Caterpillar (NYSE:CAT) Posts Earnings Results, Beats Expectations By $0.49 EPS

Caterpillar (NYSE:CAT) issued its quarterly earnings data on Thursday. The industrial products company reported $5.16 EPS for the quarter, topping the consensus estimate of $4.67 by $0.49, FiscalAI reports. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The firm had revenue of $19.13 billion for the quarter, compared to analyst estimates of $17.81 billion. During the same period in the prior year, the business posted $5.14 EPS. The business’s revenue for the quarter was up 17.9% compared to the same quarter last year.

Here are the key takeaways from Caterpillar’s conference call:

• Caterpillar delivered record full‑year sales and revenues of $67.6 billion and a Q4 single‑quarter record of $19.1 billion, with backlog growing to a record $51 billion (up 71% YoY) on strong orders across all segments.
• Tariffs are a significant headwind — net incremental tariffs were about $1.7 billion in 2025 and are expected to be roughly $2.6 billion in 2026 (including ~$800 million in Q1), putting pressure on margins despite mitigation actions.
• Power & Energy was the fastest‑growing segment (power generation > $10 billion in 2025, +30%+ YoY); the company is expanding large‑engine and turbine capacity to support multi‑gigawatt data center and gas‑compression demand, including a recently announced 2 GW prime‑power order.
• Profitability and cash dynamics are mixed — full‑year adjusted operating margin was 17.2% (within target) and MP&E‑free cash flow was $9.5 billion, while 2026 margins are expected higher excluding tariffs but near the bottom of the target range including tariffs and MP&E‑free cash flow should be slightly lower due to ~$3.5 billion of CapEx.
• Services, digital initiatives, and shareholder returns remain priorities — services revenue reached $24 billion with >1.6 million connected assets and a $30 billion 2030 goal, and the company returned $7.9 billion to shareholders in 2025 with plans for additional repurchases.

Caterpillar Stock Up 0.6%

NYSE:CAT traded up $3.57 during trading hours on Thursday, hitting $646.85. The company’s stock had a trading volume of 1,339,390 shares, compared to its average volume of 2,303,746. The stock has a market capitalization of $302.71 billion, a P/E ratio of 33.20, a price-to-earnings-growth ratio of 2.46 and a beta of 1.57. The company has a current ratio of 1.38, a quick ratio of 0.86 and a debt-to-equity ratio of 1.34. The stock has a fifty day moving average of $599.82 and a 200-day moving average of $516.28. Caterpillar has a 52-week low of $267.30 and a 52-week high of $679.99.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th will be given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Tuesday, January 20th. Caterpillar’s payout ratio is 31.01%.

Insiders Place Their Bets

In related news, CAO William E. Schaupp sold 1,200 shares of the stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $572.22, for a total transaction of $686,664.00. Following the completion of the sale, the chief accounting officer directly owned 1,323 shares of the company’s stock, valued at $757,047.06. This trade represents a 47.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Lange Bob De sold 14,638 shares of Caterpillar stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $562.36, for a total transaction of $8,231,825.68. Following the completion of the transaction, the insider owned 80,209 shares in the company, valued at approximately $45,106,333.24. This trade represents a 15.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 54,729 shares of company stock worth $31,084,308. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Caterpillar

Several hedge funds and other institutional investors have recently made changes to their positions in CAT. Strive Asset Management LLC purchased a new position in Caterpillar during the third quarter worth about $66,000. Silicon Valley Capital Partners increased its position in Caterpillar by 27.3% during the 3rd quarter. Silicon Valley Capital Partners now owns 191 shares of the industrial products company’s stock worth $91,000 after purchasing an additional 41 shares during the period. Darwin Wealth Management LLC purchased a new position in shares of Caterpillar during the 2nd quarter worth approximately $96,000. Triumph Capital Management purchased a new stake in shares of Caterpillar in the third quarter valued at approximately $140,000. Finally, Turning Point Benefit Group Inc. acquired a new position in Caterpillar during the third quarter worth $160,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Wells Fargo & Company raised their price target on Caterpillar from $675.00 to $702.00 and gave the stock an “overweight” rating in a research report on Friday, January 23rd. Citigroup raised their target price on Caterpillar from $690.00 to $710.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. Jefferies Financial Group boosted their price target on shares of Caterpillar from $700.00 to $750.00 and gave the stock a “buy” rating in a research note on Tuesday. Evercore ISI raised their price objective on shares of Caterpillar from $476.00 to $630.00 and gave the company an “outperform” rating in a research note on Monday, November 17th. Finally, Rothschild & Co Redburn lifted their price objective on shares of Caterpillar from $420.00 to $650.00 and gave the company a “neutral” rating in a report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $640.20.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 results beat expectations — adjusted EPS $5.16 vs. consensus ~$4.67 and revenue $19.13B vs. ~$17.8B, signalling stronger-than-expected core demand. Caterpillar Stock Hits Record Highs After Earnings
• Positive Sentiment: Power & energy segment strength — sales to AI data centers and hyperscale operators materially lifted revenue and backlog, creating a new, higher-margin growth channel. CAT Stock Rises On Huge Earnings Beat As Backlog Soars
• Positive Sentiment: Strategic deal flow: Caterpillar joined a partnership to supply ~2 GW of fast-response generator sets for a major hyperscale AI power project, supporting multi-year equipment demand. American Intelligence & Power Forms Strategic Alliance with Caterpillar
• Positive Sentiment: Strong cash generation and capital returns — $11.7B enterprise operating cash flow in 2025 and $7.9B deployed to buybacks/dividends, which supports EPS and shareholder value. Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Company reported record quarterly and full-year revenues, demonstrating scale — useful context for valuation but already reflected in market moves. Caterpillar Sales Jump, Fueled by Power & Energy for Data Centers
• Negative Sentiment: Caterpillar warned of a roughly $2.6 billion tariff hit in 2026 and said higher tariffs have pressured margins — a material near-term earnings risk to monitor. Caterpillar flags $2.6 billion tariff hit in 2026
• Negative Sentiment: Investments and higher input costs are pressuring profit margins despite revenue growth — analysts note investments could keep near-term EPS growth constrained. Caterpillar Expected to Post Higher 4Q Revenue, While Investments Pressure Profit

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.