Deere & Company (DE) Falls on Cautious Outlook Amid Tariff Threats

Core Viewpoint - Deere & Company is facing significant challenges, including a cautious outlook for the next fiscal year due to tariff threats and disappointing earnings performance, leading to a notable decline in share prices [1][3]. Financial Performance - In the full fiscal year of 2025, Deere & Company reported a net income decline of 29 percent, falling to $5.027 billion from $7.1 billion the previous year [4]. - Net sales and revenues decreased by 12 percent, dropping to $45.684 billion from $51.716 billion year-on-year [4]. Outlook and Strategy - The company anticipates ongoing margin pressures to persist until 2026, although these pressures are expected to begin to stabilize during that period [2]. - Deere & Company's Chairman and CEO, John May, emphasized the importance of inventory management and cost control, alongside expected growth in small agriculture, turf, construction, and forestry sectors, to navigate current challenges and seize emerging opportunities [3][5].