Q2 EPS Estimates for Caterpillar Raised by Zacks Research

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for Caterpillar to $5.39 (from $5.28) and updated forward forecasts including FY2026 EPS of $21.63 and Q4 2026 EPS of $6.15.
• Analyst sentiment is broadly positive (16 Buys, 7 Holds, 1 Sell) with an average target price of $741.68, while the stock trades near its 12‑month high (~$787) with a market cap of $366.4B and a P/E of 41.8.
• Caterpillar is seeing an AI/data‑center-driven boost in demand for power equipment and has a roughly $51B backlog supporting revenue visibility; the board maintained a $1.51 quarterly dividend even as insiders sold about $88.6M of stock in the past 90 days.

Caterpillar Inc. (NYSE:CAT - Free Report) - Investment analysts at Zacks Research boosted their Q2 2026 earnings estimates for shares of Caterpillar in a report released on Thursday, April 9th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $5.39 per share for the quarter, up from their previous forecast of $5.28. The consensus estimate for Caterpillar's current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar's Q4 2026 earnings at $6.15 EPS, FY2026 earnings at $21.63 EPS, Q1 2027 earnings at $5.33 EPS, Q2 2027 earnings at $6.14 EPS and Q1 2028 earnings at $6.30 EPS.

Several other brokerages have also recently weighed in on CAT. Weiss Ratings reiterated a "buy (b)" rating on shares of Caterpillar in a research note on Monday, December 29th. Morgan Stanley lifted their price objective on shares of Caterpillar from $400.00 to $425.00 and gave the stock an "underweight" rating in a research note on Tuesday, February 3rd. CICC Research started coverage on shares of Caterpillar in a research note on Friday, February 6th. They issued an "outperform" rating for the company. Barclays lifted their price objective on shares of Caterpillar from $625.00 to $700.00 and gave the stock an "equal weight" rating in a research note on Tuesday, March 31st. Finally, Citigroup raised their target price on shares of Caterpillar from $760.00 to $785.00 and gave the company a "buy" rating in a report on Monday, March 9th. Sixteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Caterpillar presently has a consensus rating of "Moderate Buy" and an average target price of $741.68.

Caterpillar Price Performance

Shares of Caterpillar stock opened at $787.46 on Friday. Caterpillar has a twelve month low of $279.80 and a twelve month high of $795.52. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. The company has a 50-day simple moving average of $723.94 and a two-hundred day simple moving average of $621.03. The stock has a market capitalization of $366.39 billion, a price-to-earnings ratio of 41.84, a price-to-earnings-growth ratio of 1.82 and a beta of 1.52.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 earnings per share for the quarter, topping the consensus estimate of $4.67 by $0.49. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business had revenue of $19.13 billion during the quarter, compared to analysts' expectations of $17.81 billion. During the same quarter in the previous year, the company earned $5.14 EPS. The business's revenue was up 17.9% on a year-over-year basis.

Caterpillar Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Investors of record on Monday, April 20th will be issued a dividend of $1.51 per share. The ex-dividend date of this dividend is Monday, April 20th. This represents a $6.04 annualized dividend and a dividend yield of 0.8%. Caterpillar's payout ratio is 32.09%.

Insider Activity at Caterpillar

In related news, insider Rodney Michael Shurman sold 2,278 shares of Caterpillar stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $759.61, for a total transaction of $1,730,391.58. Following the sale, the insider directly owned 1,443 shares in the company, valued at $1,096,117.23. This trade represents a 61.22% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Anthony D. Fassino sold 7,891 shares of Caterpillar stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $776.90, for a total transaction of $6,130,517.90. Following the sale, the insider owned 46,643 shares in the company, valued at approximately $36,236,946.70. This represents a 14.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 125,950 shares of company stock worth $88,577,390 in the last ninety days. Insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

Several institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of Caterpillar by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock worth $26,572,681,000 after purchasing an additional 442,164 shares during the last quarter. State Street Corp grew its stake in shares of Caterpillar by 1.1% in the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after purchasing an additional 385,204 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Caterpillar by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock worth $6,072,572,000 after purchasing an additional 94,524 shares during the last quarter. Fisher Asset Management LLC grew its stake in shares of Caterpillar by 0.6% in the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock worth $5,438,408,000 after purchasing an additional 54,069 shares during the last quarter. Finally, Bank of America Corp DE grew its stake in shares of Caterpillar by 16.0% in the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock worth $3,860,457,000 after purchasing an additional 928,974 shares during the last quarter. Institutional investors own 70.98% of the company's stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Market/rally lift — Caterpillar was highlighted amid a Dow advance that pushed industrial names higher, providing near‑term momentum into the session. Dow's 312-point rally highlighted by gains in shares of Amazon.com Inc., Caterpillar
• Positive Sentiment: Fundamentals & momentum — Coverage notes strong recent price performance alongside record sales and earnings beats, keeping investor interest high as analysts and traders re‑assess CAT’s industrial exposure. Caterpillar (CAT) Laps the Stock Market: Here's Why
• Positive Sentiment: AI/data‑center tailwind and backlog — Analysts and market commentary point to growing demand for power/generator equipment from AI data centers plus a roughly $51B backlog that supports revenue visibility and upside to sales. Caterpillar: AI-Driven Power Demand And Strong Backlog Support Continued Upside
• Positive Sentiment: Dividend continuity — Board maintained the quarterly dividend ($1.51/share), signaling cash‑flow stability and returning capital to shareholders. That supports investor confidence in the business mix. Caterpillar Inc. Maintains Dividend
• Neutral Sentiment: Orderly CFO transition — CFO Andrew Bonfield will retire Oct. 1, 2026, with internal successor Kyle Epley taking over May 1; the planned handover reduces execution risk vs. an abrupt departure. Caterpillar Elects New Chief Financial Officer
• Neutral Sentiment: Mixed analyst signals — Erste raised FY2026 EPS estimates (modestly bullish), while some firms' price targets remain clustered below or around current levels; divergent targets keep valuation debates alive. MarketBeat CAT profile (estimates & targets)
• Neutral Sentiment: Bernstein adjusted target — Sanford C. Bernstein raised its price target to $769 but kept a "market perform" rating (target sits near/just below the market), a mixed read for long‑term upside. Bernstein adjusts price target on Caterpillar to $769
• Negative Sentiment: Insider & institutional selling — Data summaries show significant insider sales and large institutional reductions by some funds, which can weigh on sentiment if sustained. Caterpillar: AI-Driven Power Demand And Strong Backlog Support Continued Upside (includes ownership/insider notes)

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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