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Deere (NYSE: DE) shares are inching down on Wednesday after the industrial titan said tariffs and cost pressures will remain a “persistent challenge” in its fiscal 2026.

The Moline-headquartered firm now sees its net income coming in at $4.375 billion in its current financial year, well below $5.11 billion that analysts had forecast.

Versus its year-to-date high, Deere stock is down more than 10% currently. However, the company is tapping on AI in at least six different ways that make it a “buy” despite the disappointing outlook.

Here’s how the management is counting on AI integration to drive DE shares to record levels over time.

Precision agriculture

Deere’s artificial intelligence systems power tools like “See & Spray”, which use computer vision to distinguish crops from weeds and reduce herbicide usage by up to two‑thirds.

Lower input costs and higher yields improve farmer ROI, driving stronger demand for Deere equipment.

Autonomous equipment

Deere is transforming tractors, combines, and tillage machinery into precision‑guided, autonomous platforms. AI enables them to operate reliably in rural environments with limited connectivity.

This automation differentiates the DE product line, enabling premium pricing and expanding margins.

Satellite connectivity

Deere is working on a 2026 initiative to connect 1.5 million machines via satellite, enabling real-time AI operations even in regions without cellular coverage.

This will expand the firm’s addressable market, even to regions with poor infrastructure, boosting unit sales that may drive DE shares higher over time.

Predictive maintenance and digital twins

Deere is tapping into AI models to monitor equipment health, anticipate failures, and create digital twins of machines to optimise performance.

It reduces downtime for customers, strengthening loyalty and recurring service revenue streams.

Lifecycle and customer success

Deere executives highlight artificial intelligence’s role in optimising farming practices plant-by-plant, boosting yields and sustainability across massive agricultural operations.

That’s significant for Deere shares as higher productivity and sustainability improve the company’s brand value, support long-term adoption, and boost its pricing power.

Responsible AI Framework

The NYSE-listed firm has also launched DeereAI – an internal platform with guardrails to ensure responsible and secure AI deployment across its enterprise systems.

It mitigates regulatory and reputational risks, reassuring investors that Deere’s AI push is durable and well‑governed.

Why does it matter for Deere stock?

The AI integration matters for DE shares as it helps farmers “make every seed count, every drop count, and every bushel count,” according to Jahmy Hindman (CTO), directly improving overall profitability and sustainability.

Note that Deere’s machines touch about one‑third of the Earth’s surface annually, so AI integration has enormous implications for food, fibre, and fuel production.

With global food demand rising and the average farmer ageing, Deere sees artificial intelligence as essential to solving agriculture’s toughest demographic and productivity challenges.

In short, DE isn’t just experimenting with AI – it’s embedding it deeply into equipment, operations, and customer solutions, positioning itself as a leader in artificial intelligence-powered agriculture and industrial machinery.

Over time, this could help unlock significant further upside in Deere stock.

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