John Deere has lowered its expectations for South America in fiscal 2026, forecasting a 15% decline in tractor and combine harvester sales compared with the previous fiscal year.

The company disclosed the projections as part of its latest quarterly earnings report, reflecting continued pressure on the agricultural machinery market in the region.

Mixed Results Across Business Segments

According to the company, performance trends varied significantly among its divisions during the second quarter.

The Production and Precision Agriculture segment posted a 14% decline in revenue, totaling US$ 4.503 billion. John Deere attributed the decrease mainly to lower machinery sales volumes and higher production costs.

By contrast, the Small Agriculture and Turf division reported stronger results:

• Revenue increased 16% to US$ 3.485 billion

• Operating profit rose 25% to US$ 719 million

The Construction and Forestry business also delivered positive results, with revenue rising 29% to US$ 3.790 billion.

Market Context

The weaker outlook for South America reflects ongoing caution across the agricultural equipment industry, amid softer farm investment conditions and lower demand for high-horsepower machinery in several regional markets.

The projected decline in tractors and combines suggests that manufacturers continue to face a challenging operating environment in Latin America heading into fiscal 2026.