What Happened to Deere & Company (John Deere)?

John Deere, a venerable name in agricultural and heavy machinery, has been undergoing a significant transformation in the mid-2020s, marked by a dual focus on technological innovation and addressing long-standing industry challenges. The company's strategic direction is heavily influenced by the 'Smart Industrial Operating Model,' which aims to deliver economic and sustainable value through new technologies.

Financially, John Deere has experienced a mixed but ultimately positive trajectory. For fiscal year 2025, net income attributable to Deere & Company was $5.027 billion, a decrease from $7.100 billion in fiscal 2024. However, the first quarter of fiscal year 2026, ending February 1, 2026, saw net income of $656 million, or $2.42 per share, compared to $869 million, or $3.19 per share, in the same quarter of 2025. Despite a year-over-year decline in Q1 net income, worldwide net sales and revenues increased by 13% to $9.611 billion, with net sales for equipment operations up 18% to $8.001 billion. This growth was primarily fueled by robust demand in the construction and small agriculture segments, which helped offset ongoing challenges in the large agriculture industry, including high interest rates, tariffs, and lower commodity prices. Consequently, John Deere raised its fiscal 2026 net income guidance to a range of $4.5 billion to $5.0 billion, signaling confidence in an anticipated market recovery, particularly in construction and small ag.

A key turning point and area of intense focus for John Deere has been the rapid advancement and commercialization of autonomous technology. Building on its 2022 autonomous tractor reveal, the company showcased several new autonomous machines at CES 2025, including the Autonomous 9RX tractor for large-scale agriculture, the Autonomous 5ML orchard tractor for spraying, and an autonomous battery-electric mower for commercial landscaping. These machines leverage a second-generation autonomy kit with advanced computer vision, AI, and multiple cameras to enable safe, independent operation, addressing persistent labor shortages across various sectors. The full nationwide launch of the Next Generation Autonomy Kit for 8R and 9RX tractors, offering driverless tillage, commenced in 2026. This push into autonomy has been bolstered by strategic acquisitions, such as the full acquisition of GUSS Automation, a leader in supervised high-value crop autonomy, in August 2025, and the acquisition of construction technology firm Tenna in December 2025 to expand digital capabilities in fleet management.

Another significant development has been the resolution of the long-standing 'right-to-repair' controversy. In April 2026, John Deere reached a preliminary settlement in a class-action lawsuit, agreeing to pay $99 million into a fund for farmers and committing to make digital tools, diagnostic software, and repair resources available to independent repair providers and equipment owners for at least 10 years. This settlement, while not an admission of wrongdoing, marks a pivotal moment in the debate over equipment repair access, though a separate antitrust lawsuit by the Federal Trade Commission and states of Illinois and Minnesota against Deere remains ongoing.

In terms of manufacturing and workforce, John Deere announced plans in January 2026 to open two new U.S. facilities: a state-of-the-art distribution center in Hebron, Indiana, and a cutting-edge excavator factory in Kernersville, North Carolina, which will produce the only excavator designed, developed, and manufactured in the U.S. These expansions are expected to create hundreds of new jobs and represent a commitment to investing $20 billion in U.S. manufacturing over the next decade. This comes after a period of significant workforce adjustments, with over 2,000 layoffs in 2024 and continued reductions into 2025 due to a struggling farm sector. However, improving construction demand led to the recall of over 300 U.S. employees since January 2026, with nearly 50 more in April 2026.

As of May 1, 2026, John Deere is actively navigating a complex market landscape. The company is strategically investing in advanced technologies like autonomy and precision agriculture to address labor shortages and enhance sustainability, with goals to deliver 1.5 million connected machines by 2026 and demonstrate viable low/no carbon alternative power solutions. While facing ongoing challenges in the large agricultural sector, the strong performance and growth outlook in construction and small agriculture, coupled with a proactive approach to legal and ethical concerns like right-to-repair, position John Deere for continued evolution and leadership in its industries.