TLDR

  • First-quarter earnings per share reached $5.54, surpassing analyst projections of $4.65
  • Quarterly revenue climbed 22% year over year to reach $17.42 billion versus $16.5 billion consensus
  • Construction division revenue surged 38%; Power and Energy division increased 22%
  • Company backlog reached unprecedented $63 billion, representing 79% annual growth
  • Management upgraded outlook, projecting low double-digit sales expansion for 2026

Caterpillar delivered first-quarter results that exceeded analyst expectations on Thursday, propelling shares higher by nearly 5% during premarket hours to approximately $850.

The heavy equipment manufacturer reported adjusted earnings of $5.54 per share for the three months ending in March. This figure significantly outpaced the analyst consensus estimate of $4.65, based on FactSet data.

Quarterly revenue totaled $17.42 billion, representing a 22% increase from the prior year’s $14.2 billion. The Street had projected $16.5 billion for the period.


CAT Stock Card
Caterpillar Inc., CAT

During the same quarter last year, Caterpillar delivered earnings of $4.25 per share. The substantial year-over-year growth stemmed from increased sales volumes and enhanced pricing power throughout major business segments.

CEO Joe Creed characterized the period as delivering impressive results. “Solid sales and growth, combined with robust order activity, demonstrate the strength of our business,” he stated in the company’s press release.

The construction equipment division emerged as a particularly bright spot, recording 38% revenue expansion. Enhanced sales volumes and strategic pricing improvements fueled these gains, although management acknowledged that tariff-related production expenses created some offsetting pressure.

Power and Energy Continues to Deliver

The Power and Energy division, serving customers including data centers, generated 22% revenue growth compared to the year-ago period. This business unit has emerged as a critical growth engine as surging demand for AI infrastructure compels customers to invest in dependable power generation solutions.

Margin performance within this segment fell short of expectations due to tariff-related challenges, according to company officials.

The order backlog concluded the quarter at $63 billion — an all-time company record and 79% higher than the comparable period twelve months earlier. This metric typically attracts considerable investor focus.

Guidance Gets an Upgrade

Caterpillar simultaneously elevated its full-year projections. Management now anticipates low double-digit sales growth throughout 2026, an improvement from previous guidance that targeted the upper boundary of its long-term 5%-to-7% annual expansion goal.

The revised outlook implies approximately $76 billion in 2026 revenue, with operating profit forecasted between $13 billion and $14 billion.

Analysts had previously modeled operating profit at $13.4 billion alongside sales near $74 billion, meaning the updated targets exceed current Wall Street projections.

Heading into Thursday’s trading session, CAT shares had already appreciated 41% year to date and 164% over the trailing twelve months. The stock’s strong momentum had elevated performance expectations, which Thursday’s results successfully surpassed.

Management noted that dealer network participants contributed meaningfully to quarterly strength by replenishing construction equipment inventories — a dynamic analysts had identified as a potential catalyst before the release.

Mining division sales also posted year-over-year gains, broadening the positive momentum across business lines.

Caterpillar maintains its long-term objective of achieving 5% to 7% annual sales growth through 2030. Thursday’s enhanced guidance positions 2026 considerably above that target range.