By Nathan Gomes and Nandan Mandayam
(Reuters) -Deere & Co on Wednesday flagged a much bigger hit from tariffs in 2026 and forecast its annual revenue beneath estimates on the again of weaker margins on giant tractors, sending the farm-equipment maker’s shares down 5%.
CEO John Might mentioned ongoing margin pressures from tariffs would proceed to weigh on its giant farm gear unit, though he expects to profit from value cuts and demand in its forestry and small agriculture markets.
The corporate expects a pre-tax tariff hit of round $1.2 billion in fiscal 2026, in contrast with almost $600 million in 2025.
U.S. President Donald Trump’s sweeping tariffs have impacted firms throughout sectors, particularly manufacturing and industrial corporations that depend on imported uncooked supplies.
Decrease crop costs and rising manufacturing prices have prompted farmers to delay big-ticket purchases and go for leases or preowned items for big agricultural gear together with tractors and mix harvesters.
Deere had additionally been contemplating manufacturing shifts, larger pricing and widening its portfolio of used gear because it regarded to offset weak demand.
CFRA Analysis analyst Jonathan Sakraida mentioned he doesn’t anticipate Deere to recuperate till fiscal 2027, including that the corporate struggled to offset tariff impacts.
The corporate expects its annual internet earnings for fiscal 2026 to be between $4.00 billion and $4.75 billion, beneath analysts’ estimates of $5.33 billion, in line with information compiled by LSEG.
The farm-equipment maker posted a quarterly internet earnings of $1.06 billion, or $3.93 per share, for the quarter, down from $1.24 billion, or $4.55 per share, within the year-ago interval.
Analysts on common had anticipated a quarterly revenue of $3.85 per share.
Its fourth-quarter income rose 11% to about $12.4 billion from a yr in the past, topping estimates of $9.85 billion.
(Reporting by Nandan Mandayam and Nathan Gomes in Bengaluru; Modifying by Maju Samuel)
