Core Viewpoint - The company believes that fiscal 2026 represents the bottom of the current cycle, with signs of stabilization in North American large agriculture and strong growth in construction markets [1] Performance Highlights - The performance beat was mainly driven by higher-than-expected shipment volumes and operational efficiencies, which offset significant incremental tariff expenses of approximately $1.2 billion [1] - Strategic underproduction in fiscal 2025 effectively cleared the trade ladder, resulting in a decline of over 40% in late-model used tractor inventory from its 2025 peak, thus facilitating new machine replacement demand [1] Sector Performance - The Construction & Forestry segment outperformed due to resilient infrastructure spending, growth in data centers, and a 50% sequential increase in order banks, providing visibility through year-end [1] - The Small Ag & Turf segment experienced a growth of 24%, reflecting a normalization in the turf sector and strong demand from dairy and livestock producers, supported by robust beef prices [1] - South American performance is under pressure from high interest rates and currency volatility, leading to proactive production cuts in Brazilian combines to manage field inventory [1] Strategic Initiatives - The acquisition of Tenna aligns with a 'machine, task, and job site' strategy, moving beyond hardware to offer brand-agnostic digital fleet optimization for contractors [1]