Deere Calls 2026 the Bottom as Caterpillar Rides Energy Growth Past Estimates

1 hour ago 1

William Temple

Wed, December 10, 2025 astatine 10:59 AM CST 4 min read

An infographic titled 'STOCK COMPARISON: CAT vs DE,' comparing Caterpillar (CAT) and Deere & Company (DE) fiscal performance. Caterpillar, highlighted successful yellowish connected the left, shows a 17.3% operating margin, diversified strengths, and a steadier outlook, with illustrations of operation equipment. Deere, highlighted successful greenish connected the right, shows a 12.6% operating margin, weakness from an cultivation downcycle, and an outlook babelike connected recovery, with illustrations of workplace and forestry equipment. A barroom illustration astatine the bottommost reinforces CAT's higher operating borderline compared to DE's.

Caterpillar bushed Q3 estimates with gross of $17.64B contempt operating borderline falling to 17.3% from 19.5%.
Deere’s full-year nett income dropped 29% to $5.03B arsenic Small Agriculture operating nett collapsed 89%.
Management expects 2026 to people the bottommost of the cultivation rhythm with nett income guidance of $4.00B to $4.75B.
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Caterpillar (NYSE: CAT) and Deere & Company (NYSE: DE) some reported results showing the aforesaid headwinds hitting successful precise antithetic ways. Caterpillar bushed estimates with humble net pressure. Deere missed badly, with full-year nett income down 29% arsenic the cultivation downcycle crushed halfway segments.

Caterpillar posted Q3 gross of $17.64 billion, beating the $16.77 cardinal estimation by 5%. Adjusted net per stock came successful astatine $4.95, supra the $4.52 consensus, though down 4.3% from $5.17 a twelvemonth earlier. Operating borderline fell from 19.5% to 17.3% arsenic manufacturing costs and tariffs spot into profitability. CEO Joe Creed pointed to "resilient request and focused execution," with Energy & Transportation starring astatine 17% income maturation to $8.40 billion. Construction Industries grew 7%, and Resource Industries added 2%. Operating currency travel of $3.7 cardinal funded $1.1 cardinal successful dividends and buybacks.

Deere reported Q4 gross of $12.39 billion, up 14.5% twelvemonth implicit year, but full-year nett income dropped 29% to $5.03 billion. Production & Precision Agriculture saw a 10% income summation to $4.74 cardinal but operating nett fell 8% owed to higher accumulation costs and tariffs. Small Agriculture & Turf operating nett collapsed 89%. Construction & Forestry was the agleam spot, with income up 27% to $3.38 cardinal and operating nett up 6%. CEO John May acknowledged "challenges and uncertainty" but emphasized "structural improvements" and called 2026 "the bottommost of the ample ag cycle."

Segment	CAT	DE
Core Strength	Energy & Transportation (+17%)	Construction & Forestry (+27%)
Biggest Weakness	Margin compression (220 bps)	Small Ag nett down 89%
Operating Margin	17.3%	12.6%

Caterpillar's three-segment exemplary spreads risk. Energy & Transportation maturation offset softer mining demand, and operation stayed steady. The 17.3% operating margin, portion down, inactive reflects pricing powerfulness and operational discipline.