What Happened to Deere & Company?

Deere & Company, a stalwart in the heavy equipment industry, has been characterized by a dual focus on technological advancement and navigating cyclical market conditions in the period leading up to and including early 2026. The company has made significant strides in autonomous technology, unveiling its second-generation autonomy kit at CES 2025, which extends self-driving capabilities to a wider range of machinery, including large field and orchard tractors, articulated dump trucks, and commercial mowers. These innovations, including new autonomy retrofit kits slated for full release in 2026, aim to address persistent labor shortages across the agricultural, construction, and landscaping sectors.

Financially, John Deere experienced a challenging fiscal year 2025, reporting a net income of $5.027 billion, a notable decrease from $7.100 billion in fiscal 2024. This downturn was largely attributed to difficult market conditions in large agriculture, including lower commodity prices and the impact of tariffs. However, the company's fourth quarter of 2025 showed an increase in worldwide net sales and revenues, signaling some resilience. Looking ahead, CEO John May expressed optimism, stating that 2026 is expected to mark the bottom of the large agricultural cycle. This outlook was reinforced by a strong performance in Q1 fiscal 2026, where John Deere reported net income of $656 million, surpassing analyst estimates, and subsequently raised its full-year fiscal 2026 net income forecast to a range of $4.5 billion to $5.0 billion. This revised guidance is driven by expected growth in the small agriculture & turf and construction & forestry segments, offsetting continued weakness in large agriculture.

A significant ongoing challenge for John Deere has been the 'right-to-repair' movement. Despite signing a Memorandum of Understanding (MOU) with the American Farm Bureau Federation in January 2023, promising to provide farmers with diagnostic tools and information, the company has faced accusations of not fully upholding its commitments. In October 2024, Senator Elizabeth Warren criticized John Deere for allegedly failing to provide meaningful repair access and potentially violating the Clean Air Act. This culminated in January 2025, when the Federal Trade Commission (FTC) and several U.S. states filed a lawsuit against John Deere, alleging monopolistic practices in the repair market. However, in a potentially significant development for farmers, the U.S. Environmental Protection Agency (EPA) issued guidance in February 2026 clarifying that the Clean Air Act supports farmers' right to repair their equipment, directly responding to a request from John Deere.

In terms of strategic growth and sustainability, John Deere continues to expand its global footprint and product portfolio. In August 2025, the company fully acquired GUSS Automation, a leader in autonomous spraying technology for high-value crops, further solidifying its position in agricultural automation. Towards the end of 2025, John Deere also announced the acquisition of Tenna, a construction technology firm, to enhance its digital capabilities in the construction sector. Early 2026 saw further expansion with plans for a new distribution center in Indiana and an excavator factory in North Carolina, aimed at bolstering U.S. manufacturing and supply chain efficiency. The company remains committed to ambitious sustainability goals, including delivering 1.5 million connected machines by 2026 and reducing operational CO2e emissions by 50% by 2030.

As of March 30, 2026, John Deere is in a period of strategic adjustment and cautious optimism. While the large agricultural market remains subdued, the company's diversification into construction and small agriculture, coupled with its aggressive push into autonomous and sustainable technologies, positions it for future growth. The ongoing legal and regulatory landscape surrounding 'right-to-repair' will continue to shape its customer relations and service models, but the recent EPA guidance may offer a clearer path forward for both the company and its customers.