Deere Says Large Ag Hits Bottom In 2026 With Tariffs Still Hurting

Benzinga

Deere beat Q4 expectations with strong earnings and sales as structural improvements and a broad customer base helped offset a difficult year. The company expects 2026 to be the low point for large agriculture but sees stability or growth in small ag, turf, and construction equipment. Deere projects lower net income and operating cash flow but says disciplined inventory and cost control will support performance.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Deere and company reported fourth quarter earnings of $3.93 per share on $12.39 billion

00:08in sales, beating expectations, according to Benzinga. Chairman and CEO John Mays said Deere

00:15delivered its strongest results for this stage of the cycle because structural improvements

00:19and a diverse customer base helped the company navigate a challenging year.

00:23Mays said 2026 will likely be the low point for large agriculture. However, disciplined inventory

00:29and cost control, along with expected growth in small agriculture and construction, will

00:34help Deere manage pressures and capitalize on a recovering market. Deere expects fiscal

00:392026 net income to fall to $4.0 billion to $4.75 billion and projects operating cash flow

00:47of $4.0 billion to $5.0 billion. Deere expects large agriculture equipment sales in the U.S.

00:54in Canada to drop 15% to 20% in 2026, while small agriculture, turf, and construction equipment

01:01demand is projected to be flat to up 5%. For all things money, visit Benzinga.com.

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