Zacks Research Forecasts Reduced Earnings for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Zacks Research dropped their Q2 2026 earnings estimates for shares of Caterpillar in a report released on Thursday, February 12th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $5.12 per share for the quarter, down from their previous estimate of $5.27. 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 $5.58 EPS, Q4 2026 earnings at $6.29 EPS, Q1 2027 earnings at $5.02 EPS, Q2 2027 earnings at $6.01 EPS, Q3 2027 earnings at $5.96 EPS and Q4 2027 earnings at $7.05 EPS.

CAT has been the topic of several other reports. Rothschild & Co Redburn raised their target price on shares of Caterpillar from $650.00 to $700.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 4th. Wolfe Research lifted their price target on shares of Caterpillar from $470.00 to $670.00 and gave the company an “outperform” rating in a report on Friday, January 2nd. Oppenheimer upped their price objective on Caterpillar from $700.00 to $729.00 and gave the stock an “outperform” rating in a report on Friday, January 30th. Bank of America boosted their price target on Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a research report on Tuesday, February 10th. Finally, Robert W. Baird set a $805.00 price objective on Caterpillar in a report on Friday, January 30th. Sixteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Caterpillar presently has a consensus rating of “Moderate Buy” and an average price target of $702.95.

Caterpillar Stock Up 2.1%

CAT opened at $774.37 on Monday. Caterpillar has a 12 month low of $267.30 and a 12 month high of $789.81. The business has a 50-day moving average of $637.66 and a two-hundred day moving average of $544.34. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94. The stock has a market capitalization of $362.39 billion, a price-to-earnings ratio of 41.15, a price-to-earnings-growth ratio of 1.83 and a beta of 1.58.

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

Caterpillar Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Tuesday, January 20th will be given a dividend of $1.51 per share. The ex-dividend date of this dividend is Tuesday, January 20th. This represents a $6.04 annualized dividend and a yield of 0.8%. Caterpillar’s payout ratio is 32.09%.

Insider Buying and Selling

In other news, insider Denise C. Johnson sold 39,138 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $681.08, for a total value of $26,656,109.04. Following the completion of the transaction, the insider directly owned 43,350 shares in the company, valued at approximately $29,524,818. This represents a 47.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $575.06, for a total transaction of $5,750,600.00. Following the sale, the chief financial officer directly owned 45,460 shares in the company, valued at $26,142,227.60. This trade represents a 18.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 130,545 shares of company stock worth $88,294,733 in the last 90 days. 0.33% of the stock is owned by insiders.

Institutional Trading of Caterpillar

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Okabena Investment Services Inc. boosted its holdings in Caterpillar by 6.8% in the fourth quarter. Okabena Investment Services Inc. now owns 1,175 shares of the industrial products company’s stock valued at $673,000 after purchasing an additional 75 shares during the last quarter. Silvant Capital Management LLC boosted its stake in shares of Caterpillar by 262.9% during the 4th quarter. Silvant Capital Management LLC now owns 3,905 shares of the industrial products company’s stock valued at $2,237,000 after buying an additional 2,829 shares during the last quarter. Trustco Bank Corp N Y grew its position in shares of Caterpillar by 15.5% during the fourth quarter. Trustco Bank Corp N Y now owns 1,488 shares of the industrial products company’s stock worth $852,000 after buying an additional 200 shares in the last quarter. Tenzing Financial LLC bought a new stake in shares of Caterpillar in the fourth quarter worth $249,000. Finally, WealthTrust Axiom LLC boosted its stake in Caterpillar by 2.5% during the 4th quarter. WealthTrust Axiom LLC now owns 1,635 shares of the industrial products company’s stock valued at $937,000 after acquiring an additional 40 shares during the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is being positioned as a supplier to the AI/data‑center buildout (generators, power systems and site infrastructure), which traders interpret as a structural growth tailwind beyond traditional construction and mining cycles. Caterpillar Rides AI Data Center Boom As Earnings Story Evolves
• Positive Sentiment: Public radio piece highlights how a century-old industrial firm (Caterpillar) is providing power solutions that high‑tech data centers need, reinforcing the narrative that CAT can capture durable aftermarket and electrification revenue from the data‑center market. High-tech data centers get a powerful assist from a century-old company
• Positive Sentiment: Recent quarterly results showed an earnings and revenue beat with strong margins (EPS and revenue above consensus; year‑over‑year revenue growth), supporting the thesis that Caterpillar’s profit outlook can improve as demand mix shifts. (Company results released Jan. 29; investors cite improved ROE and margin metrics.)
• Neutral Sentiment: Coverage in a dividend‑stock roundup frames long‑term income investors’ interest in durable, cash‑generating industrials; this may attract dividend‑focused buyers but is unlikely to move the stock materially by itself. 2 Dividend Stocks to Hold for the Next 10 Years
• Negative Sentiment: Zacks Research lowered Q2 EPS estimates for Caterpillar, introducing short‑term downside risk to the shares if revisions continue; this helps explain some analyst caution despite the data‑center narrative. Q2 EPS Estimates for Caterpillar Lowered by Zacks Research
• Negative Sentiment: Valuation is relatively rich (high P/E versus historical averages), so the stock’s upside could be sensitive to any slowdown in end markets or further estimate cuts; watch upcoming guidance and analyst revisions.

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.