the November earnings test.

What Deere's outperformance reveals

Trefis attributes most of Deere's long-term lead to a higher valuation multiple rather than stronger revenue growth.
Precision Agriculture generated 39.7 percent of fiscal 2025 revenue, while See & Spray was included on about one-third of North American sprayers on order.
The next scheduled earnings release is November 25, with the agricultural cycle and fiscal 2026 outlook in focus.

Deere & Co., US2441991054, Illustration mit AI erstellt.

Deere & Company stock traded at 618.60 euros on Lang & Schwarz at 13:14 CET on Tuesday, November 10, 2026, 0.16 percent below the Xetra close of Monday, November 9. The move came as investors weighed a new Trefis analysis of the company's long-term market performance and valuation.

Performance versus the industry

Trefis said Deere gained 107.4 percent over the five years through November 9, including dividends. The median company in Agricultural & Farm Machinery lost 22.9 percent over the same period, while the S&P 500 rose 61.1 percent on a price basis.

The comparison also shows that Deere's lead was not simply the result of a favorable industry cycle. The median company in the sector's agricultural machinery group ranked 15th among 23 Industrials industries over five years. Among larger industry peers, only Blue Bird delivered a stronger return than Deere, according to the analysis.

Valuation drove much of the lead

Business growth was more modest than the share-price performance. Trefis calculated that Deere's revenue declined by an average 7.3 percent annually over the past three years, compared with a 0.7 percent decline for the typical industry company. From 2021 to 2026, revenue rose 13.1 percent, while operating margin barely changed.

Deere's earnings per share increased 4.3 percent during that period, helped by a 13.6 percent reduction in diluted shares as net income declined. At the same time, the earnings multiple expanded to 38.3 times from 19.2 times in 2021. The industry's typical company trades at 28.3 times earnings, leaving Deere more exposed to any disappointment in profit expectations.

Technology meets a cyclical test

Production & Precision Agriculture remained Deere's largest business, accounting for 39.7 percent of fiscal 2025 revenue. Trefis noted that management said during the fiscal third-quarter call that See & Spray technology was included on about one-third of North American sprayers on order.

That technology push supports the case for better margins and a richer product mix, but it does not remove the industry's near-term pressure. Deere has said it believes fiscal 2026 will mark the bottom of the agricultural equipment cycle. That statement is a forecast, not a reported result, and the coming earnings release will test how much of the expected recovery is already reflected in the share price.

Next catalyst for investors

Deere is expected to report its fiscal fourth-quarter results on Wednesday, November 25. Investors will focus on earnings per share, equipment demand and management's view of the next cycle. The key question is whether precision agriculture and automation can support profitability while large agricultural markets remain weak.

US equities trade in the S&P 500 market, providing the broader benchmark for Deere's relative performance.

More news and analyses on Deere & Company stock remain available ahead of the earnings date.