Caterpillar exceeded Q3 estimates with revenue of $17.64B, despite a drop in operating margin to 17.3%. Deere’s full-year net income fell 29% to $5.03B, with Small Agriculture operating profit down 89%. Management predicts 2026 as the agricultural cycle bottom with net income guidance of $4.00B to $4.75B.

Both Caterpillar and Deere reported results impacted by headwinds, with Caterpillar beating estimates and Deere missing badly. Caterpillar’s revenue of $17.64B beat estimates, while Deere reported a drop in full-year net income by 29%.

Caterpillar’s three-segment model mitigates risk, with Energy & Transportation leading growth. Deere’s exposure to agricultural cycles led to a significant drop in Small Ag & Turf profit. Both companies cited tariffs and production costs as margin challenges.

Deere expects fiscal 2026 net income of $4.00B to $4.75B, anticipating stabilization in the agricultural cycle. Caterpillar’s backlog growth and energy segment strength point to steadier momentum. Caterpillar’s 46.3% return on equity and 17.3% operating margin show a more profitable and diversified business model.

Deere’s valuation is cheaper than Caterpillar’s, with analysts forecasting 14% potential gains. Management expects the agricultural cycle to bottom in 2026. Retirement planning involves more than just stock-picking, with a new report prompting Americans to reconsider retiring earlier than expected.

Read more at Yahoo Finance: Deere Calls 2026 the Bottom as Caterpillar Rides Energy Growth Past Estimates