Zacks Research Increases Earnings Estimates for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Investment analysts at Zacks Research upped their Q3 2026 EPS estimates for Caterpillar in a research report issued to clients and investors on Tuesday, October 6th. Zacks Research analyst Team now anticipates that the industrial products company will earn $6.78 per share for the quarter, up from their previous estimate of $6.57. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $27.50 per share. Zacks Research also issued estimates for Caterpillar’s Q4 2026 earnings at $6.88 EPS, FY2026 earnings at $27.36 EPS, Q1 2027 earnings at $6.48 EPS, Q2 2027 earnings at $8.52 EPS, Q3 2027 earnings at $8.40 EPS, Q4 2027 earnings at $9.04 EPS, FY2027 earnings at $32.44 EPS and Q3 2028 earnings at $10.16 EPS.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The firm had revenue of $20.54 billion during the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same quarter last year, the company posted $4.72 earnings per share.

A number of other equities analysts have also recently commented on CAT. Erste Group Bank cut Caterpillar from a “buy” rating to a “hold” rating in a report on Monday, July 27th. Royal Bank Of Canada lifted their target price on Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a research note on Wednesday, August 5th. Barclays boosted their target price on Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a report on Thursday, August 6th. Freedom Broker raised Caterpillar from a “hold” rating to a “buy” rating and set a $980.00 price target for the company in a report on Thursday, September 10th. Finally, UBS Group lifted their price objective on shares of Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $989.17.

Caterpillar Stock Down 2.1%

Shares of CAT stock opened at $796.86 on Wednesday. Caterpillar has a 52-week low of $491.30 and a 52-week high of $1,073.46. The stock has a market cap of $366.29 billion, a price-to-earnings ratio of 34.29, a PEG ratio of 1.40 and a beta of 1.58. The firm’s 50-day moving average is $822.61 and its 200-day moving average is $853.98. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Insider Buying and Selling

In related news, CEO Joseph E. Creed sold 32,401 shares of the firm’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer directly owned 34,555 shares of the company’s stock, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Several institutional investors and hedge funds have recently bought and sold shares of CAT. Lam Group Inc. acquired a new position in Caterpillar during the first quarter worth about $26,000. Decker Retirement Planning Inc. grew its holdings in shares of Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 22 shares during the last quarter. Cornerstone Financial Management LLC acquired a new position in Caterpillar during the 4th quarter worth approximately $32,000. Matrix Trust Co lifted its stake in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after purchasing an additional 15 shares during the last quarter. Finally, Monetary Solutions Ltd acquired a new stake in Caterpillar in the fourth quarter valued at approximately $35,000. 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: Higher earnings forecasts support the long-term outlook. Zacks Research raised its FY2026 EPS estimate to $27.36, FY2027 to $32.44 and FY2028 to $39.15, while also increasing estimates for several quarterly periods. Some Zacks reports maintain a “Strong Buy” view, although other updates list a “Hold” rating. MarketBeat Caterpillar analyst estimates
• Positive Sentiment: Caterpillar plans a $1 billion North Carolina expansion. The investment will expand Cat Compact manufacturing capacity and add advanced automation and digital systems, positioning the company to meet customer demand while supporting U.S. production and workforce development. Caterpillar North Carolina manufacturing investment
• Positive Sentiment: Potential growth in gas compression and data-center power markets provides additional upside. Analysts and commentators point to Caterpillar’s backlog and exposure to power-generation demand, including infrastructure supporting data centers. Caterpillar gas compression demand analysis
• Neutral Sentiment: The Caterpillar Foundation announced recovery support for flooding in Nepal. The initiative may enhance the company’s community profile but is unlikely to materially affect near-term financial results. Caterpillar Foundation Nepal flood support
• Negative Sentiment: Higher long-term interest rates are the main immediate pressure. Treasury yields reached their highest level in roughly two decades, weighing on capital-intensive industrial companies and potentially making equipment financing more expensive for customers. Industrial stocks and Treasury yields
• Negative Sentiment: Technical and regulatory concerns are adding to selling pressure. CAT fell below its 50-day moving average, while a lower Truist price target and an FTC/USDA information request involving the farm-equipment market add near-term uncertainty. Caterpillar and Deere regulatory inquiry

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.