Caterpillar

Caterpillar makes construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. It has three main segments: Power & Energy, Construction Industries and Resource Industries. Its Financial Products segment, mainly Cat Financial, lends to customers and dealers. It sells through a worldwide network of dealers, which also give parts and service.

Sales and revenues were $67.6 billion in 2025 and $58.6 billion in the first nine months of 2026. In Q3 2026, Power & Energy was the largest segment, with sales of $8.78 billion, and sales for power generation, mainly turbines and large engines for data centers, rose 30%. Caterpillar is based in Irving, Texas.

The market prices Caterpillar for the risk that its record results are the top of a cycle. Sales and revenues rose 17% to $20.7 billion in Q3 2026, and adjusted profit per share rose to $7.20 from $4.95. Much of the growth came from data centers, which buy turbines and large engines for power. Investors doubt that this spending stays high, and the stock fell by about half from its high on June 30, 2026.

It fell 9.3% on October 29, 2026, the day of the Q3 report, when the company guided only moderate sales growth for Q4 2026. Construction Industries expects similar Q4 sales with lower volume, because dealers plan to cut inventories by about $1.6 billion. Tariff costs of about $2.2 billion in 2026 also lower margins. For the gap to close, three things must be true.

The backlog of $78.1 billion at September 30, 2026 must turn into sales as new capacity starts, with steady orders in 2027. The Power & Energy margin must stay near the 24.4% of Q3 2026 as turbine and engine output grows. Caterpillar must keep its plan to return substantially all MP&E free cash flow to shareholders; this cash flow was $9.53 billion in the first nine months of 2026. The Q4 2026 report and the 2027 outlook, expected in late January 2027, are the next test.

If orders and margins hold, the gap can close over the next four to six quarters. The main reason it may not close is a fall in data center or mining orders, which can turn the cycle down.

1. Jan 28, 2027 · est.Pending

   Q4 2026 results and 2027 outlookA backlog at or above $78.1 billion and a 2027 outlook for higher sales with stable margins pass; a lower backlog or an outlook for lower sales fail.

Every passed and failed checkpoint across all picks

• October 31, 2026Caterpillar completed the purchase of John Fabick Tractor Company, a Caterpillar dealer for more than 100 years in Missouri, Illinois, Wisconsin and Michigan. It paid $1.24 billion in cash at closing and expects to pay about $165 million more later.
• October 29, 2026Caterpillar reported Q3 2026 results. Sales and revenues rose 17% to $20.7 billion, with higher volume of $2.2 billion and better prices of $663 million. Adjusted profit per share was $7.20, up from $4.95, and the adjusted operating margin was 20.6%. The backlog rose by $6.0 billion in the quarter to $78.1 billion. Caterpillar bought back $1.2 billion of shares. It expects moderate sales growth in Q4 2026 and still expects sales and revenues growth in the mid-to-high teens for 2026.
• October 15, 2026Caterpillar said that Denise Johnson, group president of Resource Industries, retires and that Derrick York, president of Solar Turbines, takes the role on November 1, 2026.

Last earnings

October 29, 2026 (8-K on sec.gov)

Next earnings

Expected about January 28, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 4, 2026 · cat-20260930
• 8-KEarnings release and Investor disclosureFiled October 29, 2026 · cat-20261029
• 8-KChange of directors or officers and Other company newsFiled October 15, 2026 · Read it on sec.gov
• 8-KNew material agreement and New debt or financial obligationFiled September 1, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 5, 2026 · cat-20260630
• 8-KEarnings release and Investor disclosureFiled August 4, 2026 · cat-20260804
• 8-KShareholder vote results and Investor disclosureFiled June 11, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 6, 2026 · cat-20260331
• 8-KEarnings release and Investor disclosureFiled April 30, 2026 · cat-20260430
• 8-KOther company newsFiled April 13, 2026 · Read it on sec.gov

Every filing on SEC EDGAR (CIK 18230)

• Demand for Caterpillar's machines and engines moves with the economy, construction, mining and energy spending. Power generation sales rose 30% in Q3 2026, mainly for data centers. If data center or mining investment slows, orders, sales and margins can fall quickly.
• Caterpillar expects tariff costs of about $2.2 billion in 2026, without the IEEPA recoveries. About half of these costs fall on Construction Industries. Higher tariffs or new trade limits can lower margins more.
• Manufacturing costs rise as Caterpillar adds capacity for turbines and engines. In Q3 2026, higher material costs, including tariffs, cost Resource Industries $208 million. Higher costs can offset price increases.
• Cat Financial had debt of $34.6 billion at September 30, 2026 to fund loans to customers and dealers. A weak economy can raise credit losses and funding costs.

Caterpillar has two parts with different funding. Machinery, Power & Energy (MP&E) funds itself mainly with cash flow and long-term notes. Read more

Dividend yield

1.0% (last 12 months, at today’s price of $598.88)

Paid per share

$6.28 in the last 12 months (4 payments)

Current annual rate

$6.52 ($1.63 × 4 a year)

Payout ratio

31% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

October 26, 2026, $1.63 per share

Dividends per share by year

Over the last 5 years, the dividend grew by about 8.0% a year. Over the last 10 years, the dividend grew by about 7.4% a year.

Source: company filings and market data, read on November 9, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.