NEW YORK, Feb 22, 2026, 12:02 EST — The market has closed.
- Deere closed out Friday at $662.49, barely budging after its sharp move higher following earnings.
- Lifting its 2026 profit outlook, the company pointed to solid gains from construction and equipment for smaller farms.
- Markets head into Monday with tariffs and farm income trends still steering the outlook.
Deere & Co (DE) is set to start Monday’s session on Wall Street sitting at an all-time high, with investors piling in after the company’s new outlook and unusually strong comments on the cycle. Shares ticked up 0.07% to close Friday at $662.49.
Deere’s got weight—what happens here usually ripples out to farms, dealers, and construction outfits spending on major equipment. Its shifts tug suppliers and rivals along, good or bad.
Timing is the other factor. Trade policy’s in the mix again, rates remain a drag, and plenty of investors want more than a mere pause—they’re holding out for unmistakable signs that the machinery slump is actually letting up.
Deere’s rally actually kicked off the previous day. Shares leapt from $593.27 on Wednesday to $662.00 on Thursday, a gain of roughly 11.6%, and then edged up another 49 cents Friday, company price data show.
Deere reported net income for the first quarter dropped to $656 million, or $2.42 per share. Net sales and revenues globally moved up 13%, reaching $9.61 billion. The company lifted its net income guidance for fiscal 2026, now expecting $4.5 billion to $5.0 billion. “2026 represents the bottom of the current cycle,” CEO John May said. Deere
Analysts wasted no time sketching out the road ahead. Kristen Owen of Oppenheimer highlighted “lean inventories,” suggesting there’s some potential for gains later this year if things normalize—despite Deere estimating a roughly $1.2 billion pre-tax impact from tariffs in fiscal 2026. Reuters
Tariffs remain a headache. Stocks pushed higher Friday after the U.S. Supreme Court tossed out Donald Trump’s global tariffs, which were set under an emergency statute. Then Trump turned around and quickly rolled out a fresh 10% tariff, this time pegged for 150 days under another trade rule. For manufacturers bringing in parts or metals, that means uncertainty isn’t going away on costs—or pricing.
Another squeeze: farm cash flow. The U.S. Department of Agriculture puts 2026 net farm income—covering overall profits—at $153.4 billion, a 0.7% dip from 2025. With numbers like that, farmers may hold off on equipment upgrades, regardless of dealer incentives.
Still, this rally is vulnerable. Should tariff costs climb once more, or if crop margins remain squeezed heading into spring purchases, traders could call the stock’s move premature compared to actual demand.
The valuation piece is back in focus, too. Deere’s surge has landed it squarely in “show me” mode again—it’s not enough to post one strong quarter and lift the guidance. Sustained order flow and tighter margins will be necessary to convince fresh investors to stick around.
Friday brings January’s U.S. producer price index at 8:30 a.m. EST, a release known for shaking up bond yields and nudging financing costs for buyers of equipment. Deere shareholders are eyeing the $660 level as trading picks up again Monday, watching to see if the stock holds ground.
