Good morning. I'm John May, Chairman and CEO of Deere & Company, and I will be presiding over today's meeting. It's my privilege to welcome you to the 2026 Annual Meeting of Shareholders. The agenda currently presented on the screen outlines the order of events for today's meeting. Rules of conduct are also available on the meeting website, as are the proxy statement and annual report. Today, we'll begin by reflecting on John Deere's performance during 2025, reviewing key highlights from the year, and discussing prospects for 2026 and beyond. We'll proceed with the business portion of the meeting, where we'll discuss the items on which our shareholders have been asked to vote. Our meeting will conclude with a general discussion, during which I'll welcome your questions. We'll do our best to answer as many as possible in the time allowed.
In 2025, John Deere delivered another year of strong performance, reflecting a structurally more profitable and resilient business. Despite ongoing market challenges, including low commodity prices, high interest rates, and continued trade uncertainty, we remain dedicated to managing the areas within our control. This included further reducing field inventories and streamlining cost to match market conditions, while also making robust investments in research and development to drive future growth. Building on these efforts, we launched several exciting new products and solutions this year, reflecting our ongoing commitment to delivering value to our customers. From a financial perspective, Deere achieved net income of $5 billion on $45.7 billion in total net sales and revenues. Operating margins for our equipment operations were 12.6%, an increase of over 450 basis points from the 2016 trough.
These results highlight the structural margin improvements from our Smart Industrial operating model introduced five years ago. Deere delivered $18.50 in diluted earnings per share, nearly 4 x higher than during the prior trough, demonstrating our ability to navigate a complex economic landscape while consistently delivering value to our shareholders. Leading the way was our production and precision ag business, with net sales of $17.3 billion and operating profit of $2.7 billion. It also delivered strong operating margins despite challenging end markets, reaching over 15% for the year. Small Ag and Turf reported net sales of $10.2 billion and achieved an operating profit of more than $1.2 billion. Construction and Forestry generated $11.4 billion in net sales and an operating profit exceeding $1 billion.
Financial Services contributed $890 million in net income, while effectively meeting the unique financing needs of our customers and dealers worldwide and making strategic moves to enable future growth. Our strong financial performance and prudent capital allocation have allowed us to sustain robust investments in research and development, as well as new product capital expenditures. These strategic investments have strengthened our technology stack, enabling us to deliver innovative solutions designed to meet current customer needs while proactively addressing anticipated future challenges. They also led to returning $2.9 billion to shareholders in 2025 through dividends and share repurchases, demonstrating our commitment to shareholder value. At the heart of our achievements are our people, I want to extend my heartfelt gratitude to our employees for their unwavering commitment to our customers and our company.
Their hard work and resilience have been instrumental in advancing our strategy and driving our performance, even in the face of significant challenges. Over the past year, our markets have faced continued headwinds, forcing us to make some tough operational decisions and putting our discipline and agility to the test. Even with these challenges and rapid changes, our teams and our factories, engineering centers, dealerships, branches, offices, and in the field displayed remarkable resilience. I'm truly proud of how they met these obstacles with determination and strength. I also want to recognize our dedicated dealers, who consistently deliver excellent experiences and service to our customers. Every day, they work hard to keep our customers up and running and make sure essential tasks are completed efficiently on farms and job sites.
They've also shown impressive execution by effectively managing inventory levels despite difficult market conditions, which positions us well for future shifts in the business cycle. In addition, they continue to develop and enhance their technical capabilities by leveraging digital tools, which are essential for the broad implementation of precision technologies and for delivering even greater value to our customers. In 2025, we reached several significant milestones within our core initiatives. Today, over 1 million machines are connected worldwide, and the John Deere Operations Center now spans 500 million engaged acres. This industry-leading digital platform empowers customers to enhance productivity, improve operational efficiency, and make informed, data-driven decisions for their businesses. Additionally, the number of highly engaged acres, whose unique acres that undergo multiple production steps and include value-added activities such as workflow planning, machine monitoring, or variable rate planting prescriptions, has doubled in just three years.
