Zacks Research Forecasts Increased Earnings for Caterpillar

Key Points

• Zacks Research raised its Q1 2026 EPS estimate for Caterpillar to $4.48 (from $4.44) and expects earnings to keep rising, projecting FY2026 EPS of $21.74 and FY2027 EPS of $24.99.
• Multiple brokerages have lifted price targets and ratings; MarketBeat shows a consensus of Moderate Buy with a consensus price target of $767.77 (16 Buys, 7 Holds, 1 Sell).
• Caterpillar recently beat the quarter’s estimates (EPS $5.16 vs. $4.67; revenue $19.13B vs. $17.81B), declared a quarterly dividend of $1.51 (paid May 19), while insiders have been net sellers (about 125,950 shares worth ~$88.6M sold over 90 days).

Caterpillar Inc. (NYSE:CAT - Free Report) - Equities research analysts at Zacks Research boosted their Q1 2026 earnings per share (EPS) estimates for shares of Caterpillar in a research note issued to investors on Friday, April 24th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $4.48 per share for the quarter, up from their previous forecast of $4.44. The consensus estimate for Caterpillar's current full-year earnings is $22.89 per share. Zacks Research also issued estimates for Caterpillar's Q2 2026 earnings at $5.40 EPS, FY2026 earnings at $21.74 EPS, Q1 2027 earnings at $5.40 EPS, Q2 2027 earnings at $6.17 EPS, FY2027 earnings at $24.99 EPS and Q1 2028 earnings at $6.36 EPS.

CAT has been the topic of several other research reports. Raymond James Financial reaffirmed a "market perform" rating on shares of Caterpillar in a research note on Wednesday, January 7th. Wells Fargo & Company lifted their price target on Caterpillar from $870.00 to $960.00 and gave the company an "overweight" rating in a research report on Tuesday, April 21st. Argus lifted their price target on Caterpillar from $625.00 to $820.00 and gave the company a "buy" rating in a research report on Wednesday, February 11th. Barclays lifted their price target on Caterpillar from $625.00 to $700.00 and gave the company an "equal weight" rating in a research report on Tuesday, March 31st. Finally, Citigroup lifted their price target on Caterpillar from $785.00 to $905.00 and gave the company a "buy" rating in a research report on Monday, April 13th. Sixteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $767.77.

Caterpillar Stock Down 0.0%

Shares of Caterpillar stock opened at $830.59 on Monday. The business's fifty day moving average price is $740.91 and its two-hundred day moving average price is $647.67. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94. The company has a market capitalization of $386.46 billion, a P/E ratio of 44.13, a PEG ratio of 1.95 and a beta of 1.52. Caterpillar has a 1-year low of $302.17 and a 1-year high of $845.27.

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

Caterpillar Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th will be given a dividend of $1.51 per share. The ex-dividend date is Monday, April 20th. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. Caterpillar's dividend payout ratio (DPR) is 32.09%.

Insiders Place Their Bets

In related news, CEO Joseph E. Creed sold 2,500 shares of Caterpillar stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $718.93, for a total value of $1,797,325.00. Following the transaction, the chief executive officer directly owned 35,083 shares in the company, valued at $25,222,221.19. The trade was a 6.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Lange Bob De sold 22,656 shares of Caterpillar stock in a transaction on Friday, February 6th. The stock was sold at an average price of $720.11, for a total value of $16,314,812.16. Following the completion of the transaction, the insider owned 79,953 shares in the company, valued at $57,574,954.83. The trade was a 22.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 125,950 shares of company stock worth $88,577,390. Corporate insiders own 0.33% of the company's stock.

Hedge Funds Weigh In On Caterpillar

Hedge funds have recently modified their holdings of the stock. Lam Group Inc. acquired a new position in shares of Caterpillar in the 1st quarter worth $26,000. Torren Management LLC acquired a new position in shares of Caterpillar in the 4th quarter worth $27,000. Frazier Financial Advisors LLC grew its holdings in shares of Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after acquiring an additional 33 shares during the last quarter. IFS Advisors LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $31,000. Finally, Cornerstone Financial Management LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $32,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Robert W. Baird upgraded CAT and raised its price target sharply (from $805 to $940), citing stronger fundamentals and boosting short‑term sentiment — this upgrade helped drive recent upside. Caterpillar NYSE: CAT Stock Price Up 3.3% Following Analyst Upgrade
• Positive Sentiment: Caterpillar reaffirmed its dividend (quarterly $1.51, paid May 19), supporting shareholder-return expectations and attracting income-focused investors. Caterpillar Inc. (CAT) Asserts Commitment to Shareholder Value Amid Management Change
• Positive Sentiment: Analysts and screens expect Caterpillar earnings to continue growing into the next report — that prospect of further earnings beats is a fundamental positive supporting the rally. Caterpillar (CAT) Earnings Expected to Grow: Should You Buy?
• Positive Sentiment: Longer-term thematic coverage highlights CAT’s exposure to AI/data‑center power and automation, reframing the company beyond traditional heavy equipment and supporting a higher multiple for some investors. More Than Just Dirt: Caterpillar Is the AI Stock Nobody Saw Coming
• Neutral Sentiment: CFO Andrew Bonfield announced retirement in October; internal successor Kyle Epley will take over in May — management continuity reduces disruption risk, but any leadership change bears watching. Caterpillar (CAT) CFO Andrew Bonfield to Retire
• Neutral Sentiment: Several pieces call out the very strong short‑term run (30–90 day gains) and prompt a valuation check — this fuels both bullish momentum and investor caution about stretched multiples. Caterpillar (CAT) Valuation Check After A Strong Short Term Share Price Run
• Negative Sentiment: Morgan Stanley raised its numerical target slightly but kept an Underweight rating, signaling macro and cyclical downside risk to earnings that could pressure the stock if industrial demand softens. Morgan Stanley Ups Caterpillar (CAT) Target to $430, Flags Macro Risks to Earnings
• Negative Sentiment: Critical commentary and "avoid" pieces warn that the post‑earnings rally may have priced in too much growth — these narratives can accelerate profit‑taking by momentum traders. 3 Reasons to Avoid CAT and 1 Stock to Buy Instead

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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