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Analyst Ratings February 20, 2026

RBC Lifts Deere Price Target After Strong Q1 Results; Other Firms Also Adjust Estimates

Robust first-quarter beats and a guidance raise prompt analysts to re-evaluate Deere's near-term outlook

By Avery Klein DE
RBC Lifts Deere Price Target After Strong Q1 Results; Other Firms Also Adjust Estimates
DE

RBC Capital increased its target for Deere & Company shares to $736 from $541 and kept an Outperform rating after the company reported first-quarter results that exceeded consensus. Deere posted EPS of $2.42 and revenue of $9.61 billion, drove a 9% lift in 2026 net income guidance to $4.75 billion at the midpoint, and recorded a 17.5% year-over-year advance in Equipment Operations net sales. Bernstein SocGen Group and Oppenheimer also revised targets, reflecting improving demand dynamics across agriculture and construction markets.

Key Points

  • RBC Capital raised its price target on Deere to $736 from $541 and maintained an Outperform rating after better-than-expected first-quarter results.
  • Deere reported Q1 EPS of $2.42 versus $2.02 expected and revenue of $9.61 billion compared with $7.59 billion expected; the company increased fiscal 2026 net income guidance by 9% to $4.75 billion at the midpoint.
  • Equipment Operations net sales rose 17.5% year-over-year; management expects mid-single-digit percentage Equipment Operations net sales growth for fiscal 2026 and noted improved demand across most markets during Q1.

RBC Capital elevated its price objective on Deere & Company (NYSE: DE) to $736 from $541 on Thursday while retaining an Outperform rating, citing the company’s first-quarter performance that outpaced consensus expectations.

The firm’s move follows a quarter in which Deere posted stronger-than-expected financial metrics and updated its fiscal 2026 outlook. Management raised Equipment Operations net income guidance for fiscal 2026, and the business recorded year-over-year Equipment Operations net sales growth of 17.5%.

RBC Capital characterized the sales expansion favorably and noted that Deere appears to be executing as the agricultural market potentially approaches a bottom in fiscal 2026. Company management is forecasting mid-single-digit percentage growth in Equipment Operations net sales for fiscal 2026, and the demand outlook for most markets improved over the first quarter.

Separately, Deere reported first-quarter 2026 earnings per share of $2.42, above the $2.02 analysts had expected. Revenue for the period was $9.61 billion, compared with a consensus projection of $7.59 billion. Following the quarter, Deere raised its fiscal 2026 net income guidance by 9% to $4.75 billion at the midpoint.

Other broker responses followed the company’s results and guidance update. Bernstein SocGen Group adjusted its price target to $615 from $521 while maintaining a Market Perform rating. Oppenheimer raised its target to $715 from $531, pointing to solid construction momentum and noting the shift from negative to positive earnings revisions as a factor in its decision.

Taken together, the analyst moves and Deere’s operating updates reflect a market environment that the company describes as stabilizing. The combination of an above-consensus quarter, a guidance raise, and measured management expectations for fiscal 2026 underpin the recent reassessments by multiple firms.

Investors continue to monitor these developments as they weigh positions in Deere, with attention on whether improving demand and the company’s execution will translate into sustained growth through fiscal 2026.

Risks

  • The reference to a potential bottoming in the agricultural market indicates uncertainty - the timing and durability of any market recovery are not guaranteed, which could affect agricultural equipment demand and related revenue.
  • Demand outlook improvements noted during the first quarter may not persist across all regions or product lines, introducing variability in revenue and earnings across Deere’s Equipment Operations.
  • Analyst price-target adjustments and shifts in earnings revisions suggest expectations remain subject to change; market reactions to future quarters or guidance updates could increase stock volatility.

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