Over the past year, we also expanded operations center to include turf, construction, and road building, demonstrating how effectively our centralized technology stack integrates into new segments of our business. In fact, more than 3,000 road-building customers were onboarded last year alone. Continuing our focus on innovation, our Ag and Turf division introduced several innovative products in 2025. Among these were the autonomous 8RX and 9RX tractors, along with retrofit autonomy kits for tillage that can be installed on existing fleets. We also launched the new F9 1000 self-propelled forage harvester, the CF18 corn head, new planter sensing tools, and technology upgrades for our combine and sprayer portfolios. As part of our journey to reducing customer cost and environmental footprint, we also introduced a fully battery-powered tractor.
In the digital domain, we unveiled John Deere Operations Center PRO Service, which provides customers with innovative, cost-effective, self-repair solutions not previously available. In addition, we made significant strides in driving market adoption of our advanced technologies, consistently building momentum throughout the year. Much of this success can be attributed to the Precision Essentials bundle, which provides customers with the base layer of our technology stack, equipping them with integrated guidance, connectivity, and onboard computing capabilities. During the past two years, over 24,000 kits have been ordered throughout North America, South America, Europe, and Australia as of the conclusion of fiscal year 2025. This foundational technology has also helped 3,300 new organizations join the John Deere Operations Center. JDLink Boost is another powerful example of our progress in base precision.
Leveraging Starlink-powered satellite connectivity, this solution ensures machines remain connected even in regions where cellular networks are unreliable. We launched JDLink Boost in Brazil and the U.S. just over a year ago, global demand has been strong, resulting in more than 8,000 orders in fiscal year 2025. Building on this momentum, we're advancing automation by introducing cutting-edge precision for combines, which gets us to the doorstep of autonomy. Both Harvest Settings Automation and Predictive Ground Speed Automation are attracting significant interest from our customers. In its first year, Harvest Settings Automation achieved an impressive adoption rate of over 90% on North American combines, globally, operators use this technology more than 60% of their time in the cab this year, successfully covering over 5 million acres.
Likewise, Predictive Ground Speed Automation has the potential to transform the harvesting process by boosting throughput, measured in bushels per hour, by nearly 30%. Finally, we've begun accepting orders for spring delivery of our autonomous row crop tillage solution, designed to help customers complete tasks efficiently and on schedule, even during labor shortages. This innovative technology has already demonstrated its capability by autonomously covering more than 200,000 acres through demonstrations and customer-paid pilot programs over the past three years. Our advancements aren't limited to agriculture. We're also achieving significant progress in road construction and at building sites. In 2025, adoption of our precision grading technology advanced quickly. In fact, revenue for our SmartGrade products grew more than 20% despite lower overall equipment sales.
For our forestry customers, the new H Series harvester and forwarders have improved productivity and precision in our wheeled cut-to-length segment. Wirtgen introduced over 40 new innovations for the road building sector at the bauma Trade Show in Munich. Notable advancements include the X-250 milling machine and the expansion of its digital solutions portfolio. All of these products and solutions are designed to enhance job performance while improving safety and productivity. We expect fiscal year 2026 to be exciting for our Construction and Forestry division, with the upcoming launch of new Deere-designed and produced excavator models at ConExpo in just a few months. At John Deere, we know that delivering exceptional value starts with our people. Attracting top talent is fundamental to developing outstanding products and innovative solutions.
For nearly 200 years, our progress has been built on a foundation of integrity, quality, humanity, commitment, and innovation, values that inspire people to give their best. We believe our teams flourish because of their unique backgrounds and rich experiences, fueling innovation and enabling us to consistently deliver high-quality solutions for our customers. We strive to cultivate an environment where every employee feels valued, included, and heard. To support our people at every stage of their careers, we offer a wide range of opportunities, including apprenticeships, internships, training, upskilling programs, and leadership development to help them grow and succeed. Our commitment to responsible corporate citizenship also remained unwavering. In 2025, we invested $52.8 million in civic initiatives, demonstrating our dedication to making a real, lasting difference in the communities we serve.
