The maker of Fendt and Massey Ferguson ag equipment, AGCO, released its third quarter of 2026 results ahead of the opening bell in Oct. 29, reporting another quarter of declining sales, primarily driven by weaker demand in Latin America (LatAm), Europe, and the Middle East.
For the quarter ending Sept. 30, AGCO reported $2.3 billion in net sales, an 8.6% decline from the same quarter last year and an 11.54% drop from the previous quarter. Net sales totaled $7.2 billion for the first three quarters of 2026, a 0.7% increase compared to the first nine months of 2025.
Europe and the Middle East led declines in net sales with $1.306 billion, compared to $1.613 billion in the same quarter last year. Additionally, LatAm net sales declined from $345.5 in Q3 2025 to $292.3 in Q3 2026.
Additionally, North American net sales rose to $485.3 million in Q3 2026, compared to $359.9 million from the same quarter last year. Additionally, AGCO’s Asia Pacific business generated $178.8 million in net sales, compared to $157.1 million from the same quarter last year.
AGCO has adjusted its full-year guidance and now expects net sales of $9.8-10 billion, compared to its previous guidance of $10.1-10.2 billion given in Q2. The OEM lowered its outlook for Western Europe, LatAm, and North America due to market conditions.
“Lower farm income and uncertainty across global agricultural markets continued to weigh on farmer sentiment, with conditions softening further in EME and Latin America. We remain focused on what we can control: helping farmers improve their economics while strengthening our cost structure. Our fuel-efficient tractors, AI-enabled targeted spraying systems and autonomous solutions are designed to lower operating costs and improve returns for farmers. These actions are helping us navigate current conditions and position AGCO for the recovery,” Eric Hansotia, chairman, president, and CEO at AGCO, said in the earnings release.
AGCO’s stock rose following the quarterly results, trading at $106 in morning trading, up around 4.25% on the day.
From North American to Brazil: How AGCO is assessing the market
The quarterly results come as the broader ag machinery market continues to find its footing amid challenging farm economics globally.
In North America, tractor sales declined by 9% and combines by 10% for the first nine months of the year, according to industry analysis cited in the earnings report. Improving grain prices lifted farmer sentiment earlier in the quarter but have thus tapered off, Hansotia noted.
“North America had a pretty strong positive mood shift for a while. Farmers were able to sell off their remaining grain from last year’s harvest. They’re able to lock in next year’s grain price in the futures market into a nice market condition, and so there was good excitement. We were closing deals at Farm Progress Show and so on. That’s moderated since then as the grain prices have pulled back and their input costs have not. But still, North America is probably the most positive market globally,” said Hansotia in the Q3 earnings call.
Brazil’s ag economy is particularly challenged due to high interest rates and the credit environment, leading to declining machine sales. Brazilian tractor and combine sales dropped 17% and 38%, respectively, for the first nine months of 2026 compared to the same period last year, according to market data in the quarterly earnings report.
While the 2026 presidential election outcome has provided some certainty around agricultural policy, the “reality is that farmer economics are not good in Latin America right now,” Hansotia noted
“Despite the current pressure, Brazil remains a strategically important agricultural market, supported by its significant production base and growing importance to global grain supply,” he said.
