Zacks Research Forecasts Stronger Earnings for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Research analysts at Zacks Research boosted their Q2 2026 EPS estimates for shares of Caterpillar in a research note issued on Thursday, April 2nd. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $5.28 for the quarter, up from their prior estimate of $5.17. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $5.70 EPS, FY2026 earnings at $21.60 EPS, Q1 2027 earnings at $5.29 EPS, Q3 2027 earnings at $6.03 EPS, Q4 2027 earnings at $7.37 EPS, FY2027 earnings at $24.81 EPS, Q1 2028 earnings at $6.26 EPS and FY2028 earnings at $29.82 EPS.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, beating analysts’ consensus estimates of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The company had revenue of $19.13 billion during the quarter, compared to the consensus estimate of $17.81 billion. During the same period in the previous year, the firm posted $5.14 earnings per share. Caterpillar’s quarterly revenue was up 17.9% compared to the same quarter last year.

A number of other equities analysts have also issued reports on CAT. DA Davidson increased their price objective on Caterpillar from $569.00 to $650.00 and gave the stock a “neutral” rating in a report on Monday, February 2nd. Sanford C. Bernstein reissued a “market perform” rating and set a $678.00 price target on shares of Caterpillar in a report on Friday, January 30th. Jefferies Financial Group upped their price objective on shares of Caterpillar from $785.00 to $825.00 and gave the stock a “buy” rating in a report on Friday, March 6th. CICC Research assumed coverage on shares of Caterpillar in a research report on Friday, February 6th. They set an “outperform” rating on the stock. Finally, Bank of America raised their price objective on shares of Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a research note on Tuesday, February 10th. Sixteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $737.55.

Caterpillar Price Performance

NYSE CAT opened at $717.23 on Friday. The company has a 50-day moving average price of $713.73 and a two-hundred day moving average price of $610.90. Caterpillar has a 52 week low of $267.30 and a 52 week high of $789.81. The stock has a market cap of $333.72 billion, a price-to-earnings ratio of 38.11, a price-to-earnings-growth ratio of 1.72 and a beta of 1.52. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44.

Institutional Investors Weigh In On Caterpillar

A number of hedge funds have recently made changes to their positions in CAT. Advisory Resource Group increased its stake in shares of Caterpillar by 0.8% in the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company’s stock valued at $935,000 after buying an additional 13 shares during the period. Invst LLC lifted its stake in shares of Caterpillar by 1.9% during the fourth quarter. Invst LLC now owns 753 shares of the industrial products company’s stock valued at $431,000 after acquiring an additional 14 shares during the period. Plancorp LLC boosted its holdings in Caterpillar by 0.5% in the fourth quarter. Plancorp LLC now owns 2,777 shares of the industrial products company’s stock valued at $1,591,000 after acquiring an additional 15 shares during the last quarter. BlueStem Wealth Partners LLC increased its position in Caterpillar by 1.3% in the fourth quarter. BlueStem Wealth Partners LLC now owns 1,192 shares of the industrial products company’s stock worth $683,000 after purchasing an additional 15 shares during the period. Finally, KDT Advisors LLC raised its holdings in Caterpillar by 2.3% during the 4th quarter. KDT Advisors LLC now owns 657 shares of the industrial products company’s stock worth $376,000 after purchasing an additional 15 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Insider Buying and Selling at Caterpillar

In other news, CEO Joseph E. Creed sold 2,500 shares of Caterpillar stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $718.93, for a total transaction of $1,797,325.00. Following the sale, the chief executive officer owned 35,083 shares of the company’s stock, valued at approximately $25,222,221.19. This trade represents a 6.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Anthony D. Fassino sold 7,891 shares of the stock in a transaction on Friday, February 13th. The shares were sold at an average price of $776.90, for a total transaction of $6,130,517.90. Following the completion of the transaction, the insider owned 46,643 shares of the company’s stock, valued at approximately $36,236,946.70. This represents a 14.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 125,950 shares of company stock valued at $88,577,390 over the last quarter. Company insiders own 0.33% of the company’s stock.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised multiple quarterly and multi‑year EPS forecasts for CAT (including Q2‑2026, Q3‑2026, FY‑2026, FY‑2027 and FY‑2028), implying stronger forward earnings growth and supporting bullish investor expectations.
• Positive Sentiment: Wolfe Research raised its price target to $750 and maintained an Outperform rating; an analyst upgrade earlier this week also sparked intraday buying. Wolfe Research PT Raise
• Neutral Sentiment: Barclays bumped its target to $700 but kept an Equal‑Weight rating — less bullish than Wolfe and suggests limited near‑term upside from that shop. Barclays PT Note
• Neutral Sentiment: Caterpillar plans to add ~200 jobs at its Victoria, Texas facility — positive for capacity and local execution but modest for consolidated revenue/profit impact. Victoria Jobs Article
• Neutral Sentiment: CEO Joe Creed was named chairman following Jim Umpleby’s retirement — a governance change investors will watch but not an immediate earnings driver. Chairman Appointment
• Negative Sentiment: U.S. senators have called for a review of heavy‑equipment imports from Mexico; a finding could trigger tariffs or restrictions that would hurt margins and cross‑border supply chains given CAT’s Mexican manufacturing footprint. That headline is a key near‑term negative catalyst. Mexico Import Review
• Negative Sentiment: Market commentary highlights heavy insider selling over recent months (numerous executive share sales), which can feed profit‑taking or caution among some investors. Insider Trading Summary

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.