Zacks Research Has Positive View of Caterpillar Q3 Earnings

Key Points

• Zacks Research raised Caterpillar’s Q3 2026 EPS estimate to $6.57 from $6.37 and maintains a “Strong Buy” rating. The firm projects full-year 2026 EPS of $27.01 and 2027 EPS of $31.43.
• Caterpillar’s latest quarter significantly exceeded expectations, with EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion versus $19.34 billion expected; revenue increased 23.7% year over year.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $995.52 price target, but the stock’s roughly 34x earnings valuation and recent rally could increase vulnerability to profit-taking or weaker-than-expected results.

Caterpillar Inc. (NYSE:CAT - Free Report) - Research analysts at Zacks Research increased their Q3 2026 earnings per share (EPS) estimates for Caterpillar in a report issued on Monday, September 7th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $6.57 per share for the quarter, up from their prior forecast of $6.37. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $27.34 per share. Zacks Research also issued estimates for Caterpillar's FY2026 earnings at $27.01 EPS, Q1 2027 earnings at $6.41 EPS, Q2 2027 earnings at $8.21 EPS, Q3 2027 earnings at $8.05 EPS, Q4 2027 earnings at $8.76 EPS, FY2027 earnings at $31.43 EPS, Q2 2028 earnings at $9.56 EPS and FY2028 earnings at $36.64 EPS.

Several other equities analysts also recently issued reports on CAT. Sanford C. Bernstein reissued a "market perform" rating and set a $1,002.00 price target on shares of Caterpillar in a report on Wednesday, August 5th. Wells Fargo & Company upped their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 23rd. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a research note on Wednesday, August 5th. Weiss Ratings upgraded Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 19th. Finally, DA Davidson raised their target price on Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $995.52.

Caterpillar Price Performance

Shares of CAT opened at $821.25 on Wednesday. Caterpillar has a 12 month low of $416.44 and a 12 month high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. The stock has a fifty day moving average price of $863.27 and a 200 day moving average price of $839.74. The company has a market cap of $377.50 billion, a P/E ratio of 35.34, a PEG ratio of 1.41 and a beta of 1.60.

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

Hedge Funds Weigh In On Caterpillar

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System grew its holdings in Caterpillar by 105,696.1% during the second quarter. California State Teachers Retirement System now owns 747,331,911 shares of the industrial products company's stock worth $795,833,752,000 after acquiring an additional 746,625,522 shares during the period. BlackRock Inc. bought a new position in shares of Caterpillar during the 2nd quarter valued at about $40,457,153,000. Bank of America Corp DE acquired a new position in shares of Caterpillar in the 2nd quarter worth approximately $5,818,150,000. Diamant Asset Management Inc. grew its stake in shares of Caterpillar by 68,427.2% in the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after purchasing an additional 3,136,020 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Caterpillar in the 2nd quarter worth approximately $3,192,710,000. 70.98% of the stock is owned by institutional investors.

Insider Activity

In related news, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.33% of the stock is owned by company insiders.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s power-generation backlog reportedly reached $72 billion, reinforcing the view that demand from data centers and AI-related infrastructure could make the company less dependent on the traditional construction cycle. Caterpillar's Power Generation Backlog Just Hit $72 Billion
• Positive Sentiment: Recent coverage points to Caterpillar’s record backlog, strong earnings and raised 2026 outlook as key reasons for its roughly 95% one-year gain. The company’s latest reported quarter also exceeded EPS and revenue expectations, supporting investor confidence in its operating momentum. Caterpillar Gains 95% in a Year: Time to Buy, Sell or Hold the Stock?
• Positive Sentiment: Chief Digital Officer Ogi Redzic described how AI is changing construction work, highlighting Caterpillar’s efforts to use digital tools and automation to improve equipment productivity and customer operations. This could strengthen the company’s longer-term technology and services opportunity. Caterpillar’s Digital Chief Ogi Redzic on How A.I. Is Redefining Construction Work
• Neutral Sentiment: Industry coverage continues to identify Caterpillar as a leading construction-equipment company, supported by its global dealer network and cash-generation capabilities. However, the equipment showcase itself does not provide a new financial catalyst. Caterpillar vs. Corning: Which Stock Is a Better Buy in 2026?
• Negative Sentiment: At approximately 34 times earnings, Caterpillar trades at a demanding valuation after its major rally. Analysts note that the premium leaves the stock vulnerable to profit-taking or disappointment if backlog conversion, margins or the 2026 outlook weaken. Caterpillar Gains 95% in a Year: Time to Buy, Sell or Hold the Stock?

About Caterpillar

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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