New Aftermarket Tech Push Amid Weak Q3 Results Might Change the Case for Investing in CNH (CNH)

• CNH Industrial unveiled its new FLEETPRO aftermarket services and showcased cutting-edge AI, automation, and sustainability innovations at Agritechnica 2025, with products and technology launches spanning certified spare parts, advanced precision farming kits, and digital integration across the EMEA region.
• Despite receiving industry awards for its Case IH, New Holland, and STEYR brands, these announcements accompanied disappointing third-quarter earnings, signaling a complex mix of challenges and forward-looking initiatives for the company.
• We’ll now examine how CNH’s focus on aftermarket tech solutions and innovation could shift its investment narrative following recent performance.

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CNH Industrial Investment Narrative Recap

Shareholders in CNH Industrial are generally betting on the company’s ability to turn advanced tech integration and precision-driven aftermarket services into sustained margin improvements and long-term growth, even as demand softens in major markets. The recent launch of FLEETPRO and AI-driven offerings signals a commitment to high-tech solutions, but the most crucial near-term catalyst, stabilizing sales in core markets, remains largely unaddressed, while the key risk of ongoing margin compression due to weak demand and cost pressures persists without material near-term relief.

The introduction of the FLEETPRO aftermarket product line, which focuses on certified spare parts and precision farming upgrades across EMEA, is especially relevant as it directly targets recurring, higher-margin revenue streams, aligning with CNH’s push to grow tech-enabled services and partially cushion against cyclical equipment sales declines.

However, investors should be aware that rising inventories and soft demand create risk of further discounting and pricing pressure if...

Read the full narrative on CNH Industrial (it's free!)

CNH Industrial is projected to reach $18.7 billion in revenue and $1.6 billion in earnings by 2028. This outlook is based on a 1.2% annual revenue growth rate and nearly doubling earnings, a $777 million increase, from current earnings of $823 million.

Uncover how CNH Industrial's forecasts yield a $14.11 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community span US$4.92 to US$19.54, with five unique perspectives highlighting a wide range of expectations. While many see innovation as a profit driver, the persistent risk of margin compression could weigh on sentiment and future returns, so review how others view these issues before deciding.

Explore 5 other fair value estimates on CNH Industrial - why the stock might be worth as much as 93% more than the current price!

Build Your Own CNH Industrial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CNH Industrial research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free CNH Industrial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CNH Industrial's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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