Caterpillar (NYSE:CAT) Reaches New 1-Year High on Earnings Beat

Caterpillar Inc. (NYSE:CAT) shares hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $656.75 and last traded at $657.79, with a volume of 83528 shares changing hands. The stock had previously closed at $643.28.

The industrial products company reported $5.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.52 by $0.64. The company had revenue of $19.13 billion during the quarter, compared to analysts’ expectations of $17.81 billion. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The firm’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $5.14 earnings per share.

Caterpillar Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th will be issued a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s dividend payout ratio is presently 31.01%.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 results topped estimates — adjusted EPS $5.16 vs. consensus ~ $4.5 and revenue $19.13B vs. ~$17.8B, driven by strength across segments. Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: AI/data-center demand lifted power-generation sales and is being cited as a new growth engine for Caterpillar’s gensets and solutions. Caterpillar flags $2.6 billion tariff hit in 2026, power equipment demand lifts quarter
• Positive Sentiment: Strategic alliance and purchase agreement to supply 2 GW of fast-response natural gas generator sets for a hyperscale AI campus (deliveries 2026–27), demonstrating pipeline visibility into large-scale data-center projects. American Intelligence & Power Forms Strategic Alliance with Caterpillar
• Positive Sentiment: Strong full-year cash generation ($11.7B enterprise operating cash flow) and $7.9B returned to shareholders in 2025 via buybacks/dividends — supports shareholder returns and valuation support. Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Cat Financial posted year-end results (standard disclosure for the finance arm) — provides transparency on receivables/financing but limited immediate market impact. Cat Financial Announces 2025 Year-End Results
• Neutral Sentiment: Analyst notes and previews warned that recent investments (capacity, service, technology) could pressure near-term profit despite higher revenue — worth watching for guidance and margin trajectory. Caterpillar Expected to Post Higher 4Q Revenue
• Negative Sentiment: Company flagged an estimated $2.6B tariff-related headwind in 2026 — a meaningful one-time/ongoing earnings drag that could offset some of the AI-driven upside. Caterpillar flags $2.6 billion tariff hit in 2026
• Negative Sentiment: Full-year adjusted EPS declined vs. prior year (reflecting weaker pricing/higher costs despite volume growth), highlighting that revenue beat doesn’t fully remove margin pressure concerns. Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results

Analysts Set New Price Targets

CAT has been the topic of several research reports. Wolfe Research increased their target price on Caterpillar from $470.00 to $670.00 and gave the stock an “outperform” rating in a research report on Friday, January 2nd. Bank of America increased their price objective on shares of Caterpillar from $650.00 to $708.00 and gave the company a “buy” rating in a research report on Wednesday, January 14th. UBS Group boosted their price objective on Caterpillar from $506.00 to $581.00 and gave the stock a “neutral” rating in a research note on Tuesday, November 4th. Rothschild & Co Redburn increased their target price on shares of Caterpillar from $420.00 to $650.00 and gave the company a “neutral” rating in a research note on Wednesday, January 21st. Finally, Raymond James Financial restated a “market perform” rating on shares of Caterpillar in a research report on Wednesday, January 7th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $640.20.

Insider Transactions at Caterpillar

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $575.06, for a total value of $5,750,600.00. Following the sale, the chief financial officer owned 45,460 shares of the company’s stock, valued at $26,142,227.60. This trade represents a 18.03% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Lange Bob De sold 14,638 shares of the business’s stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $562.36, for a total transaction of $8,231,825.68. Following the transaction, the insider directly owned 80,209 shares in the company, valued at $45,106,333.24. This trade represents a 15.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 54,729 shares of company stock valued at $31,084,308 in the last three months. 0.33% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Caterpillar

Several institutional investors have recently added to or reduced their stakes in the stock. Valeo Financial Advisors LLC increased its position in Caterpillar by 36,842.1% during the second quarter. Valeo Financial Advisors LLC now owns 7,299,751 shares of the industrial products company’s stock worth $2,833,836,000 after buying an additional 7,279,991 shares during the last quarter. Norges Bank acquired a new position in Caterpillar in the 2nd quarter valued at $2,165,899,000. Wellington Management Group LLP grew its holdings in shares of Caterpillar by 3,949.8% during the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock worth $2,494,568,000 after purchasing an additional 5,098,964 shares in the last quarter. Massachusetts Financial Services Co. MA grew its stake in Caterpillar by 1,851.8% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,830,414 shares of the industrial products company’s stock worth $873,382,000 after buying an additional 1,736,631 shares in the last quarter. Finally, Marshall Wace LLP raised its position in shares of Caterpillar by 425.2% in the 2nd quarter. Marshall Wace LLP now owns 761,800 shares of the industrial products company’s stock valued at $295,738,000 after buying an additional 616,739 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Caterpillar Stock Up 2.3%

The stock has a market capitalization of $307.83 billion, a P/E ratio of 33.77, a PEG ratio of 2.46 and a beta of 1.57. The company has a quick ratio of 0.86, a current ratio of 1.38 and a debt-to-equity ratio of 1.34. The firm has a 50 day simple moving average of $599.82 and a two-hundred day simple moving average of $516.28.

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.