Caterpillar (NYSE:CAT) Announces Earnings Results, Beats Estimates By $0.89 EPS

Caterpillar (NYSE:CAT) issued its quarterly earnings data on Thursday. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.65 by $0.89, FiscalAI reports. The firm had revenue of $17.42 billion during the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business’s revenue for the quarter was up 22.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.25 earnings per share.

Here are the key takeaways from Caterpillar’s conference call:

• The company reported a strong start to 2026 with $17.4 billion in sales (up 22%), adjusted EPS of $5.54 (up 30%), a record backlog of $63 billion (+79% y/y), and deployed $5.7 billion to shareholders in the quarter.
• Caterpillar raised its full‑year outlook to expect low double‑digit sales growth, higher adjusted operating profit margin versus January (though still near the bottom of its target range due to tariffs), and MP&E free cash flow above 2025 levels.
• Management is increasing large reciprocating engine capacity from 2x to nearly 3x 2024 levels (additional investment mainly 2027–2029), expects a positive cash payback by decade‑end, and raised its 2030 enterprise sales CAGR target to 6%–9%.
• Tariffs remain a material headwind—Q1 tariff costs were about $600 million (favorable to prior estimate), but full‑year 2026 tariffs are now estimated at $2.2–$2.4 billion (Q2 expected ~$700 million), which is pressuring margins despite mitigation efforts.
• Resource Industries lagged expectations—sales were up modestly but below plan, segment profit fell 39% and margin declined ~700 bps in Q1, driven by tariffs, timing of deliveries, and short‑term price realization issues.

Caterpillar Stock Down 0.2%

Shares of CAT stock traded down $1.89 on Friday, hitting $888.23. 716,277 shares of the stock were exchanged, compared to its average volume of 2,695,324. Caterpillar has a fifty-two week low of $318.11 and a fifty-two week high of $905.00. The business has a 50-day moving average of $746.86 and a 200 day moving average of $655.04. The firm has a market capitalization of $413.28 billion, a P/E ratio of 47.10, a price-to-earnings-growth ratio of 1.87 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.

Caterpillar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th will be given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, April 20th. Caterpillar’s dividend payout ratio is currently 32.09%.

Insider Buying and Selling at Caterpillar

In related news, CEO Joseph E. Creed sold 2,500 shares of the stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $718.93, for a total transaction of $1,797,325.00. Following the completion of the transaction, the chief executive officer owned 35,083 shares in the company, valued at approximately $25,222,221.19. This represents a 6.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Denise C. Johnson sold 39,138 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $681.08, for a total transaction of $26,656,109.04. Following the transaction, the insider owned 43,350 shares of the company’s stock, valued at $29,524,818. The trade was a 47.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 125,950 shares of company stock valued at $88,577,390 in the last three months. 0.33% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CAT. Bank of America Corp DE boosted its holdings in Caterpillar by 16.0% during the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock worth $3,860,457,000 after purchasing an additional 928,974 shares during the last quarter. Amundi raised its position in Caterpillar by 24.3% during the third quarter. Amundi now owns 2,375,710 shares of the industrial products company’s stock worth $1,176,870,000 after acquiring an additional 464,036 shares in the last quarter. State Street Corp raised its position in Caterpillar by 1.1% during the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company’s stock worth $20,273,039,000 after acquiring an additional 385,204 shares in the last quarter. Two Sigma Investments LP raised its position in Caterpillar by 180.0% during the third quarter. Two Sigma Investments LP now owns 403,727 shares of the industrial products company’s stock worth $192,638,000 after acquiring an additional 259,526 shares in the last quarter. Finally, Caisse de depot et placement du Quebec raised its position in Caterpillar by 79.4% during the third quarter. Caisse de depot et placement du Quebec now owns 378,158 shares of the industrial products company’s stock worth $180,438,000 after acquiring an additional 167,393 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q1 beat and raise — Caterpillar reported stronger-than-expected Q1 results (adj. EPS $5.54; revenue $17.4B, +22% y/y), deployed $5.7B to buybacks/dividends, and lifted its annual/long-term revenue outlook, giving investors confidence in near-term growth and cash returns. Caterpillar Reports First-Quarter 2026 Results
• Positive Sentiment: AI-driven power demand — Management and reporters highlight a boom in demand for power and energy equipment tied to AI/data-center buildouts, which is expanding Caterpillar’s addressable market for generators and power systems and underpins the raised outlook. Caterpillar expects AI-driven demand for power, construction to fuel growth
• Positive Sentiment: Record backlog and sector leadership — Reports note a record backlog in power and construction segments, helping drive the stock to all-time highs as investors price in sustained revenue visibility. Caterpillar stock jumps on record backlog…
• Positive Sentiment: New multi-year power deal — A framework agreement with ProPetro’s PROPWR to supply up to 2.1 GW of power capacity through 2031/2032 expands recurring power equipment demand and strengthens exposure to data-center and industrial power projects. Caterpillar Taps PROPWR And Data Centers For New Power Growth
• Positive Sentiment: Analyst upgrade — Baird analyst Mig Dobre made CAT a fresh bullish pick and raised his price target to $1,165 (Street-high), adding momentum from the sell-side that can attract further buyer interest. Caterpillar Stock Can Rise Another 30%
• Neutral Sentiment: Market and ETF flows — ETFs and Dow-related flows have amplified CAT’s move after the earnings surprise, raising liquidity and volatility around the stock. ETFs tied to Caterpillar jump…
• Neutral Sentiment: Investor events — Company announced a virtual annual shareholder meeting for June 10; routine corporate governance item with limited near-term price impact. Caterpillar Announces Virtual 2026 Shareholder Meeting
• Negative Sentiment: Tariff pressure — Multiple reports note Caterpillar expects significant tariff costs in 2026; higher input/transport tariffs could weigh on margins and offset some benefits from pricing and volume. Caterpillar expecting significant tariff costs again for 2026

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Wells Fargo & Company boosted their price objective on shares of Caterpillar from $960.00 to $1,050.00 and gave the company an “overweight” rating in a report on Friday. Daiwa Securities Group boosted their price objective on shares of Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a report on Friday. Sanford C. Bernstein boosted their price objective on shares of Caterpillar from $769.00 to $879.00 and gave the company a “market perform” rating in a report on Friday. UBS Group reiterated a “neutral” rating and issued a $677.00 price target on shares of Caterpillar in a report on Monday, February 2nd. Finally, Truist Financial upped their price target on shares of Caterpillar from $786.00 to $920.00 and gave the company a “buy” rating in a report on Monday, April 20th. Sixteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, Caterpillar presently has an average rating of “Moderate Buy” and a consensus target price of $849.27.

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.