The Rising Influence of Rising Affluence

[DewDiligence]

DE soars_to all-time high on_raised FY2026 guidance:

https://www.prnewswire.com/news-releases/deere-reports-first-quarter-net-income-of-656-million-302692550.html

New FY2026* net-income guidance is $4.5-5.0B, up $0.25-0.50B from the prior guidance of $4.0-4.75B given three months ago.

Based on 270M diluted shares, the new FY2026 net-income guidance equates to FY2026 GAAP EPS of $16.70-18.50.

At the current share price ($670 as I’m typing), the midpoint of the above EPS range ($17.60) represents a P/E ratio of 38x. This is pretty high, but DE thinks FY2026 will mark the bottom of the agriculture cycle, so investors expect strong EPS growth during the rest of the decade.

FY1Q26 CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2026/q1/DE-1Q26-Earnings-Call-Slides.pdf

*DE’s fiscal years end on the Sunday closest to Oct 31.