CAT vs DE — which stock performed better?

Caterpillar Inc. (CAT) versus Deere & Company (DE), Industrials, on 2026-06-25.

Result

Caterpillar Inc. (CAT) performed better on 2026-06-25. CAT moved 4.900%, DE moved 4.780%.

Why these two companies

This classic heavy machinery rivalry pits Caterpillar's infrastructure and mining dominance against Deere's agricultural equipment empire. The debate centers on Caterpillar's momentum as an unexpected AI data center infrastructure play versus Deere's value proposition as a precision farming technology leader recovering from a cyclical downturn.

The research

Caterpillar (CAT) and Deere & Company (DE) represent two titans of the American industrial sector, both navigating profound technological transformations in heavy machinery. While they operate in distinct primary markets—Caterpillar in construction and mining, Deere in agriculture—both are racing to integrate autonomy, connectivity, and advanced analytics into their massive yellow and green machines.

Caterpillar has emerged as one of the most surprising beneficiaries of the artificial intelligence boom. Beyond its traditional earth-moving equipment, the company's Energy & Transportation segment has seen explosive growth, driven by demand for backup power generators essential for massive AI data centers. In Q1 2026, this segment saw sales surge 22% year-over-year to over $7 billion. This new narrative has propelled CAT's stock up more than 60% year-to-date, pushing its valuation well past traditional historical averages and forcing analysts to rapidly revise their price targets upward.

Conversely, Deere is navigating the bottom of an agricultural equipment cycle following the post-pandemic boom. The company's recent Q1 2026 earnings beat expectations with $13.37 billion in revenue, but precision agriculture sales fell 14% year-over-year. However, Deere's long-term thesis relies on its transition from a pure hardware manufacturer to a high-margin software and technology provider. The company now boasts over one million connected machines covering 500 million acres globally, targeting 600 million acres by 2030. This 'precision ag' ecosystem allows farmers to optimize crop yields and reduce input costs, creating recurring revenue streams for Deere.

The investment debate hinges on momentum versus value. Caterpillar is riding a powerful wave of infrastructure spending and data center construction, but trades at a premium multiple (over 37x trailing earnings) that leaves little room for execution missteps. Deere, trading at a more modest 25x earnings, offers a classic value setup: a high-quality company navigating a cyclical trough. If agricultural commodity prices stabilize and farmers resume equipment upgrades, Deere's precision technology could drive significant margin expansion.

Looking ahead, key catalysts for Caterpillar include the pace of global infrastructure projects and the sustainability of data center capital expenditures. For Deere, investors will be watching crop prices, farm income forecasts, and the adoption rate of its autonomous tractor solutions. Both companies face macroeconomic risks from interest rates and global trade policies, but their differing end-markets offer distinct paths to growth in the second half of the decade.