Q2 EPS Estimates for Caterpillar Lowered by Zacks Research

Caterpillar Inc. (NYSE:CAT) – Stock analysts at Zacks Research reduced their Q2 2026 EPS estimates for Caterpillar in a research note issued to investors on Thursday, February 12th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $5.12 per share for the quarter, down from their prior estimate of $5.27. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $5.58 EPS, Q4 2026 earnings at $6.29 EPS, Q1 2027 earnings at $5.02 EPS, Q2 2027 earnings at $6.01 EPS, Q3 2027 earnings at $5.96 EPS and Q4 2027 earnings at $7.05 EPS.

Several other equities analysts have also issued reports on CAT. Raymond James Financial restated a “market perform” rating on shares of Caterpillar in a research note on Wednesday, January 7th. DA Davidson boosted their price objective on Caterpillar from $569.00 to $650.00 and gave the company a “neutral” rating in a research report on Monday, February 2nd. Oppenheimer upped their target price on Caterpillar from $700.00 to $729.00 and gave the company an “outperform” rating in a research note on Friday, January 30th. UBS Group reiterated a “neutral” rating and set a $677.00 price target on shares of Caterpillar in a research note on Monday, February 2nd. Finally, Morgan Stanley boosted their price target on shares of Caterpillar from $400.00 to $425.00 and gave the company an “underweight” rating in a report on Tuesday, February 3rd. Sixteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $702.95.

Caterpillar Stock Up 2.1%

Shares of CAT opened at $774.37 on Monday. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.94 and a current ratio of 1.44. The company has a 50-day simple moving average of $634.09 and a 200-day simple moving average of $541.97. Caterpillar has a 52 week low of $267.30 and a 52 week high of $789.81. The firm has a market capitalization of $362.39 billion, a P/E ratio of 41.15, a P/E/G ratio of 1.83 and a beta of 1.58.

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

Caterpillar Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th will be paid a $1.51 dividend. This represents a $6.04 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s payout ratio is currently 32.09%.

Insider Activity

In other news, insider Lange Bob De sold 22,656 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $720.11, for a total transaction of $16,314,812.16. Following the completion of the sale, the insider owned 79,953 shares of the company’s stock, valued at approximately $57,574,954.83. This trade represents a 22.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Denise C. Johnson sold 39,138 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $681.08, for a total value of $26,656,109.04. Following the completion of the transaction, the insider directly owned 43,350 shares in the company, valued at $29,524,818. The trade was a 47.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 130,545 shares of company stock worth $88,294,733 in the last quarter. 0.33% of the stock is owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Several institutional investors have recently bought and sold shares of CAT. Torren Management LLC acquired a new stake in shares of Caterpillar in the fourth quarter valued at $27,000. Frazier Financial Advisors LLC increased its position in Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 33 shares in the last quarter. IFS Advisors LLC acquired a new stake in Caterpillar in the 4th quarter valued at about $31,000. Rialto Wealth Management LLC lifted its position in shares of Caterpillar by 47.4% during the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after purchasing an additional 18 shares in the last quarter. Finally, Marquette Asset Management LLC lifted its position in shares of Caterpillar by 1,060.0% during the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 53 shares in the last quarter. Institutional investors own 70.98% of the company’s stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI/data-center demand — Reports note that AI-driven capital expenditures (hyperscaler data-center construction and mining electrification) are boosting demand for large construction and mining equipment, a structural tailwind for Caterpillar’s sales and backlog. Caterpillar Rides AI Data Center Boom With Priced In Expectations
• Positive Sentiment: Analyst upgrades and price-target lift — Bank of America raised its price target (and an upgrade triggered a new 1‑year high mention), adding buy-side momentum and validating higher valuations for CAT. Bank of America Raises Caterpillar (NYSE:CAT) Price Target to $825.00
• Positive Sentiment: Upgraded earnings estimates — Zacks refreshed its model, raising Q1 and multi‑year EPS forecasts for CAT (FY2026–FY2028), which supports higher forward earnings multiples and gives investors conviction about near‑term profitability. The Zacks Analyst Alphabet, Caterpillar,T-Mobile US and Onfolio
• Positive Sentiment: Market leadership / headline performance — Coverage and headlines highlight CAT as a top contributor to the Dow’s gains, which can attract momentum flows and index-related buying. Why Caterpillar’s Stock Is Benefiting From the AI Boom
• Neutral Sentiment: Macro data mixed — Recent reports show stronger January jobs but downward revisions to 2025 job growth and lingering inflation above 2%. That creates uncertainty around Fed policy; durable capex demand can offset tighter monetary risk, but macro backdrop remains a cross‑current. Wall Street Roundup: Economic Data, Earnings Updates
• Neutral Sentiment: Broad market momentum — Commentary about the Dow passing 50,000 and an AI‑led bull market supports risk appetite broadly, which benefits cyclical industrials like CAT but may also price in further outperformance. Dow 50,000 Shows This AI-Led Bull Market Has Plenty Of Room To Run
• Negative Sentiment: Valuation/“priced-in” concerns and stock-specific risks — Some coverage warns that much of the AI benefit is already reflected in CAT’s share price and flags potential red flags (valuation, execution risk, or reliance on cyclical capex), which could amplify pullbacks if growth disappoints. Watch Out For These Red Flags In CAT Stock

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.