Caterpillar FY2026 EPS Forecast Lifted by Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Caterpillar to $24.56 from $24.44, while the broader consensus sits slightly higher at $24.86 per share.
• Caterpillar’s latest quarterly results beat expectations, reporting $5.54 EPS on $17.41 billion in revenue, both above consensus, with revenue up 22.2% year over year.
• The stock remains well covered by analysts, with a Moderate Buy consensus and a median target near $980.57; the company also recently raised its quarterly dividend to $1.63 per share.

Caterpillar Inc. (NYSE:CAT - Free Report) - Equities research analysts at Erste Group Bank raised their FY2026 earnings per share estimates for Caterpillar in a research report issued on Wednesday, July 15th. Erste Group Bank analyst H. Engel now anticipates that the industrial products company will earn $24.56 per share for the year, up from their prior forecast of $24.44. The consensus estimate for Caterpillar's current full-year earnings is $24.86 per share. Erste Group Bank also issued estimates for Caterpillar's FY2027 earnings at $30.31 EPS.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.41 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same period last year, the company earned $4.25 EPS. Caterpillar's revenue for the quarter was up 22.2% on a year-over-year basis.

Other research analysts have also recently issued reports about the stock. UBS Group reissued a "neutral" rating and set a $900.00 price objective on shares of Caterpillar in a report on Tuesday, June 2nd. Citigroup raised their target price on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday. DA Davidson boosted their target price on shares of Caterpillar from $650.00 to $845.00 and gave the company a "neutral" rating in a research note on Monday, May 4th. Sanford C. Bernstein increased their price target on Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a report on Friday, May 1st. Finally, Jefferies Financial Group raised their price target on Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Fifteen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, Caterpillar presently has a consensus rating of "Moderate Buy" and a consensus target price of $980.57.

Caterpillar Price Performance

CAT opened at $876.44 on Friday. The company's 50-day simple moving average is $931.59 and its two-hundred day simple moving average is $792.83. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The stock has a market capitalization of $403.68 billion, a P/E ratio of 43.63, a P/E/G ratio of 1.79 and a beta of 1.57. Caterpillar has a 52-week low of $405.46 and a 52-week high of $1,073.46.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Diamant Asset Management Inc. lifted its holdings in Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock valued at $2,224,992,000 after purchasing an additional 3,136,020 shares in the last quarter. Capital International Investors purchased a new stake in shares of Caterpillar in the fourth quarter worth $1,225,317,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Caterpillar by 573.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock worth $861,947,000 after purchasing an additional 1,281,087 shares in the last quarter. Bank of America Corp DE raised its position in shares of Caterpillar by 16.0% during the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after purchasing an additional 928,974 shares during the period. Finally, Cynosure Group LLC lifted its stake in shares of Caterpillar by 8,359.6% during the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock valued at $294,314,000 after buying an additional 507,681 shares in the last quarter. Institutional investors own 70.98% of the company's stock.

Insider Buying and Selling at Caterpillar

In related news, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the transaction, the chief financial officer directly owned 52,935 shares of the company's stock, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Denise C. Johnson sold 12,605 shares of Caterpillar stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the transaction, the insider owned 49,825 shares in the company, valued at $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 95,773 shares of company stock worth $87,642,635. Insiders own 0.33% of the company's stock.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a $1.63 dividend. The ex-dividend date is Monday, July 20th. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a yield of 0.7%. Caterpillar's payout ratio is 30.06%.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research lifted multiple Caterpillar earnings forecasts for 2026-2028 and reiterated a bullish stance in several notes, signaling confidence that profits can keep growing.
• Positive Sentiment: Wall Street is still looking for double-digit profit growth in Caterpillar’s upcoming Q2 2026 report, which supports the long-term earnings narrative.
• Positive Sentiment: Recent coverage highlighted Caterpillar’s exposure to AI data-center power buildout and other industrial/capital spending themes, which could support demand for its equipment.
• Neutral Sentiment: Caterpillar announced a $5 million Texas workforce initiative as part of a larger training commitment, which is positive for long-term brand and labor development but not an immediate earnings catalyst.
• Negative Sentiment: Zacks Research also downgraded Caterpillar from “strong-buy” to “hold,” a more cautious signal that likely weighed on sentiment.
• Negative Sentiment: The stock has also been pressured by broader market commentary, including reports that the Dow fell partly due to weakness in Caterpillar shares.

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.

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