Oppenheimer's Kristen Owen gives her read on Deere post-earnings

Deere's Outlook and Visibility - Deere is taking a cautiously optimistic outlook for the fourth quarter, with good visibility due to full order books for the next four to five months [1][2] - Uncertainty remains regarding the demand in 2026, considering the less favorable commodities backdrop and trade uncertainty [2][3] - Deere is observing incremental demand in Europe and a potential recovery in South America [4] Pricing and Inventory - Negative pricing was implemented in the large agriculture business to reduce excess inventory in North America, which was unexpected [4] - Early order program commentary was somewhat negative, but anticipated due to short positioning [5] Innovation and Technology - Innovation, particularly technologies like See & Spray, is contributing to higher yields (USDA expects 188 bushels per acre of corn) and driving pricing power for Deere [6][7] - Farmers are willing to pay for technologies that lower input costs while protecting yields [7] Cost Considerations - Tariffs pose incremental cost challenges that need to be factored into pricing [7]