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5h ago

Deere Tops Q4 and Guides 2026 Below Expectations as Shares Slide

Management sees tariff and warranty pressures intensifying into what it calls the bottom of the large‑ag cycle in 2026.

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Deere & Co. 8R autonomous tractor is pictured at Jensen Test Farm in Bondurant, Iowa, U.S., April 28, 2022. Picture taken April 28, 2022. REUTERS/Bianca Flowers
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Overview

  • Deere reported fourth‑quarter EPS of $3.93 on revenue of $12.39 billion, beating estimates as sales rose 11% year over year.
  • Fiscal 2026 net income guidance was set at $4.0–$4.75 billion, coming in below analyst forecasts.
  • The company expects U.S. and Canada large‑ag equipment demand to fall 15%–20% in fiscal 2026.
  • Management projects Production & Precision Agriculture sales down 5%–10% next year, with Small Ag & Turf and Construction & Forestry each up about 10%.
  • Small Agriculture & Turf operating margin dropped to roughly 1.0% from 10.1% on higher tariffs and warranty costs, while shares fell about 4%–5% as Deere also reported a 29% full‑year net income decline to $5.03 billion.