Zacks Research Increases Earnings Estimates for Caterpillar

Key Points

• Zacks Research raised Caterpillar’s Q3 2026 EPS estimate to $6.36 from $6.29 and kept a Strong-Buy rating on the stock, signaling a more optimistic outlook for future earnings.
• Wall Street sentiment remains broadly positive, with several firms recently lifting price targets; the consensus rating is now Moderate Buy with an average target price of $980.57.
• Caterpillar’s latest results were strong, as the company beat quarterly expectations with $5.54 EPS and $17.41 billion in revenue, while also announcing a higher quarterly dividend of $1.63 per share.

Caterpillar Inc. (NYSE:CAT - Free Report) - Stock analysts at Zacks Research upped their Q3 2026 earnings per share (EPS) estimates for Caterpillar in a research note issued to investors on Wednesday, July 15th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $6.36 for the quarter, up from their previous estimate of $6.29. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $24.85 per share. Zacks Research also issued estimates for Caterpillar's Q4 2026 earnings at $6.61 EPS, FY2026 earnings at $24.51 EPS, Q1 2027 earnings at $6.15 EPS, Q2 2027 earnings at $7.17 EPS, Q3 2027 earnings at $7.46 EPS, Q4 2027 earnings at $8.22 EPS, FY2027 earnings at $29.01 EPS, Q1 2028 earnings at $7.57 EPS, Q2 2028 earnings at $8.77 EPS and FY2028 earnings at $34.31 EPS.

CAT has been the topic of several other research reports. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Caterpillar in a report on Friday, May 8th. Evercore reissued an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a research report on Monday, May 11th. Citigroup raised their price objective on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday. Bank of America boosted their target price on shares of Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Finally, JPMorgan Chase & Co. raised their price target on Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $980.57.

Caterpillar Stock Performance

Shares of CAT opened at $914.19 on Thursday. Caterpillar has a 1 year low of $403.32 and a 1 year high of $1,073.46. The stock has a market capitalization of $421.07 billion, a PE ratio of 45.50, a PEG ratio of 1.83 and a beta of 1.57. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The stock has a 50-day simple moving average of $931.98 and a 200-day simple moving average of $790.77.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS 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 analysts' expectations of $16.53 billion. During the same period in the previous year, the firm posted $4.25 EPS. Caterpillar's revenue for the quarter was up 22.2% on a year-over-year basis.

Hedge Funds Weigh In On Caterpillar

Hedge funds have recently modified their holdings of the business. Diamant Asset Management Inc. boosted its stake in Caterpillar by 68,427.2% during the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after purchasing an additional 3,136,020 shares during the period. Capital International Investors acquired a new position in Caterpillar in the fourth quarter valued at $1,225,317,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Caterpillar by 573.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock valued at $861,947,000 after buying an additional 1,281,087 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of 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. Finally, Cynosure Group LLC grew its holdings in shares of Caterpillar by 8,359.6% during the fourth quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock worth $294,314,000 after buying an additional 507,681 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Caterpillar news, insider Jason Kaiser sold 5,642 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the transaction, the insider owned 9,594 shares of the company's stock, valued at approximately $8,471,789.82. This trade represents a 37.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction dated 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 in the company, valued at $42,210,388.80. This trade represents a 26.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 95,773 shares of company stock valued at $87,642,635 over the last ninety days. Company insiders own 0.33% of the company's stock.

Caterpillar Increases Dividend

The business also recently declared 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. The ex-dividend date is Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.7%. This is an increase from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio (DPR) is 30.06%.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research lifted Caterpillar’s forward earnings estimates across multiple quarters and fiscal years, signaling expectations for stronger profitability ahead.
• Positive Sentiment: The firm reiterated a Strong-Buy rating on Caterpillar, which can reinforce bullish sentiment toward the stock.
• Neutral Sentiment: Wall Street is still expecting Caterpillar to report a double-digit rise in second-quarter profits when the company reports earnings soon.
• Negative Sentiment: CAT has been under pressure recently, with the stock closing lower in the latest session and trading below its recent level, suggesting broader market or valuation concerns may still be weighing on shares.

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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