Deere & Company
Deere & Co. designs and sells agricultural, turf, construction, and forestry equipment, with a growing layer of software, telematics, and precision-agriculture tools tied to that machinery. It also operates John Deere Financial, which finances equipment, parts, and related customer needs, making the company both an equipment manufacturer and an embedded financing platform.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueLarge farm equipment, precision technologies, and related aftermarket solutions for row-crop and high-acreage farming.
Equipment for dairy, livestock, high-value crop, small-acre crop, turf, and utility applications.
Construction, earthmoving, roadbuilding, and forestry equipment sold through dealers and company-owned channels.
Proprietary parts, maintenance contracts, warranty extensions, and connected-machine support services.
Customer financing for equipment, parts, services, and operating inputs through John Deere Financial.
Products
Reported · share of revenue- Products85.1 %
- Turf6.0 %
- Compact Construction Equipment4.2 %
- Forestry2.5 %
- Other2.2 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Deere sells primarily to commercial farmers, ranchers, and agribusinesses that need productive, durable equipment and increasingly want connected software to manage operations. It also serves contractors, roadbuilders, and forestry operators, plus dealers and rental partners that support end customers through inventory, service, and financing. The financing arm helps customers buy equipment and smooth seasonal working-capital needs, which deepens the relationship and supports equipment sales.
Buy high-horsepower tractors, harvesters, planters, sprayers, and precision tech to raise yield and efficiency.
Buy smaller tractors, turf machines, and utility equipment for daily operations and land management.
Buy earthmoving, roadbuilding, and material-handling equipment for infrastructure and site work.
Buy forestry machines and attachments for harvesting, land clearing, and timber operations.
Buy inventory, parts, and rental fleet equipment, and use Deere support and financing to serve end users.
Strategy
Deere is pushing deeper integration of technology into equipment through telematics, automation, machine learning, and digital workflow tools. It is also building a Solutions as a Service model and expanding precision technologies across segments to increase customer adoption, recurring engagement, and product differentiation. At the same time, the company is managing production levels and dealer inventory against softer equipment demand and a more competitive pricing environment.
Connected machines and digital tools improve customer productivity and create differentiation beyond hardware.
Recurring digital and service offerings can increase utilization and customer lock-in over time.
Reusing precision-agriculture capabilities in construction and forestry lowers development duplication and speeds innovation.
The industry is highly competitive, so performance, service, and financing are key to retaining customers.
Geography
Deere is headquartered in the United States but operates globally, with manufacturing and assembly positioned close to end markets where possible. The company highlights strong exposure to North America, Brazil, Europe, India, Australia, and other emerging markets, while its forestry retail network and Wirtgen distribution add a broad international footprint. Geography matters because demand is tied to local crop cycles, construction activity, trade policy, currency moves, and regional regulation.
Risks
Deere is exposed to cyclical farm income, construction activity, and commodity prices, so demand can weaken quickly when the agricultural or broader economy softens. It also faces technology, cyber, supply-chain, trade, and regulatory risks because its products are increasingly connected, globally sourced, and sold across many jurisdictions. Financing credit losses, currency swings, and dealer inventory corrections can further amplify earnings volatility.
- Agricultural cycle and weak farm economicsImpact: HighLikelihood: High
Equipment purchases depend on crop prices, farm profitability, and access to funding.
Exposure: Production and precision agriculture; small agriculture and turf
- Trade, tariff, and geopolitical disruptionImpact: HighLikelihood: Medium
Global manufacturing and sales expose Deere to policy changes, sanctions, and border frictions.
Exposure - Cybersecurity and cloud-system disruptionImpact: HighLikelihood: Low
Connected equipment and digital platforms create attack surfaces and third-party dependency.
Exposure - Construction and forestry demand slowdownImpact: High
Sales depend on residential, commercial, public construction, and forestry conditions.
Exposure: Construction & Forestry segment
- Credit losses in financial servicesImpact: MediumLikelihood: High
Dealer and retail financing can deteriorate when customers face weaker cash flow or higher rates.
Exposure: John Deere Financial
Accounting
Judgemental itemsPortfolio quality and macro conditions affect provisions and net income.
Impact: Can materially change earnings in downturns
Hedging and funding activities can create mark-to-market gains or losses.
Impact: Can move Financial Services earnings quarter to quarter
Equipment operations are seasonal and capital intensive, affecting revenue and working capital.
Impact: Quarterly comparability and cash flow
Global sales and manufacturing expose Deere to exchange-rate volatility.
Impact: Revenue, margins, and reported operating income
Items such as Banco John Deere S.A. can distort underlying trends.
Impact: Reported revenue, net income, and balance sheet comparability
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Last updated: 24/09/2026