John Deere employees brought this commitment to life, volunteering more than 278,000 hours across thousands of nonprofit organizations worldwide. Their generosity and spirit of service reached communities on nearly every continent. In John Deere communities, our support also provided 11.5 million meals, helping about 2 million people. In addition, through our multi-year partnerships with The Nature Conservancy and One Acre Fund, we expect to restore 48,000 acres by planting nearly 12 million trees over the duration of the program. Together, these efforts reflect our belief that when we invest in our communities, we help build a stronger, more sustainable future for all. Upon review, 2025 was characterized by significant uncertainty and volatility throughout the year. Through it all, our more than 70,000 employees showed outstanding resilience, rising to every challenge.
Even in the face of global trade disruptions and declining volumes, our dedicated teams delivered impressive results with unwavering determination. Thanks to their efforts, we achieved over $5 billion in net income, driven by the robust improvements enabled by our Smart Industrial operating model. Significant progress was made on key initiatives: expanding connected machines, increasing engaged acres, and extending the John Deere Operations Center to additional production systems. We launched new solutions to deliver greater value to our customers and enhance their operations. Our dealer channel also performed strongly, and inventory levels saw substantial improvement. We believe our successful execution in 2025 by both our employees and our dealers has set us up well for what lies ahead. As we look to 2026, I feel strongly that continued discipline and hard work will further enhance our position for the future.
We remain confident that Smart Industrial is the right strategy, firmly rooted in our commitment to helping customers accomplish more with fewer resources. With strong synergies across our robust equipment portfolio, vertically integrated technology stack, leading digital operating system, world-class dealer network, and the infrastructure needed to drive adoption and maximize the impact of our innovative solutions, we firmly believe Deere is well-positioned to unlock new value for our customers. Building on our strong execution in 2025, we're committed to further accelerating the delivery of customer value for the rest of the decade, fueling Deere's growth and shaping our continued success. On behalf of our management team and board of directors, I want to thank our employees, dealers, and suppliers for your steadfast dedication and determination. I also want to extend my gratitude to our shareholders for your continued support and trust in our company and vision.
As we move forward, we'll continue to innovate on behalf of our customers and redefine industry standards as we strive to achieve our higher purpose: We run so life can leap forward. Let's proceed to the business portion of the agenda. I have an affidavit from Broadridge Financial Solutions, the distribution agent, stating that the notice of this meeting, the notice of the internet availability, the proxy statement, and the annual report were mailed to all shareholders as of the record date for this meeting. The inspectors of election for the meeting are Bobby Strode and Christopher Seibert, Deere & Company Investor Relations, and Greg Malatesta, representing Broadridge Financial Solutions, Inc., independent inspector of election. They have advised me that based on the proxies received by 5:00 P.M. yesterday, a majority of the shares entitled to vote are represented at this meeting, either in person or by proxy.
Therefore, a quorum is present. I am pleased to officially call the meeting to order. I would like to thank the shareholders for their outstanding response to our request for proxies. A list of shareholders has been made available for inspection by any shareholder for 10 days and will remain available until the close of the meeting. Before proceeding to the items to be voted on today, I would like to take a moment to recognize Michael O. Johanns, who is not standing for re-election today. Since joining the Deere board in 2015, Mike has been a valued member, and I want to express my gratitude for his unwavering dedication and the significant contributions he's made during his tenure. We sincerely thank him for his outstanding service to our company. In addition, we're deeply saddened by the passing of Sherry M. Smith in 2025.
