Bloomberg Intelligence Deere’s Disappointing Outlook Shows Farm Recovery Is Elusive
Nov 26, 2025
Chris Chialino, a Senior US Machinery Analyst, reveals Deere's challenging forecast and the ongoing struggles in the US farm economy. Woo Jin Ho discusses Dell's promising AI server market prospects while addressing HP's disappointing outlook and major workforce cuts. Diana Rosero Pena shares insights on Petco's earnings boost and service strategies in the pet industry. Meanwhile, Matt Britton highlights how AI is reshaping consumer behavior and the shopping experience for Generation Alpha, marking a shift in holiday shopping trends.
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Deere Points To A Deeper Ag Downturn
- Deere's guidance implies another 10% net income decline and a lower-for-longer North American ag cycle.
- Chris Chialino sees this as cyclical severity driven by volume falling to four-decade lows rather than structural change.
Three Forces Keep Farmers From Buying
- Weak crop prices, oversupply and high input costs extend the downturn for farmers.
- Trade uncertainty with China further prolongs the cycle and reduces farmer buying confidence.
Look For China And Crop Prices To Signal Recovery
- Watch crop-price stabilization and consistent Chinese buying for a recovery signal.
- Only when China consistently purchases will farmers regain confidence to replace aged equipment.
