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“Deere Shares Slide as Tariff Pressures Overshadow Q4 Beat and Weak Profit Outlook” 🚨🚨🚨

A strong top- and bottom-line finish to the quarter wasn’t enough to calm investor worries Wednesday, as Deere (DE $487.81, -2.07%) fell roughly 4% in premarket trading following its fourth-quarter earnings release. Despite delivering results above forecasts, the equipment maker’s cautious profit guidance and tariff-related margin headwinds weighed heavily on sentiment.

Deere posted adjusted earnings of $3.93 per share, edging past the $3.84 expected by analysts surveyed by FactSet. Full-year revenue also came in stronger than anticipated, but the company’s forward-looking tone is where markets found concern. Deere now expects 2026 profit between $4 billion and $4.75 billion — missing Wall Street’s hopes of more than $5 billion.

CEO John May acknowledged the pressure front and center, saying “ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain.” He added that 2026 is expected to “mark the bottom of the large ag cycle,” though disciplined cost management could position Deere for a rebound when conditions improve.

The company’s quarterly performance showed mixed momentum:

Q4 Highlights

• $12.4 billion in total revenue, topping expectations by over 5%

• Construction & forestry sales jumped 27%, reflecting continued infrastructure strength

• Tariffs acted as a notable drag on operating profits, especially in the forestry and heavy-machinery categories

Strong sales and improving construction demand suggest underlying resilience. But with tariff pressure eating into margins and agricultural softness continuing to cloud the outlook, investors want more than just an earnings beat — they want clarity on how quickly profitability can recover.