DE · Earnings call · 2026Q3T · Full report

End-Market Demand Trends

DEERE & CO · 2026-08-20 · Importance 60 · Surprise 40 · In source text

Deere expects U.S. and Canada large agriculture equipment sales to decline 15% to 20% in fiscal 2026 as muted farm profitability, elevated input costs, commodity-price volatility, and crop-demand uncertainty constrain capital spending. Europe is expected to be approximately flat, while South America is expected to decline 15% to 20% because of elevated production costs and higher interest rates; Asia is expected to remain approximately flat. U.S. and Canada small agriculture and turf sales are expected to be flat to up 5%, supported by dairy, livestock, and mowing demand. Construction earthmoving sales are expected to increase 5% to 10%, compact construction sales 5%, and global roadbuilding approximately 10%, while global forestry is expected to decline 10% due to weak residential construction and lower log and lumber prices.

Key facts

• In the U.S. and Canada, large ag equipment industry sales for fiscal 2026 are expected to decline 15% to 20% year over year.
• U.S. and Canada small ag and turf industry sales for fiscal 2026 are expected to be flat to up 5%.
• Europe industry sales for fiscal 2026 are now expected to be approximately flat for the year.
• South America industry sales for fiscal 2026 are now expected to be down 15% to 20%.
• Asia industry sales for fiscal 2026 are expected to remain approximately flat.

Impact estimates