Erste Group Bank Expects Stronger Earnings for Caterpillar

Key Points

• Erste Group Bank slightly raised its FY2026 earnings forecast for Caterpillar to $24.44 per share from $24.38, with the market consensus currently at $24.66.
• Caterpillar recently reported better-than-expected quarterly results, posting $5.54 EPS and $17.41 billion in revenue, both ahead of analyst estimates, while revenue rose 22.2% year over year.
• The company also boosted its quarterly dividend to $1.63 per share from $1.51, reflecting continued confidence in cash generation and shareholder returns.

Caterpillar Inc. (NYSE:CAT - Free Report) - Erste Group Bank upped their FY2026 earnings per share (EPS) estimates for Caterpillar in a research report issued on Thursday, June 25th. Erste Group Bank analyst H. Engel now expects that the industrial products company will earn $24.44 per share for the year, up from their previous forecast of $24.38. The consensus estimate for Caterpillar's current full-year earnings is $24.66 per share.

CAT has been the subject of several other reports. HSBC raised their target price on shares of Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Bank of America upped their price target on shares of Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Argus raised their price objective on shares of Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Wall Street Zen upgraded shares of Caterpillar from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Finally, Morgan Stanley set a $915.00 target price on Caterpillar and gave the company an "equal weight" rating in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $941.45.

Caterpillar Price Performance

NYSE CAT opened at $1,063.84 on Wednesday. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. Caterpillar has a 1 year low of $384.25 and a 1 year high of $1,073.46. The company has a market cap of $489.99 billion, a PE ratio of 52.95, a PEG ratio of 2.04 and a beta of 1.59. The stock's 50-day moving average price is $908.01 and its two-hundred day moving average price is $762.47.

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

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, July 20th. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.6%. Caterpillar's payout ratio is presently 30.06%.

Insider Transactions at Caterpillar

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the stock in a transaction that occurred 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 completion of the sale, the insider owned 49,825 shares in the company, valued at $45,236,615.75. This represents a 20.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jason Kaiser sold 5,642 shares of Caterpillar stock in a transaction on Monday, May 4th. The shares were sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the sale, the insider directly owned 9,594 shares of the company's stock, valued at $8,471,789.82. This trade represents a 37.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Axxcess Wealth Management LLC raised its position in shares of Caterpillar by 2.8% in 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 purchasing an additional 604 shares during the period. Juno Financial Group LLC bought a new stake in shares of Caterpillar during the 4th quarter worth $877,000. ARK Investment Management LLC grew its stake in Caterpillar by 11.7% in the 3rd quarter. ARK Investment Management LLC now owns 31,144 shares of the industrial products company's stock valued at $14,860,000 after buying an additional 3,268 shares during the last quarter. Gotham Asset Management LLC raised its holdings in Caterpillar by 19.1% in the 3rd quarter. Gotham Asset Management LLC now owns 116,589 shares of the industrial products company's stock worth $55,630,000 after acquiring an additional 18,676 shares during the period. Finally, Cornerstone Planning LLC acquired a new position in Caterpillar during the 4th quarter worth $4,517,000. 70.98% of the stock is owned by institutional investors and hedge funds.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised its Q3 EPS estimate for Caterpillar, reinforcing expectations that the company can keep delivering strong earnings momentum. Q3 EPS Estimates for Caterpillar Raised by Zacks Research
• Positive Sentiment: Recent commentary has highlighted Caterpillar as a beneficiary of the AI infrastructure buildout, helping push the stock’s valuation higher as investors look for industrial winners tied to data-center and power demand. Caterpillar (CAT) Hits Unprecedented Valuation Amid AI Infrastructure Surge
• Positive Sentiment: Market coverage and analyst discussion have continued to frame CAT as a durable industrial name with solid dividend characteristics and attractive long-term demand trends. The Big 3: CAT, SPCX, JPM
• Neutral Sentiment: Industry roundups note that construction and mining equipment stocks are facing sector headwinds overall, but Caterpillar is still viewed as one of the stronger names in the group. 3 Construction & Mining Equipment Stocks Braving Industry Headwinds
• Negative Sentiment: Michael Burry disclosed that he is shorting Caterpillar for the first time, a bearish signal that could pressure sentiment by suggesting he thinks the stock has run too far too fast. Michael Burry says he's shorting Caterpillar for the first time after it nearly doubled in the AI-driven rally of 2026

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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