Brokers Set Expectations for Caterpillar FY2026 Earnings

Key Points

• Erste Group Bank nudged its FY2026 EPS estimate for Caterpillar to $22.97 (up from $22.90) and projects FY2027 EPS of $27.99, versus a current consensus of about $22.89.
• Caterpillar recently posted a strong quarter, reporting $5.16 EPS (vs. $4.67 expected) and revenue of $19.13 billion (vs. $17.81 billion expected), with revenue up 17.9% year‑over‑year and healthy margins.
• Analyst sentiment is bullish overall, with multiple firms raising price targets (e.g., Wells Fargo to $960, Robert W. Baird to $940, Citigroup to $905) and a MarketBeat consensus rating of Moderate Buy with a $767.77 price target.

Caterpillar Inc. (NYSE:CAT - Free Report) - Erste Group Bank increased their FY2026 earnings per share estimates for Caterpillar in a report released on Monday, April 27th. Erste Group Bank analyst H. Engel now forecasts that the industrial products company will post earnings of $22.97 per share for the year, up from their prior forecast of $22.90. The consensus estimate for Caterpillar's current full-year earnings is $22.89 per share. Erste Group Bank also issued estimates for Caterpillar's FY2027 earnings at $27.99 EPS.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, topping analysts' consensus estimates of $4.67 by $0.49. The company had revenue of $19.13 billion during the quarter, compared to analyst estimates of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The company's quarterly revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the company earned $5.14 earnings per share.

A number of other research analysts have also commented on CAT. CICC Research initiated coverage on Caterpillar in a research note on Friday, February 6th. They issued an "outperform" rating for the company. DA Davidson upped their target price on Caterpillar from $569.00 to $650.00 and gave the company a "neutral" rating in a research note on Monday, February 2nd. Robert W. Baird upped their target price on Caterpillar from $805.00 to $940.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. Daiwa Securities Group upped their target price on Caterpillar from $640.00 to $790.00 in a research note on Wednesday, February 25th. Finally, Citigroup upped their target price on Caterpillar from $785.00 to $905.00 and gave the company a "buy" rating in a research note on Monday, April 13th. Sixteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $767.77.

Caterpillar Stock Performance

Shares of NYSE CAT opened at $818.45 on Wednesday. The business has a fifty day simple moving average of $743.10 and a 200 day simple moving average of $652.29. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44. The firm has a market capitalization of $380.82 billion, a price-to-earnings ratio of 43.49, a PEG ratio of 1.91 and a beta of 1.52. Caterpillar has a one year low of $302.17 and a one year high of $845.27.

Caterpillar Dividend Announcement

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

Insider Activity

In other news, insider Lange Bob De sold 22,656 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $720.11, for a total transaction of $16,314,812.16. Following the sale, the insider owned 79,953 shares in the company, valued at approximately $57,574,954.83. This 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 accessible through this link. Also, insider Rodney Michael Shurman sold 2,278 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $759.61, for a total value of $1,730,391.58. Following the sale, the insider owned 1,443 shares in the company, valued at $1,096,117.23. The trade was a 61.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 125,950 shares of company stock valued at $88,577,390. 0.33% of the stock is owned by company insiders.

Institutional Trading of Caterpillar

Several large investors have recently made changes to their positions in CAT. Illinois Municipal Retirement Fund lifted its stake in shares of Caterpillar by 7.3% during the third quarter. Illinois Municipal Retirement Fund now owns 17,262 shares of the industrial products company's stock valued at $8,237,000 after acquiring an additional 1,181 shares during the period. Caprock Group LLC acquired a new position in shares of Caterpillar during the third quarter valued at $8,893,000. ZEGA Investments LLC lifted its stake in shares of Caterpillar by 149.6% during the third quarter. ZEGA Investments LLC now owns 4,184 shares of the industrial products company's stock valued at $1,996,000 after acquiring an additional 2,508 shares during the period. State of New Jersey Common Pension Fund D lifted its stake in Caterpillar by 2.5% in the third quarter. State of New Jersey Common Pension Fund D now owns 165,677 shares of the industrial products company's stock valued at $79,053,000 after buying an additional 4,010 shares during the period. Finally, Juno Financial Group LLC acquired a new position in Caterpillar in the fourth quarter valued at about $877,000. 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: Wells Fargo raised its price target on CAT to $960 (from $870) and boosted 2026–2028 EPS forecasts, citing contributions from the Solar Turbines project — a direct analyst upgrade that supports higher fair‑value expectations. Wells Fargo Lifts PT on Caterpillar
• Positive Sentiment: Zacks Research nudged several quarterly EPS estimates higher (small bumps to Q3/Q4 2026–27 and FY2028), signaling incremental analyst confidence in near‑to‑medium term earnings momentum. Zacks Research EPS revisions
• Positive Sentiment: Macro/structural upside: multiple pieces note rising power demand from data centers and continued strength in construction/mining end markets — themes that support longer‑term revenue and aftermarket parts growth. Caterpillar Positioned for Long-Term Growth
• Positive Sentiment: High-profile bullish commentary (eg. Jim Cramer) is pushing expectations for a strong Q1 print, which can amplify momentum if results beat. Jim Cramer: "I Actually Expect a Huge Number"
• Neutral Sentiment: Pre‑earnings previews from Zacks and Yahoo dig into key metrics beyond headline revenue/EPS, useful for parsing parts, backlog and margins but not headline movers on their own. Ahead of Caterpillar Q1 Earnings: Wall Street Estimates
• Neutral Sentiment: Analyst writeups comparing cycle positions vs. peers (eg. Deere) highlight where CAT sits in its equipment cycle — important context for investors but not an immediate catalyst. Caterpillar and Deere Cycle Comparison
• Negative Sentiment: Balanced caution: preview articles note rising costs and CAT’s premium valuation — factors that make the near‑term risk/reward less clear and can prompt profit‑taking ahead of the Q1 print. Caterpillar Set to Report Q1 Earnings: Buy, Sell or Hold?

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.

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