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Will Deere Benefit From Settling Its FTC Right-to-Repair Dispute?
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Key Takeaways
Deere settled its FTC and five-state right-to-repair lawsuit over agricultural equipment repairs.
DE will provide farmers and independent repair providers with equal repair resources for 10 years.
Deere plans to keep investing in tools, technology and services to expand customer repair options.
Deere & Company (DE - Free Report) has reached a settlement with the Federal Trade Commission (“FTC”) and five states regarding the ‘right to repair’ lawsuit. Resolving the early-2025 dispute, which accused Deere of restricting farmers from fixing its agricultural equipment, clears the way for Deere to proceed with its ongoing innovation toward more flexible repair options.
According to the settlement, Deere will provide farmers and independent repair providers with the same equipment repair resources, including full access to applicable software capabilities for the next 10 years under the supervision of the FTC. The settlement formalizes the company's ongoing initiative to expand access to diagnostic and repair tools, giving farmers and independent providers the freedom to fix their equipment while giving the FTC the ability to verify compliance.
Deere expects to continue investing in tools, technology and services to give customers better options to care for their equipment. Deere continues to focus on providing reliable equipment, robust dealer support and effective solutions to keep farmers productive.
DE’s Price Performance, Valuations & Estimates
Deere shares have gained 16.5% in a year compared with the Zacks Manufacturing - Farm Equipment industry’s 12.2% growth. In comparison, the broader Zacks Industrial Products sector has returned 22.4% and the S&P 500 has rallied 25.4%.
Image Source: Zacks Investment ResearchThe DE stock has performed better than its peers AGCO Corporation (AGCO - Free Report) and CNH Industrial (CNH - Free Report) . AGCO has gained 7.9% in the time frame, whereas CNH has lost 19.8%.
Image Source: Zacks Investment ResearchDeere is currently trading at a forward 12-month price/earnings of 27.32X, a premium compared with the industry’s 25.20X. It is also higher than DE’s five-year median of 26.06X.
Image Source: Zacks Investment Research
The DE stock also seems relatively more expensive than AGCO Corp and CNH Industrial. AGCO Corp is trading lower at 16.03X and CNH Industrial is trading at 18.89X.
The consensus estimate for fiscal 2026 earnings suggests a year-over-year decline of 2%. The same for fiscal 2027 indicates growth of 27%. The Zacks Consensus Estimate for 2026 sales implies 6% growth. The same for fiscal 2027 suggests a rise of 8%.
EPS estimates for 2026 have moved north, while the same for 2027 have moved south over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Will Deere Benefit From Settling Its FTC Right-to-Repair Dispute?
Key Takeaways
Deere & Company (DE - Free Report) has reached a settlement with the Federal Trade Commission (“FTC”) and five states regarding the ‘right to repair’ lawsuit. Resolving the early-2025 dispute, which accused Deere of restricting farmers from fixing its agricultural equipment, clears the way for Deere to proceed with its ongoing innovation toward more flexible repair options.
According to the settlement, Deere will provide farmers and independent repair providers with the same equipment repair resources, including full access to applicable software capabilities for the next 10 years under the supervision of the FTC. The settlement formalizes the company's ongoing initiative to expand access to diagnostic and repair tools, giving farmers and independent providers the freedom to fix their equipment while giving the FTC the ability to verify compliance.
Deere expects to continue investing in tools, technology and services to give customers better options to care for their equipment. Deere continues to focus on providing reliable equipment, robust dealer support and effective solutions to keep farmers productive.
DE’s Price Performance, Valuations & Estimates
Deere shares have gained 16.5% in a year compared with the Zacks Manufacturing - Farm Equipment industry’s 12.2% growth. In comparison, the broader Zacks Industrial Products sector has returned 22.4% and the S&P 500 has rallied 25.4%.
The DE stock also seems relatively more expensive than AGCO Corp and CNH Industrial. AGCO Corp is trading lower at 16.03X and CNH Industrial is trading at 18.89X.
The consensus estimate for fiscal 2026 earnings suggests a year-over-year decline of 2%. The same for fiscal 2027 indicates growth of 27%. The Zacks Consensus Estimate for 2026 sales implies 6% growth. The same for fiscal 2027 suggests a rise of 8%.
EPS estimates for 2026 have moved north, while the same for 2027 have moved south over the past 60 days.
Deere currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.