Overview
- Deere posted Q4 EPS of $3.93 on $12.39 billion in revenue, beating estimates, but the stock fell roughly 4% to 6% after the update.
- Fiscal 2026 net income is guided to $4.0 billion to $4.75 billion, well below analyst expectations near $5.1 billion to $5.3 billion, with U.S./Canada large‑ag sales expected to drop 15% to 20%.
- Management now forecasts about $1.2 billion in pre‑tax tariff costs next year, roughly double the nearly $600 million estimated for 2025.
- Small Agriculture & Turf operating margin collapsed to about 1.0% from 10.1% a year earlier, which the company attributed to higher tariffs, warranty expenses, and production costs.
- Executives say 2026 should mark the bottom of the large‑ag cycle and highlight tight inventory—220+ horsepower tractor units are at a 17‑year low—along with cost controls, pricing moves, production shifts, and used‑equipment initiatives.