We remember her with sincere gratitude for her 14 years of service as a member of our board of directors. Sherry led with kindness and sincerity, and we were privileged to work alongside her. We remain grateful for her steadfast guidance, thoughtful leadership, and dedicated years of service to John Deere. I now invite Kellye Walker, the company's Chief Legal Officer and Corporate Secretary, who will act as Secretary for this meeting, to present the proposals that are up for vote today. The polls are open for voting and will close prior to the inspector's report on preliminary results.
Thank you, Mr. Chairman. Our first item of official business this morning is the election of directors. The persons recommended by the board's Corporate Governance Committee and nominated by the board of directors were listed in the proxy statement and are as follows in alphabetical order: Leanne G. Caret, Tamra A. Erwin, R. Preston Feight, Alan C. Heuberger, L. Neil Hunn, John C. May, Gregory R. Page, Brian Sikes, Dmitri L. Stockton, and Sheila G. Talton. As indicated in the proxy statement, notice of intent to nominate additional persons for election to the board of directors must be provided in advance of this meeting in accordance with the procedures set forth in the company's bylaws. We have not received any additional nominees. Next, as indicated in item two in the proxy statement, a non-binding advisory vote on executive compensation is submitted for shareholder vote.
The board recommends a vote to approve the non-binding advisory resolution on executive compensation. Next, as indicated in item three, the Audit Review Committee of the board has approved the selection of Deloitte & Touche LLP to serve as the company's independent registered public accounting firm. They will be responsible for auditing Deere's financial statements and internal controls over financial reporting for the 2026 fiscal year. The Audit Review Committee, along with the board, requests that shareholders ratify this appointment. Shareholder approval to ratify the appointment requires the affirmative vote of a majority of the shares present or represented and entitled to vote at the meeting. The board recommends a vote to ratify the appointment of the independent registered public accounting firm. Next, items four, five, and six are shareholder proposals. All shareholder proponents have been provided with a copy of the rules of conduct for this meeting.
These rules allocate three minutes for each proponent to present their proposal and require that their remarks remain focused on the subject matter of the proposal being presented. Please note that failure to adhere to these guidelines may result in the proponent's audio being muted. I now invite the shareholder who has submitted Proposal 4, regarding a report on the return on investment of emission reduction goals, to submit the proposal.
Good morning, fellow shareholders. My name is Steve Milloy , and I am the Executive Director of the Free Enterprise Project at the National Center for Public Policy Research. I urge you to support Proposal Number 4, the emissions reduction ROI audit. Ladies and gentlemen, let us dispense with this climate nonsense once and forever. Even if you believe in the climate hoax, the simple math is that Deere & Company could stop selling gas-powered equipment today and forever, and it would make no discernible difference to the atmosphere, average global temperature, the weather, or the climate. In fact, the simple math is that the United States itself could go dark today and forever, and even that would make no discernible difference to global temperature, the weather, or the climate.
For those who can do more than just simple math, it's not at all clear that emissions have had any effect whatsoever on weather or climate. Is it possible that Deere can make money off the climate hoax by selling pointlessly more expensive green equipment that isn't nearly as good as the gas-powered equipment it is intended to replace? The car industry just tried that, and it lost tens of billions of dollars and has now all but abandoned electric vehicles. Is Deere management smarter than the managements of Ford, GM, and Stellantis? I doubt it. Worse, all this green junk just makes our country that much more dependent on communist China, where parts and components are made. If I were in management, I'd be more worried about relying on communist China than I would be about the weather 100 years from now.
It's up to us as shareholders to get management's head out of the clouds and back down to Earth. Management says it has carefully established goals to reduce emissions. It says that understanding ROI would not meaningfully benefit shareholders. You know, if management was actually careful and did its due diligence, it would not have climate goals at all. It would know that climate is a hoax. That management is not willing to disclose the ROI of its emissions goals tells you everything you need to know about how valid they are. Management should show us how it plans to make money by selling pointlessly more expensive equipment sourced in communist China and designed for the climate hoax. For the protection of our investment, if not the security of our country, we urge a vote for Proposal number four. Thank you.
