Caterpillar (NYSE:CAT) Issues Earnings Results, Beats Expectations By $0.14 EPS

Caterpillar (NYSE:CAT) issued its quarterly earnings results on Thursday. The industrial products company reported $7.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.06 by $0.14, FiscalAI reports. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The business had revenue of $20.68 billion for the quarter, compared to the consensus estimate of $20.76 billion. During the same quarter in the prior year, the business posted $4.95 earnings per share. The firm’s quarterly revenue was up 17.3% compared to the same quarter last year.

Here are the key takeaways from Caterpillar’s conference call:

• Record third-quarter performance: Sales and revenues rose 17% to $20.7 billion, while adjusted profit per share increased 45% to $7.20. Caterpillar said strong volume and favorable pricing drove results across its three primary segments.
• Backlog and Power & Energy demand remain exceptionally strong: Backlog reached a record $78 billion, up 96% year over year, with large reciprocating-engine orders extending into 2029 and turbine orders into 2030. Data-center, cloud-computing, AI, prime-power, and oil-and-gas demand are supporting growth, although capacity remains the key constraint.
• Full-year outlook was maintained: Caterpillar continues to expect 2026 sales growth in the mid-to-high teens and MP&E free cash flow in the top half of its $6 billion-$15 billion target range. However, excluding tariff recoveries, adjusted operating margin is expected near the bottom of its target range because of tariffs, freight, capacity-expansion costs, and higher investment spending.
• Fourth-quarter growth will face a difficult comparison and inventory headwind: The company expects moderate year-over-year sales growth, with Construction Industries dealer inventory projected to decline about $1.6 billion, creating an approximately $1 billion volume headwind versus the prior year. Capacity ramp-up and operational challenges also limit near-term growth in Power & Energy and Resource Industries.
• Cash generation and customer credit quality remain strong: Third-quarter MP&E free cash flow was $3.8 billion, and Caterpillar returned $2 billion to shareholders through buybacks and dividends. Cat Financial reported past-due accounts of just 1.31%, the lowest level recorded since 1998, while strategic investments are expanding engine, compact-equipment, and autonomous-hauling capacity.

Caterpillar Price Performance

Shares of CAT stock traded down $66.17 during trading hours on Thursday, reaching $647.22. The company’s stock had a trading volume of 7,101,119 shares, compared to its average volume of 2,840,265. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. Caterpillar has a fifty-two week low of $537.08 and a fifty-two week high of $1,073.46. The company has a market capitalization of $297.51 billion, a price-to-earnings ratio of 27.85, a PEG ratio of 1.18 and a beta of 1.58. The firm’s 50 day simple moving average is $790.42 and its 200-day simple moving average is $807.41.

Caterpillar Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be issued a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar’s dividend payout ratio (DPR) is currently 28.06%.

Insider Buying and Selling at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the sale, the chief executive officer directly owned 34,555 shares of the company’s stock, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.33% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research firms have recently weighed in on CAT. Royal Bank Of Canada upped their target price on Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research report on Wednesday, August 5th. Citigroup decreased their price target on Caterpillar from $1,100.00 to $950.00 and set a “buy” rating on the stock in a research report on Monday, October 12th. Freedom Broker raised Caterpillar from a “hold” rating to a “buy” rating and set a $980.00 price target for the company in a research note on Thursday, September 10th. Oppenheimer reaffirmed an “outperform” rating and set a $1,009.00 price objective on shares of Caterpillar in a research report on Thursday. Finally, Needham & Company LLC set a $980.00 price objective on shares of Caterpillar in a research note on Thursday, September 10th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, Caterpillar presently has a consensus rating of “Moderate Buy” and a consensus target price of $947.42.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Adjusted earnings per share rose to $7.20 from $4.95 a year earlier and exceeded analysts’ $7.06 consensus. Sales and revenue increased 17% to $20.7 billion, while Caterpillar generated stronger volume and pricing. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Demand remains robust in Power & Energy, with power-generation sales reportedly increasing about 30% as data centers drive demand for turbines and large engines. Caterpillar also cited a record backlog of approximately $78 billion, supporting future revenue visibility. Caterpillar Q3 2026 Earnings Call Transcript
• Neutral Sentiment: The company returned $2.0 billion to shareholders through dividends and share repurchases during the quarter. Earlier analyst price targets remain well above the current trading level, although these targets may not reflect the latest outlook. Caterpillar Earnings Report
• Negative Sentiment: Revenue was slightly below estimates of $20.76 billion, and management maintained a relatively moderate growth outlook rather than raising guidance. Investors had expected a stronger forecast after the recent rally, so the unchanged outlook overshadowed the earnings beat. Caterpillar Sticks to Annual Sales Forecast Amid Cost Pressures
• Negative Sentiment: Tariff-related expenses, rising inventories and broader weakness in AI-linked stocks added to investor concerns about margins and the sustainability of Caterpillar’s growth premium. The market reaction indicates that expectations had been priced for a more substantial upgrade to the outlook. Caterpillar Tumbles as Tariff Costs and Rising Inventories Overshadow Earnings

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.