Q4 EPS Estimates for Caterpillar Increased by Zacks Research

Key Points

• Zacks Research raised Caterpillar’s Q4 2026 EPS forecast to $6.73 from $6.47 and maintained a “Strong Buy” rating. The firm also projects $27.37 in full-year earnings per share.
• Caterpillar’s latest quarterly results significantly exceeded expectations, with EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion, up 23.7% year over year.
• Analyst sentiment remains favorable, with MarketBeat reporting a “Moderate Buy” consensus rating and an average price target of $995.52, though Caterpillar’s elevated valuation and interest-rate risks remain concerns.

Caterpillar Inc. (NYSE:CAT - Free Report) - Investment analysts at Zacks Research increased their Q4 2026 earnings estimates for shares of Caterpillar in a note issued to investors on Monday, September 7th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings per share of $6.73 for the quarter, up from their previous estimate of $6.47. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $27.37 per share. Zacks Research also issued estimates for Caterpillar's Q1 2028 earnings at $7.87 EPS.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period in the previous year, the business posted $4.72 earnings per share. The business's revenue was up 23.7% compared to the same quarter last year.

Several other research firms have also recently issued reports on CAT. Royal Bank Of Canada increased their price objective on Caterpillar from $877.00 to $897.00 and gave the stock a "sector perform" rating in a research report on Wednesday, August 5th. Oppenheimer reiterated an "outperform" rating and issued a $1,118.00 price target on shares of Caterpillar in a report on Tuesday, August 4th. DA Davidson raised their price objective on shares of Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a research note on Thursday, August 6th. Rothschild & Co Redburn upped their target price on shares of Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Finally, Weiss Ratings upgraded shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $995.52.

Caterpillar Stock Performance

Shares of CAT stock opened at $816.41 on Thursday. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The stock has a 50 day simple moving average of $859.73 and a 200-day simple moving average of $840.13. The company has a market cap of $375.28 billion, a price-to-earnings ratio of 35.13, a price-to-earnings-growth ratio of 1.43 and a beta of 1.60. Caterpillar has a 12-month low of $419.50 and a 12-month high of $1,073.46.

Insider Buying and Selling

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the transaction, the chief executive officer 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 filing with the SEC, which is accessible through this link. Company insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Diversify Advisory Services LLC bought a new stake in Caterpillar during the 2nd quarter valued at $5,372,000. D.B. Root & Company LLC acquired a new stake in Caterpillar in the second quarter worth about $850,000. Dearborn Partners LLC acquired a new position in Caterpillar during the 2nd quarter valued at about $20,293,000. Axxcess Wealth Management LLC lifted its stake in shares of Caterpillar by 2.8% in the 4th quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock worth $12,844,000 after acquiring an additional 604 shares during the period. Finally, DSG Capital Advisors LLC acquired a new position in shares of Caterpillar during the first quarter valued at approximately $1,226,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts raised earnings estimates across multiple periods. Zacks Research increased its forecasts for Q3 2026, FY2026, FY2027 and FY2028, including FY2027 EPS from $30.14 to $31.43 and FY2028 EPS from $35.97 to $36.64. Zacks maintained a “Strong Buy” rating, signaling improved expectations for Caterpillar’s earnings trajectory. Caterpillar analyst estimate updates
• Positive Sentiment: AI and automation could create a new growth avenue. Caterpillar’s collaboration with FieldAI is intended to advance physical AI, autonomy and robotics for construction and other heavy-equipment applications. The partnership supports the company’s strategy to improve job-site safety, efficiency and equipment productivity. Caterpillar FieldAI partnership
• Positive Sentiment: Industrial-sector momentum is supporting the Caterpillar story. Coverage points to lean inventories and steady U.S. manufacturing activity as favorable conditions for Caterpillar. Piper Sandler also identified CAT and other industrial companies as potential beneficiaries of a rotation away from highly valued AI leaders and toward companies with tangible earnings and infrastructure exposure. Piper Sandler industrial rotation analysis
• Neutral Sentiment: CAT has significantly outperformed many industrial stocks. Articles comparing Caterpillar with Gorman-Rupp and the broader industrial-products sector highlight its strong year-to-date performance, reinforcing investor interest but also raising expectations for continued execution. Caterpillar industrial stock comparison
• Negative Sentiment: Valuation and interest-rate risk remain concerns. CAT’s roughly 35-times earnings valuation leaves less room for disappointment after its substantial annual advance. Rising 10-year Treasury yields—particularly a move toward 5%—could pressure expensive equities and increase financing costs for construction and mining customers. Caterpillar valuation analysis

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company's products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.

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