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

Posted by Brian Himes on Aug 4th, 2026

Caterpillar (NYSE:CAT – Get Free Report) issued its quarterly earnings data 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. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm’s quarterly revenue was up 23.7% on a year-over-year basis. During the same period last year, the business posted $4.72 earnings per share.

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 Performance

Shares of CAT traded up $53.53 during midday trading on Tuesday, reaching $883.56. The stock had a trading volume of 3,125,012 shares, compared to its average volume of 2,916,592. Caterpillar has a one year low of $405.46 and a one year high of $1,073.46. The firm has a market cap of $406.96 billion, a PE ratio of 43.93, a P/E/G ratio of 1.59 and a beta of 1.60. The firm has a 50 day simple moving average of $923.52 and a 200-day simple moving average of $814.19. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64.

Caterpillar Increases Dividend

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

Wall Street Analysts Forecast Growth

Several analysts have issued reports on CAT shares. Jefferies Financial Group lifted their price target on Caterpillar from $900.00 to $1,045.00 and gave the company a “buy” rating in a research note on Friday, May 1st. DA Davidson increased their price objective on Caterpillar from $650.00 to $845.00 and gave the stock a “neutral” rating in a report on Monday, May 4th. Weiss Ratings restated a “buy (b-)” rating on shares of Caterpillar in a research note on Friday, May 8th. Bank of America raised their price target on shares of Caterpillar from $930.00 to $989.00 and gave the stock a “buy” rating in a research note on Friday, May 1st. Finally, Erste Group Bank lowered shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, July 27th. Thirteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $966.29.

View Our Latest Analysis on CAT

Insider Activity at Caterpillar

In related news, CAO William E. Schaupp sold 360 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the transaction, the chief accounting officer directly owned 530 shares of the company’s stock, valued at approximately $480,180. The trade was a 40.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction on Monday, May 11th. The stock was sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the transaction, the insider directly owned 46,041 shares of the company’s stock, valued at approximately $42,210,388.80. This trade represents a 26.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 84,492 shares of company stock worth $77,567,548 in the last three months. 0.33% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Hohimer Wealth Management LLC increased its holdings in Caterpillar by 0.4% during the 4th quarter. Hohimer Wealth Management LLC now owns 3,680 shares of the industrial products company’s stock worth $2,108,000 after purchasing an additional 15 shares in the last quarter. PFC Capital Group Inc. boosted its position in shares of Caterpillar by 0.5% during the fourth quarter. PFC Capital Group Inc. now owns 3,317 shares of the industrial products company’s stock valued at $1,900,000 after buying an additional 16 shares during the last quarter. Paragon Capital Management LLC grew its holdings in Caterpillar by 0.6% during the fourth quarter. Paragon Capital Management LLC now owns 2,616 shares of the industrial products company’s stock worth $1,499,000 after buying an additional 16 shares in the last quarter. Hilltop Partners LLC raised its position in Caterpillar by 3.0% in the 4th quarter. Hilltop Partners LLC now owns 591 shares of the industrial products company’s stock valued at $338,000 after buying an additional 17 shares during the last quarter. Finally, CacheTech Inc. lifted its stake in Caterpillar by 1.6% during the 4th quarter. CacheTech Inc. now owns 1,341 shares of the industrial products company’s stock valued at $768,000 after acquiring an additional 21 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Trending Headlines about Caterpillar

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.

About Caterpillar

(Get Free Report)

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.