Caterpillar (NYSE:CAT) Shares Up 6% After Strong Earnings

Key Points

• Caterpillar shares jumped 6% after the company reported adjusted earnings of $8.17 per share, well above the $6.22 analyst consensus, while revenue rose 23.7% year over year to $20.54 billion.
• Management raised its 2026 revenue-growth outlook to the mid-to-high teens percentage range, supported by strong demand across construction, mining, power generation and AI-related data-center infrastructure. The company also reported a record order backlog of roughly $63 billion.
• Caterpillar increased its quarterly dividend to $1.63 per share, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $966.29.

Caterpillar Inc. (NYSE:CAT - Get Free Report)'s share price was up 6% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $935.00 and last traded at $879.99. 6,162,575 shares traded hands during mid-day trading, an increase of 110% from the average session volume of 2,938,126 shares. The stock had previously closed at $830.03.

The industrial products company reported $8.17 EPS for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $20.54 billion during the quarter, compared to analysts' expectations of $19.34 billion. During the same quarter in the previous year, the firm earned $4.72 EPS. Caterpillar's revenue was up 23.7% on a year-over-year basis.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar's dividend payout ratio is currently 32.45%.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Record revenue and major earnings beat: Second-quarter sales and revenues rose 24% year over year to $20.5 billion, Caterpillar’s first quarterly result above $20 billion. Adjusted profit per share was $8.17, versus analyst expectations near $6.22, and rose sharply from $4.72 a year earlier. Higher equipment volume, pricing, and demand across construction, mining, engines, and generators supported the results. Caterpillar Reports Second-Quarter 2026 Results
• Positive Sentiment: AI infrastructure is driving power-equipment demand: Caterpillar is benefiting from construction of data centers and rising demand for backup and power-generation equipment. Investors viewed the quarter as evidence that the AI infrastructure buildout continues to generate orders for industrial suppliers. AI Data Center Boom Fuels Record $20.5 Billion Quarter for Caterpillar
• Positive Sentiment: Improved outlook: Management raised its 2026 revenue-growth expectation to the mid-to-high teens percentage range from the prior low-double-digit forecast, reinforcing expectations for continued demand and helping support the stock’s upward move. Caterpillar lifts 2026 sales growth target
• Neutral Sentiment: Strong order visibility: Caterpillar entered the report with a record order backlog of approximately $63 billion, providing support for future sales, although investors will monitor how much of the backlog is tied to data-center spending and whether that pace can persist.
• Neutral Sentiment: Shareholder returns remained substantial: The company deployed $2.2 billion on share repurchases and dividends during the quarter, highlighting strong cash generation but also leaving investors focused on execution against elevated growth expectations.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on CAT shares. UBS Group reiterated a "neutral" rating and issued a $900.00 target price on shares of Caterpillar in a report on Tuesday, June 2nd. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Evercore reiterated an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Sanford C. Bernstein boosted their price target on shares of Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a research report on Friday, May 1st. Finally, DA Davidson increased their price objective on Caterpillar from $650.00 to $845.00 and gave the stock a "neutral" rating in a report on Monday, May 4th. Thirteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $966.29.

Insider Buying and Selling

In related news, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar 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 completion of the sale, the chief financial officer owned 52,935 shares of the company's stock, valued at $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the transaction, the chief accounting officer owned 530 shares in the company, valued at $480,180. This represents a 40.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 84,492 shares of company stock worth $77,567,548 over the last three months. Corporate insiders own 0.33% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Axxcess Wealth Management LLC lifted its stake in Caterpillar by 2.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock valued at $12,844,000 after buying an additional 604 shares in the last quarter. Juno Financial Group LLC purchased a new position in shares of Caterpillar in the fourth quarter worth approximately $877,000. DSG Capital Advisors LLC acquired a new stake in shares of Caterpillar during the first quarter valued at approximately $1,226,000. Cornerstone Planning LLC purchased a new stake in shares of Caterpillar in the 4th quarter valued at approximately $4,517,000. Finally, Ticino Wealth acquired a new position in Caterpillar in the 4th quarter worth approximately $2,488,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Up 6.0%

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 cap of $405.31 billion, a price-to-earnings ratio of 43.80, a price-to-earnings-growth ratio of 1.59 and a beta of 1.60. The business's 50 day moving average is $923.52 and its 200 day moving average is $814.19.

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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