Analyst move
Bernstein SocGen Group raised its price objective for Deere & Co. shares (NYSE:DE) to $615 from $521 and retained a Market Perform rating. The adjustment follows Deere's first-quarter financial results, which outpaced Wall Street expectations and included an upward revision to 2026 net income guidance.
Quarterly results and guidance
Deere reported first-quarter net income of $666 million, about 20% ahead of consensus estimates. The company posted earnings per share of $2.42, an 18% increase versus the consensus figure. Management raised its 2026 net income guidance by 9% to a $4.75 billion midpoint.
Revenue performance also exceeded forecasts, with quarter sales of $9.61 billion versus an expected $7.59 billion. The company delivered an earnings surprise of 19.8% and a revenue beat of 26.61% relative to the cited projections.
Operational drivers
Deere identified strength across smaller agriculture and construction equipment. Dairy and livestock markets showed resilience supported by beef prices, while order velocity for turf and compact tractors accelerated. Construction equipment demand was supported by a combination of infrastructure spending, lower interest rates, robust rental demand and starts in data center construction.
Following the quarter, Deere raised its revenue guidance for small agriculture and turf from growth of 10% year-over-year to growth of 15%, and similarly increased its guidance for construction and forestry from up 10% to up 15%. The company's construction order book expanded by 50%, with demand broadening beyond North America into Europe.
Market reaction and valuation
Shares have climbed 42% year-to-date and were trading at about $662, near a 52-week high of $674. The stock now trades at roughly 37 times Deere's revised 2026 earnings per share guidance, which sits above the company's historical trading range of 12 to 25 times.
Analysis from InvestingPro indicates Deere is currently overvalued relative to its Fair Value, noting a high earnings multiple as one of its ProTips. The company reports a price-to-earnings ratio of 33.44 and has experienced a 2.35% decline in revenue over the last twelve months.
Deere's planned excavator launch at ConExpo is cited as the next notable catalyst for the company.
Other analyst activity
In addition to Bernstein's move, Oppenheimer increased its price target for Deere shares to $715 from $531 while maintaining an Outperform rating. Oppenheimer attributed its adjustment to strong construction momentum, a stabilizing agricultural backdrop and a shift from negative to positive earnings revisions.
Takeaway
The combination of a top- and bottom-line beat, upward guidance revisions and sector-specific demand drivers prompted multiple analysts to raise targets and underscore Deere's near-term momentum. At the same time, valuation metrics are elevated relative to historical norms, a factor that market participants will be weighing as they assess further upside potential.