Caterpillar (NYSE:CAT) Announces Quarterly Earnings Results

Caterpillar (NYSE:CAT) released its quarterly earnings data on Thursday. The industrial products company reported $5.54 EPS for the quarter, beating the consensus estimate of $4.57 by $0.97, FiscalAI reports. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.43 billion. During the same quarter in the prior year, the firm earned $4.25 EPS. The business’s revenue was up 22.2% on a year-over-year basis.

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 Trading Up 10.0%

Shares of CAT stock traded up $80.86 during trading hours on Thursday, reaching $890.91. 5,158,647 shares of the stock were exchanged, compared to its average volume of 2,009,188. The firm has a market capitalization of $414.53 billion, a price-to-earnings ratio of 47.34, a price-to-earnings-growth ratio of 1.87 and a beta of 1.52. Caterpillar has a 12-month low of $311.02 and a 12-month high of $896.98. The company’s 50-day moving average price is $746.86 and its 200-day moving average price is $655.04. 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 announced a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th will be issued a $1.51 dividend. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, April 20th. Caterpillar’s dividend payout ratio (DPR) is 32.09%.

Insider Buying and Selling

In other Caterpillar news, insider Lange Bob De sold 22,656 shares of the firm’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $720.11, for a total value of $16,314,812.16. Following the completion of the sale, the insider owned 79,953 shares of the company’s stock, valued at $57,574,954.83. This trade represents a 22.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Rodney Michael Shurman sold 2,278 shares of the company’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $759.61, for a total value of $1,730,391.58. Following the transaction, the insider directly owned 1,443 shares in the company, valued at approximately $1,096,117.23. This represents a 61.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 125,950 shares of company stock worth $88,577,390 over the last three months. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Caterpillar

Hedge funds and other institutional investors have recently bought and sold shares of the business. Hohimer Wealth Management LLC grew its holdings in shares of Caterpillar by 0.4% in the fourth quarter. Hohimer Wealth Management LLC now owns 3,680 shares of the industrial products company’s stock worth $2,108,000 after purchasing an additional 15 shares during the last quarter. Paragon Capital Management LLC lifted its holdings in Caterpillar by 0.6% during the 4th quarter. Paragon Capital Management LLC now owns 2,616 shares of the industrial products company’s stock valued at $1,499,000 after buying an additional 16 shares in the last quarter. PFC Capital Group Inc. boosted its position in Caterpillar by 0.5% in the 4th quarter. PFC Capital Group Inc. now owns 3,317 shares of the industrial products company’s stock valued at $1,900,000 after buying an additional 16 shares during the period. Hilltop Partners LLC grew its stake in Caterpillar by 3.0% in the 4th quarter. Hilltop Partners LLC now owns 591 shares of the industrial products company’s stock worth $338,000 after acquiring an additional 17 shares in the last quarter. Finally, CacheTech Inc. increased its position in shares of Caterpillar by 1.6% during the fourth quarter. CacheTech Inc. now owns 1,341 shares of the industrial products company’s stock worth $768,000 after acquiring an additional 21 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q1 beat and raised outlook — CAT reported adjusted EPS and revenue well above estimates, drove a sizable year-over-year revenue gain and raised annual guidance on stronger demand for construction and power equipment. Caterpillar expects AI-driven demand for power, construction to fuel growth
• Positive Sentiment: Record backlog and AI-driven power demand — Management cited a record backlog and rising demand for power and energy equipment to support data centers (AI buildout), underpinning multi-year revenue visibility for the power segment. Caterpillar stock jumps on record backlog, boom in power and energy equipment for data centers
• Positive Sentiment: Strategic partnership for power assets — A framework agreement with PROPWR (ProPetro) to supply up to 2.1 GW of power generation capacity reinforces Caterpillar’s exposure to data-center and industrial power demand. That supports the company’s growth story beyond traditional construction equipment. ProPetro, Caterpillar Partner on Multi-Year Power Buildout Through 2032
• Positive Sentiment: Capital returns — CAT deployed $5.7 billion for share repurchases and dividends in Q1, a concrete driver of EPS accretion and shareholder value that supports the stock’s rally. Caterpillar Reports First-Quarter 2026 Results
• Positive Sentiment: Market reaction & analyst support — ETFs and broader market flows grabbed CAT exposure after the earnings-led rally; banks and some analysts have raised estimates/targets, reinforcing momentum. ETFs tied to Caterpillar jump after the stock’s earnings-driven rally
• Neutral Sentiment: Broader market context — CAT’s move helped lift the Dow and contributed to intraday index strength, but part of the move reflects market positioning around big-cap earnings rather than company-specific news alone. Dow rises 730 points, S&P 500 hits new intraday high
• Neutral Sentiment: Corporate housekeeping — Caterpillar announced its virtual annual shareholder meeting (June 10), which is routine and unlikely to move the share price materially. Caterpillar Announces Virtual 2026 Shareholder Meeting
• Negative Sentiment: Tariff and cost pressure — Management warned of significant tariff costs for 2026 and analysts flagged tariffs as a margin headwind, which could limit upside to margins even as revenue grows. Caterpillar expecting significant tariff costs again for 2026

Analysts Set New Price Targets

CAT has been the subject of a number of research reports. JPMorgan Chase & Co. increased their price target on Caterpillar from $765.00 to $860.00 and gave the company an “overweight” rating in a research note on Wednesday, March 4th. CICC Research began coverage on Caterpillar in a report on Friday, February 6th. They set an “outperform” rating on the stock. Citigroup raised their target price on shares of Caterpillar from $785.00 to $905.00 and gave the company a “buy” rating in a report on Monday, April 13th. Raymond James Financial reaffirmed a “market perform” rating on shares of Caterpillar in a research note on Wednesday, January 7th. Finally, Bank of America increased their price objective on shares of Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a research report on Tuesday, February 10th. Sixteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Caterpillar presently has an average rating of “Moderate Buy” and an average target price of $767.77.

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.