The board recommends a vote against the shareholder proposal regarding a report on the return on investment of emission reduction goals. I now invite the shareholder who has submitted Proposal 5, regarding shareholder right to act by written consent, to submit the proposal.
Hello, this is John Chevedden. The written consent, Proposal 6, deserves a vote of support. Shares request that the board of directors take the necessary steps to permit written consent by the shareholders entitled to cast the minimum number of votes that would be necessary to authorize an action at a meeting at which all shareholders entitled to vote thereon were present and voting, without any restriction based on length of stock ownership. This includes shareholder ability to initiate any appropriate topic for written consent. Acting by written consent is all the more important at Deere due to the restricted right of Deere shareholders to call a special shareholder meeting. Currently, all Deere shareholders who have held their shares for less than a full year are disqualified from participating and calling for a special shareholder meeting.
Deere fails to understand that written consent is structured only for issues that have overwhelming shareholder support. Written consent is a shareholder right that requires the formal backing of a majority of all Deere shares outstanding. This majority support requirement, in reality, is much more than majority support because it is not economically possible to contact a significant percent of Deere shares to get their formal backing. Thus, for an issue to get majority support from all Deere shares outstanding under written consent, it would need 70%-80% support from the Deere shares that it is economically possible to reach. Yet Deere incorrectly gives the impression that written consent gives too much power to a minority. The only role for a minority with written consent is to initiate a proposal that has a chance of obtaining overwhelming 70%-80% Deere shareholder support.
Unless there is 70%-80% Deere shareholder support, an issue fails. It is all the more important to have written consent at Deere because Deere has disqualified all shareholders who have owned their Deere shares for less than a full year from having any right to participate in calling for a special shareholder meeting. This proposal topic won 51% support at CDW Corporation in 2025, CDW is just like Deere, which also disqualified all shares not owned for a full year, from any right to participate in calling for a special shareholder meeting. Deere is apparently sure that its shareholders have any right to consider shareholder proposals. Deere published a 1,000-word statement against all shareholder proposals in its 2026 proxy. Also published lengthy opposition statements after each shareholder proposal.
Deere appears to imitate ExxonMobil in its all-encompassing opposition to any shareholder proposal. Tamra Erwin, Chair of the Deere Governance Committee, is ultimately responsible for Deere's apparent all-encompassing opposition to any shareholder proposal. The written consent, Proposal 6, deserves a vote of support. Thank you.
The board recommends a vote against the shareholder proposal regarding shareholder right to act by written consent. I now invite the shareholder who has submitted Proposal 6, regarding a report on faith-based business resource groups, to submit the proposal.
Good morning, John Deere shareholders. I'm Isaac Willour, Director of Corporate Engagement at Bowyer Research, filer of Proposal 6. This proposal asks John Deere to uphold its commitments to equal treatment and political neutrality by allowing religious employees to form faith-based business resource groups. John Deere already supports a wide range of business resource groups. These groups provide connection, mentorship, and professional support for employees who share certain experiences or identities. However, one category of employees is currently excluded, those whose primary community identity is faith. For many employees, religious belief isn't a private detail, it's a core part of their lives, their values, and often their motivation to serve their communities. Excluding religious employees from forming a BRG while allowing other identity-based groups sends a perhaps unintended but unmistakable message: Some identities are fully welcome and worthy of official company support, others are not.
Deere's opposition statement argues that the proposal is intended to advance the political and social views of the proponent, but this effectively concedes the underlying point. Such policies are about social views. We don't want social views reflected in corporate policy. We want neutrality and business focus. John Deere has repeatedly affirmed its commitment to political and ideological neutrality in its workforce policies. Allowing certain demographic groups to organize officially while excluding religious groups creates the appearance of ideological favoritism, something no neutrality framework can sustain. Recent federal actions, including executive orders, have emphasized the need to protect individuals from anti-religious discrimination in the workplace.
