Zacks Research Lowers Earnings Estimates for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Stock analysts at Zacks Research reduced their Q4 2025 EPS estimates for Caterpillar in a research note issued to investors on Tuesday, August 19th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $4.47 per share for the quarter, down from their prior estimate of $4.54. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar’s Q1 2026 earnings at $4.34 EPS, Q3 2026 earnings at $4.85 EPS, FY2026 earnings at $19.60 EPS, Q1 2027 earnings at $4.53 EPS, Q2 2027 earnings at $5.29 EPS and FY2027 earnings at $20.76 EPS.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.88 by ($0.16). The business had revenue of $16.57 billion during the quarter, compared to the consensus estimate of $16.14 billion. Caterpillar had a net margin of 14.95% and a return on equity of 48.95%. The company’s quarterly revenue was down .7% compared to the same quarter last year. During the same period last year, the firm earned $5.99 EPS.

Several other equities research analysts have also issued reports on the stock. Oppenheimer boosted their price target on shares of Caterpillar from $395.00 to $483.00 and gave the company an “outperform” rating in a report on Thursday, July 17th. UBS Group raised shares of Caterpillar from a “sell” rating to a “neutral” rating and upped their target price for the stock from $272.00 to $357.00 in a report on Friday, May 16th. Evercore ISI raised shares of Caterpillar from an “in-line” rating to an “outperform” rating and set a $476.00 target price on the stock in a report on Tuesday. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of Caterpillar in a report on Monday, July 14th. Finally, Robert W. Baird upped their target price on shares of Caterpillar from $395.00 to $422.00 and gave the stock an “outperform” rating in a report on Friday, June 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $450.87.

Caterpillar Trading Down 0.8%

Shares of Caterpillar stock opened at $417.4240 on Friday. The firm has a market capitalization of $195.55 billion, a PE ratio of 21.23, a price-to-earnings-growth ratio of 2.51 and a beta of 1.40. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.81. The company’s fifty day moving average price is $404.15 and its two-hundred day moving average price is $357.31. Caterpillar has a 52-week low of $267.30 and a 52-week high of $441.15.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Monday, July 21st were paid a $1.51 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.41. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Monday, July 21st. Caterpillar’s payout ratio is presently 30.72%.

Insider Transactions at Caterpillar

In other Caterpillar news, insider Jason Kaiser sold 2,161 shares of the company’s stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $417.70, for a total transaction of $902,649.70. Following the transaction, the insider directly owned 8,632 shares in the company, valued at approximately $3,605,586.40. This represents a 20.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of the company’s stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $410.00, for a total transaction of $952,840.00. Following the transaction, the director owned 6,917 shares in the company, valued at approximately $2,835,970. The trade was a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CAT. Kilter Group LLC acquired a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $27,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $28,000. Family Legacy Financial Solutions LLC acquired a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $32,000. RiverPark Advisors LLC acquired a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $32,000. Finally, Harbor Asset Planning Inc. acquired a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $34,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Company Profile

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.