Caterpillar (NYSE:CAT) Posts Quarterly Earnings Results, Beats Estimates By $1.95 EPS

Caterpillar (NYSE:CAT) released its earnings results on Tuesday. The industrial products company reported $8.17 EPS for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95, FiscalAI reports. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same quarter in the previous year, the business earned $4.72 EPS. The business’s quarterly revenue was up 23.7% compared to the same quarter last year.

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

• Record quarterly performance: Caterpillar reported $20.5 billion in second-quarter sales and revenues, up 24% year over year, with adjusted profit per share rising 73% to $8.17. Backlog increased $9 billion sequentially to a record $72 billion.
• Full-year outlook raised: The company now expects 2026 sales and revenues to grow in the mid-to-high teens, with stronger growth anticipated across Power & Energy, Construction Industries, and Resource Industries. MP&E free cash flow is expected to be in the top half of its $6 billion-$15 billion target range.
• Strong power-generation demand: Power-generation sales to users rose 72%, driven by data-center, cloud-computing, and generative-AI demand. Caterpillar is restarting production of a 10-megawatt gas engine platform, adding approximately 1.5 gigawatts of capacity with shipments expected to begin in the fourth quarter.
• Growth investments and rental expansion: Caterpillar is expanding capacity, investing in technology and autonomy, and using its Major Projects dealer-owned rental venture to support large infrastructure, energy, manufacturing, and data-center projects. These initiatives are intended to drive longer-term growth but will increase depreciation, SG&A, and R&D expenses.
• Tariffs remain a material cost: Second-quarter tariff costs were approximately $400 million, while full-year 2026 tariff costs are now expected to be around $2.2 billion, excluding approximately $400 million of expected IEEPA recoveries recognized in the second quarter. Management expects the full-year adjusted operating margin, excluding those recoveries, to be near the bottom of its target range.

Caterpillar Stock Up 5.7%

Shares of NYSE:CAT traded up $47.14 during mid-day trading on Tuesday, reaching $877.17. 2,838,072 shares of the stock were exchanged, compared to its average volume of 2,915,600. The stock’s 50 day simple moving average is $923.52 and its 200-day simple moving average is $814.19. Caterpillar has a one year low of $405.46 and a one year high of $1,073.46. The company has a market cap of $404.02 billion, a P/E ratio of 43.63, a P/E/G ratio of 1.59 and a beta of 1.60. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be issued a dividend of $1.63 per share. The ex-dividend date is Monday, July 20th. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. Caterpillar’s dividend payout ratio is 32.45%.

Insider Activity at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of the stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the completion of the transaction, the insider owned 86,029 shares in the company, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Denise C. Johnson sold 12,605 shares of Caterpillar stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the sale, the insider owned 49,825 shares in the company, valued at $45,236,615.75. The trade was a 20.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 84,492 shares of company stock worth $77,567,548. 0.33% of the stock is currently owned by corporate insiders.

Institutional Trading of Caterpillar

A number of hedge funds and other institutional investors have recently modified their holdings of CAT. State Street Corp grew its stake in Caterpillar by 1.1% in the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company’s stock valued at $20,273,039,000 after purchasing an additional 385,204 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock valued at $3,860,457,000 after buying an additional 928,974 shares during the last quarter. Amundi grew its stake in shares of Caterpillar by 24.3% in the third quarter. Amundi now owns 2,375,710 shares of the industrial products company’s stock valued at $1,176,870,000 after buying an additional 464,036 shares in the last quarter. Raymond James Financial Inc. increased its holdings in Caterpillar by 5.2% during the third quarter. Raymond James Financial Inc. now owns 1,022,912 shares of the industrial products company’s stock worth $488,081,000 after buying an additional 50,502 shares during the last quarter. Finally, Bank of Montreal Can increased its holdings in Caterpillar by 14.7% during the fourth quarter. Bank of Montreal Can now owns 757,187 shares of the industrial products company’s stock worth $433,770,000 after buying an additional 96,762 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Large earnings and revenue beats: Caterpillar reported adjusted profit of $8.17 per share, versus the roughly $6.22-$6.25 analyst consensus, while sales and revenue rose 24% year over year to $20.5 billion, exceeding expectations near $19.3-$19.4 billion. Adjusted EPS increased sharply from $4.72 a year earlier. Caterpillar Reports Second-Quarter 2026 Results
• Positive Sentiment: AI-related demand is strengthening the power business: Rising construction of data centers is driving demand for Caterpillar’s engines, generators and other power-generation equipment. Continued strength in construction and mining equipment also contributed to higher sales and profit. Caterpillar Surges as Data Center Boom Drives Earnings Growth
• Positive Sentiment: Improved outlook and order visibility: Management raised its full-year revenue-growth forecast to the mid-to-high teens percentage range from the prior low-double-digit outlook. Reports also pointed to a record order backlog of approximately $63 billion, supporting expectations for continued demand. CAT Stock Rises on Earnings Beat and Revenue Forecast
• Positive Sentiment: Shareholder returns remain supportive: Caterpillar deployed $2.2 billion toward share repurchases and dividends during the quarter, reinforcing its strong cash-generation profile. The results also lifted the broader Dow as investors responded positively to industrial and AI-infrastructure spending trends. Caterpillar Stock Jumps as Company Sees Broadening Momentum
• Neutral Sentiment: The strong report follows a period in which CAT was pressured by an AI-related selloff. Investors may now focus on whether data-center demand and the sizable backlog can justify the stock’s elevated valuation and sustain the recent momentum.

Analyst Ratings Changes

A number of research firms recently commented on CAT. UBS Group reiterated a “neutral” rating and issued a $900.00 price objective on shares of Caterpillar in a report on Tuesday, June 2nd. Barclays boosted their target price on Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a research report on Friday, May 1st. Citigroup upped their price target on Caterpillar from $1,020.00 to $1,100.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Argus increased their price target on shares of Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Finally, Daiwa Securities Group boosted their price objective on shares of Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a report on Friday, May 1st. Thirteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $966.29.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.