CNH Stock Forecast & Price Target

CNH Industrial operates as the world's second-largest manufacturer of agricultural machinery, generating 82% of its industrial net sales from this segment, with a strong presence in North America and EMEA, marking a 12% increase in sales year-over-year in North America and a notable 26% jump in EMEA. The company's construction sales also demonstrated robust performance, increasing by 7.6% year-over-year, driven by heightened shipment volumes, particularly in these key regions, and with expectations of a demand acceleration in 2026 due to favorable economic conditions for precision agriculture. Furthermore, CNH boasts a solid balance sheet, providing ample capacity for cash returns to shareholders and potential strategic mergers and acquisitions, while positioning itself for ongoing earnings growth through operational efficiencies and cost improvements.

CNH Industrial has revised down its FY2025 adjusted earnings per share guidance by $0.13, now projecting between $0.44 and $0.50 due to tariff headwinds, unfavorable sales mix, and decreased expectations for its finance segment, particularly in Brazil. In the third quarter, agriculture sales fell by 10% year-over-year to $2.963 billion, attributed to lower industry demand and inventory destocking in North America, with adjusted EBIT in the agriculture segment dropping 59% year-over-year to $137 million, reflecting significant margin degradation. The company anticipates global agricultural demand will be flat to slightly down in the coming year, highlighting persistent challenges from trade uncertainties, policy changes, and competitive pricing pressures, particularly in key markets.