Zacks Research Expects Increased Earnings for Caterpillar

Key Points

• Zacks Research raised its FY2026 EPS estimate for Caterpillar to $24.18 from $24.09, and also laid out higher earnings expectations through FY2028. The revised forecast remains slightly below the broader consensus estimate of $24.68 for the current full year.
• Caterpillar’s latest quarter beat expectations with EPS of $5.54 versus $4.65 expected, while revenue rose 22.2% year over year to $17.42 billion. The company also posted strong profitability, including a 48.21% return on equity.
• Analyst sentiment remains broadly positive, with multiple firms raising price targets and the stock carrying a “Moderate Buy” consensus. Caterpillar has also benefited from optimism around AI-driven data center power demand and other growth tailwinds.

Caterpillar Inc. (NYSE:CAT - Free Report) - Analysts at Zacks Research boosted their FY2026 earnings per share (EPS) estimates for shares of Caterpillar in a research note issued to investors on Friday, June 5th. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $24.18 for the year, up from their prior forecast of $24.09. The consensus estimate for Caterpillar's current full-year earnings is $24.68 per share. Zacks Research also issued estimates for Caterpillar's Q4 2026 earnings at $6.35 EPS, Q1 2027 earnings at $6.06 EPS, Q2 2027 earnings at $7.06 EPS, Q3 2027 earnings at $7.24 EPS, Q4 2027 earnings at $7.93 EPS, FY2027 earnings at $28.28 EPS, Q1 2028 earnings at $7.42 EPS and FY2028 earnings at $33.25 EPS.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.42 billion during the quarter, compared to analysts' expectations of $16.53 billion. During the same period last year, the business posted $4.25 EPS. Caterpillar's revenue for the quarter was up 22.2% on a year-over-year basis.

Several other brokerages have also recently issued reports on CAT. Bank of America lifted their price objective on Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Barclays lifted their price objective on Caterpillar from $700.00 to $800.00 and gave the company an "equal weight" rating in a research note on Friday, May 1st. Evercore reiterated an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Finally, Wells Fargo & Company lifted their price objective on Caterpillar from $960.00 to $1,050.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. Sixteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $933.27.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $904.89 on Monday. The business has a 50-day moving average of $831.99 and a 200 day moving average of $715.57. Caterpillar has a 12 month low of $352.26 and a 12 month high of $946.83. The stock has a market capitalization of $416.79 billion, a price-to-earnings ratio of 45.04, a price-to-earnings-growth ratio of 1.78 and a beta of 1.59. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81.

Caterpillar Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Investors of record on Monday, April 20th were paid a dividend of $1.51 per share. The ex-dividend date was Monday, April 20th. This represents a $6.04 annualized dividend and a yield of 0.7%. Caterpillar's payout ratio is presently 30.06%.

Insider Activity

In related news, 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 transaction of $22,354,968.24. Following the completion of the sale, the insider owned 86,029 shares in the company, valued at $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Anthony D. Fassino sold 16,283 shares of the business's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the sale, the insider owned 46,041 shares of the company's stock, valued at approximately $42,210,388.80. The trade was a 26.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 95,773 shares of company stock valued at $87,642,635 over the last 90 days. Insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Several institutional investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP increased its position in Caterpillar by 3,949.8% during the third quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock worth $2,494,568,000 after buying an additional 5,098,964 shares during the period. Diamant Asset Management Inc. increased its position in Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after buying an additional 3,136,020 shares during the period. Capital International Investors acquired a new position in Caterpillar during the fourth quarter worth approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. increased its position in Caterpillar by 573.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock worth $861,947,000 after buying an additional 1,281,087 shares during the period. Finally, Bank of America Corp DE increased its position in Caterpillar by 16.0% during 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 buying an additional 928,974 shares during the period. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is benefiting from strong demand tied to data center construction and rising power needs, with coverage highlighting record quarterly results and improving sentiment around its power and energy business. Data Center Power Demands Push This Dividend Aristocrat to All Time Highs
• Positive Sentiment: Analysts and commentators remain constructive on Caterpillar’s growth outlook, citing durable tailwinds from AI-related infrastructure spending and a bullish price target in the latest research note. Caterpillar Setting The Pace For Growth In Power And Energy
• Positive Sentiment: Trump administration tariff cuts on farm and construction equipment are being viewed as a margin boost for Caterpillar’s core products, which could support earnings and sentiment. Trump Just Gave Caterpillar Stock a Boost. What to Know.
• Positive Sentiment: Additional coverage framed Caterpillar as one of the stocks poised to benefit from lower equipment tariffs, reinforcing the recent bullish narrative. When Trump Cuts Tariffs on Farm and Construction Equipment, These 5 Stocks Win Big
• Neutral Sentiment: Several articles were more general or commentary-driven, including a decade-long return retrospective and broader construction-stocks roundups, so they are less likely to move the shares directly. If You Invested $1000 in Caterpillar a Decade Ago, This is How Much It'd Be Worth Now
• Neutral Sentiment: Non-fundamental items such as an unrelated garden-caterpillar story and a political donation tracker do not appear to have a direct impact on Caterpillar’s business outlook. New caterpillar that can 'send you to A&E' breeding rapidly in gardens

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.

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.