DE: Making progress

Research evidence excerpt

DE: Making progress

RBC Dominion Securities Inc.

Sabahat Khan (Analyst)

(416) 842-7880, sabahat.khan@rbccm.com

Arthur Nagorny, CFA (Analyst)

(416) 842-9988, arthur.nagorny@rbccm.com

Padraig Murphy (Associate)

(416) 842-3770, padraig.murphy@rbccm.com

Bhaven Shah (AVP)

May 24, 2026 (416) 842-8152, bhaven.shah@rbccm.com

Deere & CompanyRESEARCH Making progress Outperform

NYSE: DE; USD 529.15 Our view: Deere delivered good FQ2 results that were ahead of consensus

(even without the IEEPA tariff refund benefit). While there are puts/ Price Target USD 752.00 ↑ 736.00

takes with the outlook/guidance (refund benefit offset by a number of Scenario Analysis*

factors including SA softness, leading to unchanged F26 guidance), Deere

Downside Current Price Upside

continues to execute well despite a challenging backdrop in core markets, Scenario Price Target Scenario

positioning the company well for F27 onward. Note, we have changed our 470.00 529.15 752.00 823.00

revenue estimates to reflect EO revenue (vs. consolidated). 10% 43% 57%EQUITY

Key points: *Implied Total Returns Key Statistics

FQ2 results recap – Deere reported EO Net Sales growth of +5.4% YoY Shares O/S (MM): 270.9 Market Cap (MM): 143,347

(vs. RBCe +0.2%), driven by 28.6/16.4% growth in CF/SAT (vs. RBCe Dividend: 5.88 Yield: 1.1%

+18.0/16.4%) and partially offset by PPA (-13.9% vs. RBCe -15.5%). Growth EnterpriseAvg. Daily Volume:Val. (MM): 1,106,441199,265

in CF/SAT was largely volume/mix-driven (in part due to the lapping of

underproduction in Q2/F25) and further helped by modest price/FX. CF RBC Estimates

volumes benefited from strong industry demand and share gains, while FY Oct 2024A 2025A 2026E 2027E

SAT saw turf and dairy/livestock strength. The YoY PPA Net Sales decline Revenue 46,361.0 40,259.0 43,001.5 47,429.0