Deere Outlook Falls Short as Farm Rebound Remains Elusive

DE +2.24%

(Bloomberg) — Deere & Co.s (DE) first outlook for the year ahead fell short of expectations as uncertainly continues to surround the timing for a recovery in the US farm economy.

The world’s biggest farm machinery maker said net income in the fiscal year that started Nov. 1 will be between $4 billion and $4.75 billion, below the average Bloomberg estimate for $5.31 billion.

Most Read from Bloomberg

• San Francisco Hotels That Echoed City’s Decline Sell for 75% Off

• Despite Star Architect’s Alleged Misconduct, New Harlem and Princeton Museums Shine

• High-Rises Are Changing the Slovak Capital of Bratislava Beyond Recognition

• Bikeshare Shouldn’t Kick Tourists to the Curb

• DC Mayor Bowser Won’t Seek Reelection in 2026

Shares fell by as much as 4.6% before the start of regular trading in New York.

“Looking ahead, we believe 2026 will mark the bottom of the large ag cycle,” Chief Executive Officer John May said in a statement.

The weak outlook for the maker of iconic green and yellow tractors comes as farmers have been hit hard by low crop prices and President Donald Trump’s tariff policies. Despite a recent deal between the US and China to boost shipments of American crops to Asia, there’s still questions on whether the sales will be enough to shake the US farm economy out of a years-long slump.

Rival manufacturer CNH Industrial NV earlier this month pointed to “ambiguity” on the terms of the trade deal, which leaves the sector with a lack of certainty on how it may benefit farmers in a way that would get them to spend more.

Sign up for Yahoo Finance Breaking News

Still, many in the industry believe China’s resumption of US crop imports as well as a forthcoming aid package for American farmers should be a help in 2026.

Most Read from Bloomberg Businessweek

• Pulte’s Move to Fix Credit Scores Is Bad News for Homebuyers

• The AI Industry Is Built on a Big Unproven Assumption

• Target Needs More Than a Vibe Shift to Turn Its Business Around

• Permabull Tom Lee Sees Bitcoin as High as $200,000 by January’s End

• The Dirty Secret of Biodegradable Plastic

©2025 Bloomberg L.P.