Zacks Research Forecasts Increased Earnings for Caterpillar

Key Points

• Analysts at Zacks Research raised their Q1 2026 EPS estimate for Caterpillar from $4.55 to $4.62, reflecting positive sentiment for the industrial products company.
• Caterpillar's latest quarterly earnings revealed a shortfall, reporting $4.25 EPS versus a consensus estimate of $4.35, while its revenue of $14.25 billion also missed expectations.
• The company recently announced an increase in its quarterly dividend to $1.51, up from $1.41, indicating a commitment to returning value to shareholders.

Caterpillar Inc. (NYSE:CAT - Free Report) - Equities research analysts at Zacks Research raised their Q1 2026 earnings per share (EPS) estimates for Caterpillar in a research note issued to investors on Thursday, July 24th. Zacks Research analyst M. Das now expects that the industrial products company will post earnings of $4.62 per share for the quarter, up from their previous forecast of $4.55. The consensus estimate for Caterpillar's current full-year earnings is $19.86 per share.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Wednesday, April 30th. The industrial products company reported $4.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.35 by ($0.10). The company had revenue of $14.25 billion for the quarter, compared to analysts' expectations of $14.64 billion. Caterpillar had a net margin of 15.71% and a return on equity of 53.77%. The firm's quarterly revenue was down 9.8% on a year-over-year basis. During the same period in the previous year, the firm earned $5.60 EPS.

Several other research analysts have also recently issued reports on the company. Barclays lifted their target price on Caterpillar from $335.00 to $383.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Citigroup reissued a "buy" rating and issued a $420.00 price objective (up previously from $370.00) on shares of Caterpillar in a research report on Tuesday, June 24th. Melius raised Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a research report on Wednesday, July 9th. Truist Financial boosted their price objective on Caterpillar from $396.00 to $414.00 and gave the stock a "buy" rating in a research report on Monday, June 23rd. Finally, Morgan Stanley raised Caterpillar from an "underweight" rating to an "equal weight" rating and cut their price objective for the stock from $300.00 to $283.00 in a research report on Wednesday, April 16th. Seven research analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $419.33.

Caterpillar Stock Up 1.0%

Shares of NYSE:CAT traded up $4.20 during mid-day trading on Monday, hitting $438.32. 545,917 shares of the company traded hands, compared to its average volume of 2,671,982. The stock has a market cap of $206.46 billion, a P/E ratio of 21.37, a P/E/G ratio of 2.69 and a beta of 1.38. The company has a current ratio of 1.32, a quick ratio of 0.77 and a debt-to-equity ratio of 1.43. Caterpillar has a 12-month low of $267.30 and a 12-month high of $439.88. The stock has a 50-day moving average price of $382.09 and a two-hundred day moving average price of $353.44.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Monday, July 21st will be paid a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.38%. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. The ex-dividend date of this dividend is Monday, July 21st. Caterpillar's payout ratio is presently 29.43%.

Insider Activity

In related news, Director David Maclennan acquired 375 shares of the firm's stock in a transaction that occurred on Wednesday, May 7th. The shares were bought at an average cost of $320.70 per share, for a total transaction of $120,262.50. Following the purchase, the director owned 6,653 shares in the company, valued at $2,133,617.10. This trade represents a 5.97% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.33% of the company's stock.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently added to or reduced their stakes in the business. Catalyst Capital Advisors LLC increased its stake in Caterpillar by 72.1% in the 2nd quarter. Catalyst Capital Advisors LLC now owns 907 shares of the industrial products company's stock worth $352,000 after acquiring an additional 380 shares during the last quarter. Sharper & Granite LLC bought a new position in Caterpillar in the 2nd quarter worth about $239,000. Carnegie Investment Counsel increased its stake in Caterpillar by 38.4% in the 2nd quarter. Carnegie Investment Counsel now owns 3,365 shares of the industrial products company's stock worth $1,306,000 after acquiring an additional 934 shares during the last quarter. CAP Partners LLC increased its stake in Caterpillar by 3.5% in the 2nd quarter. CAP Partners LLC now owns 839 shares of the industrial products company's stock worth $326,000 after acquiring an additional 28 shares during the last quarter. Finally, FSM Wealth Advisors LLC increased its stake in Caterpillar by 35.0% in the 2nd quarter. FSM Wealth Advisors LLC now owns 1,169 shares of the industrial products company's stock worth $458,000 after acquiring an additional 303 shares during the last quarter. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Company Profile

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.