Deere forecasts annual profit below estimates due to tariff impacts and weaker margins

Core Viewpoint - The farm equipment maker, Deer, anticipates annual profit to fall below estimates due to tariff impacts and reduced margins from large tractors [1] Group 1: Financial Performance - The recent quarter showed growth across all sectors, particularly in construction, which increased by 27% [2] - Deer expects a sales decline of 5% to 10% for the full year 2026, although this is an improvement compared to previous years where sales dropped by 17% in 2025 and 22% in 2024 [5] Group 2: Market Conditions - The farm economy remains volatile, leading to conservative guidance from Deer [2][5] - Bankruptcies among farmers in Iowa are increasing year on year, indicating stress in the agricultural sector [4] Group 3: Government and Policy Impact - There is potential relief for farmers expected to start in January, reminiscent of the $12 billion relief provided in 2018 [3] - Recent rollbacks on agricultural tariffs may also provide some relief to the farming community [4]