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Deere & Co: From Farm Cycles to Smart Machines—Inside the Drivers Shaping Its Long-Term Outlook!

Deere & Company’s latest fiscal results reflect a blend of strategic maneuvering and market challenges, presenting both opportunities and headwinds for potential investors. The company reported a decrease in net sales and revenues for fiscal year 2025 by 12% to $45.7 billion, with equipment operations specifically seeing a 13% decline to $38.9 billion. Despite these reductions, the company achieved over $5 billion in net income, indicating robust operational resilience amidst a challenging market landscape. In the fourth quarter, Deere’s net sales and revenues were up 11% to $12.4 billion, while equipment operations net sales increased by 14% to $10.6 billion. However, net income for the quarter dipped to $1.1 billion, reflecting pressures from higher production costs and tariffs. These results highlight the current challenges Deere faces in managing cost pressures while navigating industry cyclicality.