Core Viewpoint - Deere & Co has indicated a significant increase in tariff impacts for 2026, forecasting annual profits below market expectations due to weaker margins on large tractors, resulting in a 5% drop in share prices [1] Financial Forecast - The company anticipates a pre-tax tariff impact of approximately $1.2 billion in fiscal 2026, up from nearly $600 million in 2025 [2] - Annual net income for fiscal 2026 is projected to be between $4.00 billion and $4.75 billion, which is below analysts' estimates of $5.33 billion [3] Quarterly Performance - For the latest quarter, Deere reported a net income of $1.06 billion, or $3.93 per share, down from $1.24 billion, or $4.55 per share, in the same period last year [4] - The fourth-quarter revenue increased by 11% to approximately $12.4 billion, exceeding estimates of $9.85 billion [4] Market Conditions - Lower crop prices and rising production costs have led farmers to postpone significant purchases, opting instead for rentals or pre-owned equipment [2] - The company is exploring production shifts, higher pricing, and expanding its used equipment portfolio to mitigate weak demand [3]