Brokers Offer Predictions for Caterpillar FY2026 Earnings

Caterpillar Inc. (NYSE:CAT) – Analysts at Erste Group Bank lifted their FY2026 earnings estimates for Caterpillar in a research report issued to clients and investors on Thursday, August 27th. Erste Group Bank analyst H. Engel now expects that the industrial products company will earn $27.50 per share for the year, up from their previous estimate of $24.78. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $27.14 per share.

A number of other research analysts have also weighed in on CAT. Citigroup raised their target price on Caterpillar from $1,020.00 to $1,100.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. UBS Group increased their price target on Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Barclays raised their price objective on Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research note on Thursday, August 6th. Argus lifted their price objective on shares of Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Finally, Royal Bank Of Canada increased their target price on shares of Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $995.52.

Caterpillar Price Performance

CAT stock opened at $797.72 on Tuesday. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The business has a 50-day simple moving average of $889.47 and a two-hundred day simple moving average of $838.20. The company has a market capitalization of $366.69 billion, a P/E ratio of 34.33, a price-to-earnings-growth ratio of 1.40 and a beta of 1.60. Caterpillar has a 52-week low of $410.52 and a 52-week high of $1,073.46.

Caterpillar (NYSE:CAT) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same period in the previous year, the firm posted $4.72 earnings per share. The firm’s revenue for the quarter was up 23.7% on a year-over-year basis.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were paid a $1.63 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar’s dividend payout ratio is currently 28.06%.

Hedge Funds Weigh In On Caterpillar

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Axxcess Wealth Management LLC raised its position in shares of Caterpillar by 2.8% in the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company’s stock worth $12,844,000 after buying an additional 604 shares in the last quarter. DSG Capital Advisors LLC bought a new position in Caterpillar in the 1st quarter worth about $1,226,000. Cornerstone Planning LLC purchased a new stake in shares of Caterpillar in the 4th quarter valued at about $4,517,000. RiverFront Investment Group LLC boosted its position in shares of Caterpillar by 21.1% during the 4th quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company’s stock valued at $5,107,000 after acquiring an additional 1,552 shares during the last quarter. Finally, Larson Financial Group LLC grew its holdings in shares of Caterpillar by 73.6% during the fourth quarter. Larson Financial Group LLC now owns 12,915 shares of the industrial products company’s stock worth $7,399,000 after purchasing an additional 5,476 shares in the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: July durable-goods orders rose 1.1%, suggesting a manufacturing rebound that could support demand for Caterpillar’s construction, mining and industrial equipment. CAT was identified as one of several industrial stocks positioned to benefit. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Positive Sentiment: Erste Group Bank reportedly expects stronger earnings for Caterpillar, adding to the constructive analyst outlook surrounding the company. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Caterpillar’s power-generation business is benefiting from rising electricity demand tied to data centers and artificial intelligence. Recent coverage points to a first-ever quarterly sales total above $20 billion and identifies power generation as an increasingly important growth engine. Forget the Industry Labels: Chevron and Caterpillar Are Both Betting on the AI Power Boom
• Positive Sentiment: The company is applying its autonomous-mining expertise to industrial AI deployment, including field-support tools such as the Cat AI Assistant. Caterpillar also committed $100 million to AI and robotics workforce training, which could improve productivity and strengthen its technology positioning. Caterpillar Commits $100 Million to AI and Robotics Training
• Neutral Sentiment: Wall Street’s average brokerage recommendation remains bullish, but the coverage notes that sell-side ratings are often overly optimistic and may have limited predictive value for CAT’s performance. Is Caterpillar a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: At a high earnings multiple, Caterpillar is increasingly being valued like a technology-growth company. That raises the risk of pressure on the stock if AI-related growth, power-equipment demand or earnings forecasts fail to exceed expectations. How AI Power Demand Transformed Caterpillar into a High-Multiple Tech Play

Caterpillar Company Profile

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.