DE
Deere & Company
Industrials · Farm & Heavy Construction Machinery · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 43.6/100 reflects a heavily penalized growth factor due to double-digit revenue and nearly 30% net income declines in FY2025, which dragged the overall score down significantly.
- The near-maximum dividend score provided meaningful support to the composite, as consistent multi-year dividend growth and a conservative 34.2% payout ratio were recognized as genuine strengths.
- Moderate profitability and momentum scores partially offset the growth weakness, but uneven quarterly trends and a zero theme score prevented a higher overall ranking.
Why Not Higher
- Broad-based contraction in revenue, net income, and EPS in FY2025 resulted in a very low growth score, which is one of the most heavily weighted factors and pulled the composite score down substantially.
- Volatile and uneven quarterly momentum — including a sharp 2026Q1 trough — limited the momentum score, and the Precision Agriculture & AgTech theme assignment contributed zero points under the current model methodology.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue fell from $51,716,000,000 in FY2024 to $45,684,000,000 in FY2025, a decline of 11.7%. Net income dropped from $7,100,000,000 in FY2024 to $5,027,000,000 in FY2025, a decline of 29.2%, while diluted EPS fell from $25.62 in FY2024 to $18.50 in FY2025, a decline of 27.8%.
The model penalized Deere heavily for broad-based contraction across all three key growth metrics in FY2025, reflecting a significant year-over-year deterioration in top-line revenue, bottom-line earnings, and per-share profitability.
In FY2025, Deere reported a net margin of 11.0% and a return on assets of 4.7%.
Despite the revenue and earnings declines seen in FY2025, the model recognized that Deere retained a double-digit net margin and a positive return on assets, indicating the business remained meaningfully profitable even in a down cycle, which supported a above-midpoint profitability score.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue over the last four reported periods was $12,018,000,000 in 2025Q3, $12,395,000,000 in 2025Q4, $9,611,000,000 in 2026Q1, and $13,369,000,000 in 2026Q2, showing a sharp dip in 2026Q1 followed by a rebound. Net income followed a similar pattern: $1,289,000,000 in 2025Q3, $1,065,000,000 in 2025Q4, $656,000,000 in 2026Q1, and $1,773,000,000 in 2026Q2.
The model likely discounted the 2026Q2 rebound because the trailing four-quarter trend includes a pronounced trough in 2026Q1, creating an uneven and volatile pattern rather than sustained acceleration, which limited the momentum score.
Deere's dividends per share have grown consecutively from $4.36 in FY2022 to $5.05 in FY2023, $5.88 in FY2024, and $6.48 in FY2025, while the dividend payout ratio in FY2025 stood at a conservative 34.2%.
The model rewarded Deere's consistent multi-year dividend growth streak alongside a payout ratio low enough to suggest the dividend is well-covered and has room to continue growing, resulting in a near-maximum dividend score.
Deere & Company is assigned to the Precision Agriculture & AgTech macro theme.
Although the company carries the Precision Agriculture & AgTech theme assignment, this assignment did not translate into a positive score under the model's current methodology, which may reflect timing, weighting, or other scoring criteria independent of the theme label itself.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Deere & Company experienced significant top-line and bottom-line deterioration in FY2025, with revenue falling 11.7% to $45.7 billion and net income declining 29.2% to $5.0 billion, resulting in a High risk rating and a Monitor Only label. Despite this cyclical downturn, the company maintained a double-digit net margin of 11.0% and a return on assets of 4.7%, demonstrating resilient underlying profitability. Quarterly momentum has been uneven, with a sharp revenue trough in 2026Q1 followed by a rebound in 2026Q2, while dividend growth has been a consistent bright spot, with dividends per share rising from $4.36 in FY2022 to $6.48 in FY2025 at a conservative 34.2% payout ratio.
Plain English
Deere is going through a rough patch — sales and profits dropped sharply in 2025 — but the company is still making money and keeps raising its dividend every year, so it's not falling apart, just slowing down.
Bull Case vs. Bear Case
Bull Case
- Deere has grown its dividend per share every year from $4.36 in FY2022 to $6.48 in FY2025, and with a payout ratio of only 34.2%, the dividend appears well-covered and has room to keep growing.
- Even during a significant cyclical downturn, Deere preserved a net margin of 11.0% and a return on assets of 4.7% in FY2025, indicating durable profitability through the cycle.
- The 2026Q2 quarterly revenue rebound to $13.4 billion and net income of $1.8 billion after the 2026Q1 trough suggests the business may be stabilizing after its sharpest period of contraction.
Bear Case
- Revenue fell 11.7% year-over-year in FY2025 to $45.7 billion, while net income dropped 29.2% to $5.0 billion and diluted EPS declined 27.8% to $18.50, reflecting broad-based deterioration across all key financial metrics.
- Quarterly results have been highly volatile, with revenue dropping sharply to $9.6 billion in 2026Q1 before rebounding, making it difficult to identify a sustained recovery trend.
- The Precision Agriculture & AgTech theme assignment did not contribute any positive score under the model's current methodology, limiting the upside from what might otherwise be a favorable thematic tailwind.
What Could Change the Picture
Bullish Triggers
- Sustained sequential improvement in both quarterly revenue and net income over multiple periods — beyond the single 2026Q2 rebound — would signal a durable recovery rather than a one-quarter bounce.
- A continued increase in dividends per share alongside a payout ratio remaining well below 50% would reinforce confidence in Deere's financial resilience and management's commitment to shareholder returns.
Bearish Triggers
- A renewed decline in quarterly revenue or net income below the 2026Q1 trough levels would suggest the downturn is deepening rather than bottoming, materially worsening the outlook.
- A significant compression in net margin below double digits would indicate that Deere's profitability buffer is eroding, undermining the key bull case for owning the stock through the cycle.
Risk Profile
High RiskDeere carries a High risk rating, reflecting the combination of volatile quarterly performance — including a pronounced revenue and net income trough in 2026Q1 — and the absence of detailed financial health evidence to confirm balance sheet resilience, leaving meaningful uncertainty about the company's near-term trajectory.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.