Deere & Co anticipates a larger financial impact from tariffs in 2026, projecting lower annual profit due to reduced margins on large tractors. President Trump’s tariffs have affected various industries, causing farmers to delay equipment purchases. Deere plans cost cuts and diversification to offset weak demand, with recovery not expected until 2027.

The company expects a pre-tax tariff hit of $1.2 billion in fiscal 2026, compared to $600 million in 2025. Deere’s annual net income for 2026 is forecasted to be between $4.00 billion and $4.75 billion, falling short of analysts’ estimates. Despite posting higher fourth-quarter revenue of $12.4 billion, quarterly net income declined from the previous year.

CEO John May acknowledges ongoing margin pressures from tariffs, with focus on forestry and small agriculture markets to counterbalance losses in large farm equipment. Analysts predict Deere will not fully recover until fiscal 2027 due to challenges in offsetting tariff impacts. The company is exploring production shifts and pricing strategies to adapt to changing market conditions.

Read more at Yahoo Finance: Tractor maker Deere flags higher 2026 tariff hit, weak profit