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(Sharecast News) - Agricultural equipment giant Deere & Co beat forecasts with its fourth-quarter results on Wednesday, though shares fell on Wall Street as the company pointed to another sharp slump in earnings this year.
The firm, which trades under the John Deere brand, said net income would be between $4.0bn and $4.75bn over the 12 months to 2 November 2026, down from $5.03bn in the year just gone - already 29.2% lower than earnings made in FY2024.
According to chair and chief executive John May, "2026 will mark the bottom of the large ag cycle", as profits continue to be dampened by trade tariffs and "persistent challenges".
Net income fell 14% in the fourth quarter to $1.07bn, equating to earnings per share of $3.93, down from $4.55 the year before. However, that was still ahead of the $3.84 expected by the market.
The bottom-line beat came as net sales jumped 14% to $10.58bn, comfortably above the $9.83bn consensus estimate helped by rising sales across all divisions.
Production & Precision Agriculture turnover rose 10% to $4.74bn in the fourth quarter, Small Agriculture & Turf sales were up 7% at $2.46bn, while Construction & Forestry sales surged 27% to $3.38bn.
"While ongoing margin pressures from tariffs and persistent challenges in the large ag sector remain, our commitment to inventory management and cost control, coupled with expected growth in small agriculture and turf, and construction and forestry, positions us to effectively manage the business and seize emerging opportunities as market conditions begin to recover," May said.
The stock was down 3.6% at $480.18 by 1455 GMT.
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