If Deere supports identity-based employee groups, religious identity should be treated with the same fairness as every other identity. Faith-based BRGs are common and uncontroversial across corporate America, particularly for brands that have made public commitments to political neutrality. To its credit, John Deere has made those commitments, and shareholders applaud the company for it. Now it's time for John Deere to stand by the ramifications of a commitment to political neutrality. Proposal 6, and its concerns about equal treatment of religious employees at Deere, is a good place to start. Thank you.
The board recommends a vote against the shareholder proposal regarding a report on faith-based business resource groups. No further items have been submitted pursuant to the company's bylaws. The Chairman has declared the nominations and proposals to be voted on closed, and we will now proceed with voting. If you have submitted a proxy card and would like your shares to be voted as indicated, there is no need to cast a ballot this morning. If you have not voted or if you wish to change your vote, please follow the voting instructions on your screen. The ballot is for voting or changing your vote regarding Directors Caret, Erwin, Feight, Heuberger, Hunn, May, Page, Sikes, Stockton, and Talton. It is for voting or changing your vote regarding the non-binding advisory vote on executive compensation.
It is for voting or changing your vote regarding the ratification of Deloitte & Touche, LLP as the company's independent registered public accounting firm. It is for voting or changing your vote on the shareholder proposals. Preliminary results of the voting will be announced before the end of the meeting.
Thank you, Madam Secretary. The next order of business will be comments from the independent registered public accounting firm. Deloitte & Touche is engaged by the Audit Review Committee of the Board of Directors to conduct the annual audit of our financial statements and the effectiveness of our internal controls over financial reporting. Their representative with us today is Ms. Claudine Hollock, Deloitte Lead Client Service Partner for the Deere & Company audit. Ms. Hollock will now make her statement.
We have conducted our audit of the financial statements of Deere & Company and subsidiaries and the effectiveness of the company's internal control over financial reporting. Our opinion, dated December 18th, 2025, is included in the company's 2025 annual report, which was made available to the shareholders in advance of this meeting. Our opinion contains no exceptions or qualifications. The scope of our audit was designed by us to meet the requirements of the standards of the Public Company Accounting Oversight Board. It was reviewed in advance with the Audit Review Committee of the Board of Directors, and it included tests of the accounting records at significant company locations. No restrictions were placed on the scope of our audit, and we had full access to and the cooperation of the board of directors, management, and the financial staff.
I now declare the polls closed. We will now hear the preliminary report from the Inspectors of Election. The preliminary report is based on all proxies returned as of 5:00 P.M. yesterday. After the meeting, the inspectors will count any additional proxies we received up to the time the polls closed. The final report of the inspectors will be included in the records of the meeting, and the final results will appear in a Form 8-K filing within four days of the votes being finalized. Mr. Greg Malatesta, Account Executive representing Broadridge Financial Solutions, Inc, Independent Inspector of Election, will now give the preliminary report.
Mr. Chairman, we report that subject to final validation, 237,800,385 shares, or not less than 87.72% of the shares entitled to vote, are represented at this meeting in person or by proxy. The nominees for director included in the proxy statement received not less than 190,181,380 votes, representing 91.94% of the votes cast. There were 190,019,992 votes cast in favor of the non-binding vote on executive compensation, representing 91.86% of the shares present in person or represented by proxy and entitled to vote on this proposal.
There were 225,223,388 votes cast in favor of the ratification of the appointment of Deloitte & Touche, LLP, as Deere's independent registered public accounting firm for fiscal 2026, representing 94.71% of the shares present in person or represented by proxy and entitled to vote on this proposal. There were 2,048,273 votes cast in favor of the shareholder proposal with respect to a report on the return on investment of emission reduction goals, representing 0.99% of the shares present in person or represented by proxy and entitled to vote on this proposal.
