Q3 EPS Estimates for Caterpillar Boosted by Zacks Research

Key Points

• Zacks Research raised Caterpillar’s Q3 2026 EPS estimate slightly to $6.37 from $6.36 and maintains a “Strong Buy” rating. Its estimates imply continued earnings growth, reaching $30.14 per share for fiscal 2027 and $35.97 for fiscal 2028.
• Caterpillar recently delivered a strong quarter, reporting $8.17 EPS versus the $6.22 consensus and revenue of $20.54 billion, up 23.7% year over year. Analysts collectively rate the stock “Moderate Buy,” with an average price target of $995.52.
• The company increased its quarterly dividend to $1.63 per share from $1.51, equivalent to a $6.52 annual payout and a 0.8% yield. However, after a 113% one-year rally, the stock may face profit-taking and concerns about weaker industrial demand.

Caterpillar Inc. (NYSE:CAT - Free Report) - Zacks Research lifted their Q3 2026 earnings per share (EPS) estimates for shares of Caterpillar in a report issued on Tuesday, August 18th. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $6.37 for the quarter, up from their previous estimate of $6.36. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $26.56 per share. Zacks Research also issued estimates for Caterpillar's Q1 2027 earnings at $6.27 EPS, Q3 2027 earnings at $7.59 EPS, Q4 2027 earnings at $8.38 EPS, FY2027 earnings at $30.14 EPS, Q1 2028 earnings at $7.94 EPS, Q2 2028 earnings at $9.37 EPS and FY2028 earnings at $35.97 EPS.

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

Other equities research analysts have also recently issued research reports about the stock. Barclays raised their target price on shares of Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Morgan Stanley set a $915.00 price target on Caterpillar and gave the company an "equal weight" rating in a report on Friday, May 1st. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Caterpillar in a report on Wednesday, August 5th. Robert W. Baird set a $970.00 price objective on Caterpillar in a research report on Wednesday, August 5th. Finally, Truist Financial set a $980.00 price target on Caterpillar in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $995.52.

Caterpillar Stock Performance

Shares of NYSE CAT opened at $843.54 on Wednesday. The firm's 50-day moving average price is $913.03 and its 200-day moving average price is $830.99. Caterpillar has a 52-week low of $410.52 and a 52-week high of $1,073.46. The company has a market cap of $387.76 billion, a PE ratio of 36.30, a PEG ratio of 1.53 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

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 paid a dividend of $1.63 per share. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. Caterpillar's dividend payout ratio is presently 28.06%.

Institutional Investors Weigh In On Caterpillar

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CAT. Lam Group Inc. purchased a new position in shares of Caterpillar during the 1st quarter valued at $26,000. Torren Management LLC bought a new stake in Caterpillar during the fourth quarter valued at about $27,000. Frazier Financial Advisors LLC lifted its position in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 33 shares in the last quarter. Decker Retirement Planning Inc. boosted its stake in shares of Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock worth $29,000 after acquiring an additional 22 shares during the period. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Caterpillar during the fourth quarter worth about $32,000. Institutional investors own 70.98% of the company's stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s volume-driven growth across all three business segments led to a sharp upgrade in its 2026 sales outlook, supporting the company’s growth case. Caterpillar's Volume Gains Drive Growth
• Positive Sentiment: Caterpillar announced up to $3 million for workforce development in Arkansas as part of its five-year, $100 million initiative. The investment could strengthen the company’s future manufacturing and technician labor pipeline, although the near-term earnings impact is likely limited. Caterpillar Expands Workforce Initiative to Arkansas
• Neutral Sentiment: After rising 113% over the past year, Caterpillar is attracting increased attention over whether its strong rally can continue. The sharp appreciation may leave the stock more vulnerable to profit-taking if growth expectations soften. How High Can CAT Stock Soar?
• Neutral Sentiment: Caterpillar was included among high-efficiency stocks whose key financial ratios exceed industry averages, reinforcing its operating-quality profile but providing limited new information on near-term earnings. High-Efficiency Stocks
• Negative Sentiment: Weaker-than-expected U.S. industrial production in July raised concerns about cooling demand for industrial equipment. Investors are now testing whether Caterpillar’s record backlog can withstand a broader slowdown. Weaker U.S. Industrial Output Data
• Negative Sentiment: The broader unwind in AI and semiconductor stocks weighed on Caterpillar and other Dow heavyweights, as investors viewed the company as having indirect exposure to the potentially faltering AI infrastructure trade. The Stealth AI Stocks Are Dragging Down the Dow

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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