Caterpillar (NYSE:CAT) Issues Quarterly Earnings Results

Caterpillar (NYSE:CAT) announced its quarterly earnings data on Tuesday. The industrial products company reported $8.17 earnings per share for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95, FiscalAI reports. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period in the prior year, the company earned $4.72 earnings per share. The company’s revenue was up 23.7% on a year-over-year basis.

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 Up 2.1%

CAT traded up $18.36 during trading hours on Wednesday, reaching $894.90. 904,236 shares of the stock traded hands, compared to its average volume of 2,925,551. Caterpillar has a fifty-two week low of $405.46 and a fifty-two week high of $1,073.46. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The company has a market cap of $412.18 billion, a price-to-earnings ratio of 44.54, a PEG ratio of 1.62 and a beta of 1.60. The firm’s fifty day simple moving average is $922.93 and its two-hundred day simple moving average is $815.89.

Caterpillar Increases Dividend

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

Insider Transactions at Caterpillar

In other news, CAO William E. Schaupp sold 360 shares of the 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 completion of the transaction, the chief accounting officer directly owned 530 shares in the company, valued at approximately $480,180. This represents a 40.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Denise C. Johnson sold 12,605 shares of the stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the transaction, the insider owned 49,825 shares in the company, valued at $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 35,444 shares of company stock valued at $32,335,679. 0.33% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Caterpillar

A number of institutional investors have recently modified their holdings of the business. Birchwood Financial Partners Inc. acquired a new position in Caterpillar during the 4th quarter valued at about $60,000. Strive Financial Group LLC acquired a new position in Caterpillar during the 4th quarter worth $45,000. Blue Sparrow LLC DE acquired a new position in shares of Caterpillar during the fourth quarter valued at $2,291,000. Mercer Global Advisors Inc. ADV lifted its holdings in Caterpillar by 11.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 156,535 shares of the industrial products company’s stock worth $92,137,000 after purchasing an additional 16,299 shares during the period. Finally, Summit Global Investments increased its stake in Caterpillar by 457.6% during the 4th quarter. Summit Global Investments now owns 2,470 shares of the industrial products company’s stock valued at $1,415,000 after buying an additional 2,027 shares during the period. Institutional investors own 70.98% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on CAT shares. Argus boosted their target price on Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Wall Street Zen upgraded Caterpillar from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. HSBC boosted their price objective on Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Barclays boosted their price objective on shares of Caterpillar from $700.00 to $800.00 and gave the company an “equal weight” rating in a research note on Friday, May 1st. Finally, Evercore reiterated an “outperform” rating and issued a $1,103.00 price objective on shares of Caterpillar in a research report on Monday, May 11th. Thirteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $981.95.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported record second-quarter sales and revenues of $20.5 billion, up 24% year over year and above the roughly $19.3 billion analyst expectation. Adjusted profit per share reached $8.17, well ahead of the $6.22 consensus and $4.72 a year earlier. Caterpillar Reports Second-Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 sales-growth forecast to the mid-to-high teens percentage range, citing broad-based demand, a record backlog above $72 billion and expectations for stronger second-half growth. CAT Q2 Earnings Call Focuses on Backlog and Capacity Growth
• Positive Sentiment: The Power and Energy segment generated approximately $8.2 billion in quarterly sales and more segment profit than Construction Industries, highlighting Caterpillar’s expanding exposure to AI data-center construction, backup power and generation capacity. Caterpillar Now Makes Almost as Much Selling Power as It Does Selling Construction Equipment
• Positive Sentiment: The company returned $2.2 billion to shareholders through dividends and repurchases during the quarter, while strong institutional buying and the broad market rally provided additional support for the stock.
• Neutral Sentiment: Despite the operational momentum, CAT’s valuation remains demanding: reports cite more than 30 times forward earnings and a free-cash-flow yield near 3.2%, leaving the shares sensitive to any slowdown in AI infrastructure spending or the broader industrial cycle. Caterpillar: You Can’t Avoid The Cycle, But You Can Price It

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.