Q3 EPS Estimates for Caterpillar Lifted by Zacks Research

Key Points

• Zacks Research slightly raised its Q3 2026 EPS estimate for Caterpillar to $6.29 from $6.28 and kept a Strong-Buy rating on the stock.
• Caterpillar’s latest quarter beat expectations, posting $5.54 EPS on $17.41 billion in revenue, with sales up 22.2% year over year.
• The company also increased its quarterly dividend to $1.63 per share from $1.51, while Wall Street remains broadly positive with an average rating of Moderate Buy and an average price target of $941.45.

Caterpillar Inc. (NYSE:CAT - Free Report) - Stock analysts at Zacks Research boosted their Q3 2026 earnings per share (EPS) estimates for shares of Caterpillar in a note issued to investors on Friday, June 26th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $6.29 for the quarter, up from their prior estimate of $6.28. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $24.66 per share. Zacks Research also issued estimates for Caterpillar's Q4 2026 earnings at $6.52 EPS, FY2026 earnings at $24.36 EPS, Q1 2027 earnings at $6.13 EPS, Q2 2027 earnings at $7.13 EPS, Q3 2027 earnings at $7.33 EPS, Q4 2027 earnings at $8.04 EPS, FY2027 earnings at $28.63 EPS, Q1 2028 earnings at $7.56 EPS and FY2028 earnings at $33.74 EPS.

A number of other research firms have also recently commented on CAT. Williams Trading set a $825.00 price target on shares of Caterpillar in a report on Tuesday, March 10th. Oppenheimer set a $980.00 price objective on shares of Caterpillar and gave the stock an "outperform" rating in a research report on Friday, May 1st. Wells Fargo & Company raised their target price on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. boosted their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. Finally, Barclays upped their price target on Caterpillar from $700.00 to $800.00 and gave the stock an "equal weight" rating in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $941.45.

Caterpillar Stock Performance

Shares of CAT stock opened at $996.73 on Monday. The company has a market cap of $459.08 billion, a price-to-earnings ratio of 49.61, a price-to-earnings-growth ratio of 1.97 and a beta of 1.59. Caterpillar has a 52 week low of $382.75 and a 52 week high of $1,057.07. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The firm has a 50 day moving average of $897.41 and a 200-day moving average of $756.21.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same period last year, the company posted $4.25 EPS. The business's quarterly revenue was up 22.2% on a year-over-year basis.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be issued a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a yield of 0.7%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar's dividend payout ratio is presently 30.06%.

Insiders Place Their Bets

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Lange Bob De sold 24,222 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total value of $22,354,968.24. Following the completion of the transaction, the insider owned 86,029 shares in the company, valued at $79,397,884.68. The trade was a 21.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,773 shares of company stock worth $87,642,635 in the last ninety days. 0.33% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Caterpillar

Hedge funds have recently made changes to their positions in the business. Lam Group Inc. bought a new position in shares of Caterpillar during the 1st quarter valued at approximately $26,000. Torren Management LLC purchased a new position in Caterpillar in the fourth quarter valued at approximately $27,000. Frazier Financial Advisors LLC grew its holdings in Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 33 shares during the period. IFS Advisors LLC bought a new stake in shares of Caterpillar in the fourth quarter valued at $31,000. Finally, Rialto Wealth Management LLC raised its stake in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock valued at $32,000 after buying an additional 18 shares during the period. 70.98% of the stock is currently owned by institutional investors.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Robert W. Baird raised its price target on Caterpillar to $1,200 from $1,165 and reiterated an outperform rating, signaling continued upside confidence. MarketScreener
• Positive Sentiment: Caterpillar’s earnings backdrop remains strong: the company recently beat estimates with higher-than-expected revenue and EPS, supported by robust demand and a record backlog theme that has helped the stock outperform this year.
• Neutral Sentiment: Caterpillar Foundation announced a $2.5 million initiative tied to America’s 250th anniversary, which is positive for corporate image but likely limited direct impact on shares. Caterpillar Foundation Announces $2.5 Million Initiative in Celebration of America's 250th Anniversary
• Negative Sentiment: Investor sentiment is being weighed down by margin pressure: a Zacks note said Q1 2026 operating margin slipped to 18% as tariff-related costs rose, and management expects $2.2 billion to $2.4 billion of tariff impact for 2026. Caterpillar's Operating Margins Remain Under Pressure: Rebound Ahead?
• Negative Sentiment: Broad market coverage said Caterpillar was one of the main drags on the Dow in Friday trading, suggesting weakness in the stock was large enough to influence the index. Nasdaq Rises. Caterpillar and Goldman Are Dragging on the Dow.
• Negative Sentiment: Recent economic data showed advance trade in goods falling in May, which can be read as a softer trade backdrop for industrial-demand names like Caterpillar. Advance Trade in Goods fall in May

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.

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