Deere & Company shifts perception with high-margin precision agriculture driving strong growth.

Deere & Company is undervalued as a traditional machinery maker, but its precision agriculture platform is fueling high-margin, recurring revenue growth. The company’s ecosystem includes over one million connected machines and covers 500 million acres, aiming for 600 million acres by 2030 with software margins at 85%. Management raised its FY2026 net income guidance to $4.5B–$5.0B, with Q2 2026 results beating expectations by nearly 15%, indicating strong operational momentum. Key growth drivers include adoption of See & Spray technology, farmland consolidation in emerging markets, and expansion of the Operations Center, while risks involve commodity prices, connectivity, and digital competition.