There were 79,109,248 votes cast in favor of the shareholder proposal with respect to shareholder right to act by written consent, representing 38.24% of the shares present in person or represented by proxy and entitled to vote on this proposal. There were 1,309,458 votes cast in favor of the shareholder proposal with respect to a report on faith-based business resource groups, representing 0.63% of the shares present in person or represented by proxy and entitled to vote on this proposal.
Thank you, Mr. Malatesta. Based on your report, I declare that the nominees for the board named in the proxy statement have been elected as directors. The non-binding advisory vote to approve executive compensation was approved. The ratification of the appointment of Deloitte & Touche as the company's independent registered public accounting firm was approved. The shareholder proposal with respect to a report on the return on investment of emission reduction goals was not approved. The shareholder proposal with respect to shareholder right to act by written consent was not approved. The shareholder proposal with respect to a report on faith-based business resource groups was not approved. That concludes the formal business of the meeting. I now declare the 2026 Annual Meeting of Shareholders adjourned.
At this time, I invite shareholders to present any questions concerning our company's business or matters affecting fellow shareholders in accordance with the rules of conduct, which are available on the meeting portal. I appreciate your engagement. If you wish to present a question or comment, please follow the instructions on the screen. In your submission, please include your name and place of residence, and confirm your status as a shareholder. I now open the floor for questions. Our first question today is: What kind of impact do you see tariffs having on operations this year, and will the Supreme Court decision help Deere? Thanks for the question. Our focus remains on running our business responsibly and continuing to deliver for our customers, employees, and stakeholders. Trade policy shifts can affect how manufacturers operate, but we are committed to strengthening U.S. manufacturing, growing American jobs, and enhancing global competitiveness.
Per the latest quarter, we estimate about $1.2 billion of direct tariff expense. We would not adjust or change our guidance at this point because the timing and probability of refunds are unknown. The possibility of new tariffs imposed to offset the IEEPA tariffs are also unknown. Our next question is, with the percentage of farmers decreasing, how will this affect Deere going forward, and will productivity enhancements make up the difference? How so? The challenge our farmers face, including less labor and fewer resources to grow the crops that feed, fuel, and clothe the world, sit at the heart of our Smart Industrial strategy. These challenges are the reason why, six years ago, we focused our organization on helping customers do more with less through Deere equipment, solutions, and integrated technologies.
As you heard at the beginning of this meeting, we're incredibly excited about the progress that we've made in these efforts over the last several years. Across every layer of our tech stack, from connectivity to digital to automation and to autonomy, we've brought new solutions to market that unlock tremendous value for our customers. We're seeing these solutions being adopted and utilized at rates that give us increased confidence in our ability to help growers unlock even more value going forward. Our next question relates to R&D, and if Deere will spend more than 5% of sales on R&D in 2026. Thanks for the question. We recently confirmed our guidance that research and development investments for fiscal year 2026 will be slightly up from last year.
Given our current sales guidance for the enterprise, that would equate to an R&D spend that rates between about 5% and 6% for this year. This level of investment is being fueled by the structural profitability improvements that we've made over the past few years. Our structurally higher margins across the cycle allow us to maintain high levels of investment that drive more innovation on behalf of our customers. In fact, this week at Commodity Classic and next week at CONEXPO, we're introducing several new solutions for both ag and construction that'll bring more productivity to our customers in these sectors. These new products are the direct result of continued through-cycle investment. Our next question is about the consideration of a stock split. We continue to be focused on creating value for our shareholders.
At this point, we are not considering a stock split. We will continue to monitor this topic in the future if we believe there is shareholder value. Thank you for your inquiries. Responses to questions related to the matters discussed that we did not address during the meeting will be provided within a week by correspondence to the respective shareholders who submitted those questions. That concludes the meeting. I would like to extend my heartfelt gratitude to all our shareholders, including our dedicated employees and retirees, for your continued support and for attending today. Thank you for joining us.