Zacks Research Increases Earnings Estimates for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Equities research analysts at Zacks Research raised their FY2026 earnings per share estimates for Caterpillar in a report released on Tuesday, August 18th. Zacks Research analyst Team now anticipates that the industrial products company will earn $26.55 per share for the year, up from their prior estimate of $24.51. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $26.98 per share. Zacks Research also issued estimates for Caterpillar’s Q4 2026 earnings at $6.47 EPS and Q2 2027 earnings at $7.90 EPS.

Several other research firms have also issued reports on CAT. Rothschild & Co Redburn lifted their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. JPMorgan Chase & Co. raised their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. Bank of America boosted their price target on Caterpillar from $930.00 to $989.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Erste Group Bank downgraded Caterpillar from a “buy” rating to a “hold” rating in a research note on Monday, July 27th. Finally, Oppenheimer reissued an “outperform” rating and set a $1,118.00 price objective on shares of Caterpillar in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, Caterpillar presently has a consensus rating of “Moderate Buy” and a consensus price target of $995.52.

Caterpillar Stock Performance

Shares of CAT opened at $814.68 on Thursday. The firm has a market cap of $374.49 billion, a price-to-earnings ratio of 35.06, a price-to-earnings-growth ratio of 1.48 and a beta of 1.60. The company’s fifty day moving average is $912.19 and its 200-day moving average is $832.06. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. Caterpillar has a 12 month low of $410.52 and a 12 month high of $1,073.46.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating the consensus estimate of $6.22 by $1.95. The firm had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company’s revenue for the quarter was up 23.7% on a year-over-year basis. During the same quarter last year, the firm earned $4.72 earnings per share.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were given a dividend of $1.63 per share. The ex-dividend date of this dividend was Monday, July 20th. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s payout ratio is presently 28.06%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Lam Group Inc. acquired a new position in Caterpillar during the 1st quarter valued at $26,000. Torren Management LLC acquired a new stake in Caterpillar in the 4th quarter worth $27,000. Frazier Financial Advisors LLC increased its holdings in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 33 shares during the period. Decker Retirement Planning Inc. raised its position in shares of Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after buying an additional 22 shares during the last quarter. Finally, Cornerstone Financial Management LLC acquired a new position in shares of Caterpillar during the fourth quarter valued at about $32,000. 70.98% of the stock is owned by institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts raised earnings forecasts. Zacks Research increased its EPS projections across several periods, including FY2027 to $30.14 from $29.01 and FY2028 to $35.97 from $34.31. The firm maintained a “Strong-Buy” rating, signaling improved confidence in Caterpillar’s long-term earnings outlook. Zacks Research estimates
• Positive Sentiment: Growth momentum remains a supporting factor. A Zacks analysis said volume-driven growth is accelerating across Caterpillar’s three segments and prompted a sharp increase in its 2026 sales outlook. The company also announced a $3 million workforce investment in Arkansas, supporting local hiring and operations. Caterpillar volume gains analysis Caterpillar workforce initiative
• Neutral Sentiment: Recent gains may be prompting profit-taking. Commentary highlighted that CAT has risen sharply over the past year, increasing attention to valuation and how much future growth is already reflected in the stock. CAT stock performance analysis
• Negative Sentiment: Weak industrial data raised demand concerns. U.S. industrial production was weaker than expected in July, prompting investors to question whether Caterpillar’s record backlog can withstand a slowdown in industrial activity and equipment demand. Weaker U.S. industrial output analysis
• Negative Sentiment: Market-wide selling pressured CAT. Caterpillar and Goldman Sachs were cited as major drags on the Dow amid a pullback in AI-related and technology-linked trades. This appears to reflect broader risk reduction and sector rotation rather than a new company-specific operational setback. Dow market pressure

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.