Truist Securities elevated its price target on Deere & Company (NYSE: DE) shares to $793 from $612 on Thursday and maintained a Buy rating, reflecting the equipment maker's stronger-than-expected start to the fiscal year.
Deere reported first-quarter results that topped consensus estimates by 20% and subsequently raised its fiscal 2026 net income outlook for Equipment Operations by roughly $375 million at the midpoint. The company now projects Equipment Operations net income in a range of $4.5 billion to $5.0 billion, which implies full-year earnings per share near $17.50.
The market reacted strongly to the results. The stock advanced 9.8% over the past week to $658.33 and is up about 42% year to date. However, independent analysis suggests the shares may be trading above their Fair Value estimate.
Deere attributed the outperformance in the quarter to higher-than-anticipated shipments across two business areas: Small Ag & Turf and Construction & Forestry. Sales in Construction & Forestry expanded 34% year over year, and the order book for Earthmoving equipment increased 50% to reach its highest level since May 2024. Small Ag & Turf sales rose 21%, supported by faster order velocity for turf equipment and compact utility tractors, as well as steady orders for mid-size tractors serving dairy and livestock customers.
Following the quarter, Deere raised its 2026 revenue outlook for both Small Ag & Turf and Construction & Forestry by 5 percentage points, bringing each segment's expected growth to roughly 15%. The company also widened its targeted margin ranges for both segments by one percentage point on each end.
In North America large agriculture markets, Deere said tractor order velocity improved over the course of the quarter, with rolling order books now providing visibility into the fourth quarter. The company's combine early order program closed down only 10% to 15% for the year, a result it described as better than it had expected.
Deere's financial results for the first quarter of fiscal 2026 included earnings per share of $2.42, surpassing the consensus forecast of $2.02. Revenue for the period came in at $9.61 billion, ahead of the anticipated $7.59 billion. In light of the stronger-than-forecast performance, Deere raised its Equipment Operations net income guidance for fiscal 2026.
The upbeat quarter and the guidance raise prompted several brokerages to revise their views. RBC Capital increased its price target to $736 and maintained an Outperform rating. Bernstein SocGen Group nudged its target to $615, keeping a Market Perform rating in place. Oppenheimer lifted its price target to $715, citing strong construction momentum and a favorable shift in earnings revisions. BMO Capital adjusted its target to $500 and highlighted an improvement in agricultural sentiment as a factor behind its change.
Key takeaways from Deere's report include robust order trends in construction equipment and small agricultural machinery, upward revisions to revenue and margin prospects for core segments, and a notable re-pricing of the stock amid strong quarterly results. At the same time, some valuation metrics indicate the shares may be trading above a fair value benchmark, a point investors may weigh against the operational momentum.
Investors seeking more granular analysis of Deere's valuation and longer-term projections may consider detailed research reports that synthesize segment-level outlooks and margin assumptions. For now, Deere's early fiscal-year momentum has prompted both company guidance raises and multiple analyst target upgrades.