Deere Just Flashed a Red Alert for the Farm Economy--And Wall Street Took Notice

Deere & Co. (NYSE:DE) just delivered the kind of outlook that could reset expectations across the entire farm-equipment complex. After unveiling a 2026 net-income forecast of $4 billion to $4.75 billionwell below the average Bloomberg estimate of $5.31 billion and short of the $5.027 billion it posted for the past yearthe stock fell as much as 5.7% in New York. Management framed the guide as a function of a rapidly shifting operating backdrop shaped by tariffs, unpredictable trade flows, and a farm economy still trying to find traction. CEO John May told investors the company is navigating heightened uncertainty and suggested 2026 could be the bottom of the large-ag cycle, even as cost pressures, including roughly $1.2 billion in tariff-related expenses before taxes, continue to encroach on margins. Under the surface, the data paints a sector still struggling to regain momentum. Farmers have been absorbing the effects of President Donald Trump's tariff policies, which raised costs and

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Nov 27, 2025 - 23:20
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Deere Just Flashed a Red Alert for the Farm Economy--And Wall Street Took Notice
Deere & Co. (NYSE:DE) just delivered the kind of outlook that could reset expectations across the entire farm-equipment complex. After unveiling a 2026 net-income forecast of $4 billion to $4.75 billionwell below the average Bloomberg estimate of $5.31 billion and short of the $5.027 billion it posted for the past yearthe stock fell as much as 5.7% in New York. Management framed the guide as a function of a rapidly shifting operating backdrop shaped by tariffs, unpredictable trade flows, and a farm economy still trying to find traction. CEO John May told investors the company is navigating heightened uncertainty and suggested 2026 could be the bottom of the large-ag cycle, even as cost pressures, including roughly $1.2 billion in tariff-related expenses before taxes, continue to encroach on margins. Under the surface, the data paints a sector still struggling to regain momentum. Farmers have been absorbing the effects of President Donald Trump's tariff policies, which raised costs and
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