Q3 EPS Estimates for Caterpillar Boosted by Zacks Research

Caterpillar Inc. (NYSE:CAT) – Investment analysts at Zacks Research upped their Q3 2026 earnings per share estimates for shares of Caterpillar in a research report issued on Wednesday, July 15th. Zacks Research analyst Team now expects 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 “Hold” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $24.87 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.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same quarter in the previous year, the firm posted $4.25 EPS. The business’s revenue for the quarter was up 22.2% compared to the same quarter last year.

A number of other analysts have also recently weighed in on CAT. Bank of America increased their price objective on shares of Caterpillar from $930.00 to $989.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Sanford C. Bernstein upped their target price on shares of Caterpillar from $769.00 to $879.00 and gave the stock a “market perform” rating in a research report on Friday, May 1st. JPMorgan Chase & Co. raised their price target on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. Wall Street Zen raised Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Finally, Barclays increased their price objective on Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. Fifteen equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, Caterpillar currently has a consensus rating of “Moderate Buy” and a consensus target price of $980.57.

Caterpillar Stock Performance

CAT stock opened at $881.26 on Thursday. Caterpillar has a 1 year low of $405.46 and a 1 year high of $1,073.46. The stock has a market capitalization of $405.90 billion, a price-to-earnings ratio of 43.87, a PEG ratio of 1.72 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’s fifty day moving average is $931.29 and its two-hundred day moving average is $793.45.

Institutional Trading of Caterpillar

Several institutional investors have recently modified their holdings of the company. Lam Group Inc. acquired a new stake in Caterpillar in the 1st quarter valued at about $26,000. Torren Management LLC acquired a new position in shares of Caterpillar in the 4th quarter worth approximately $27,000. Frazier Financial Advisors LLC raised its holdings in shares of Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 33 shares in the last quarter. Decker Retirement Planning Inc. lifted its stake in Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 22 shares during the last quarter. Finally, IFS Advisors LLC acquired a new stake in Caterpillar during the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Insider Activity at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of the business’s stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the sale, the insider owned 86,029 shares of the company’s stock, valued at $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Denise C. Johnson sold 12,605 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the sale, the insider owned 49,825 shares of the company’s stock, valued at $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 95,773 shares of company stock worth $87,642,635 in the last three months. 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. Shareholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. Caterpillar’s payout ratio is presently 30.06%.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Multiple analyst updates turned incrementally more optimistic on Caterpillar’s earnings outlook, with Erste Group Bank and Zacks Research lifting FY2026, FY2027, FY2028 and several quarterly EPS estimates. Higher profit expectations can support the stock by reinforcing the view that CAT’s long-term demand and pricing power remain solid.
• Positive Sentiment: Several commentary pieces highlighted Caterpillar as a leading industrial and equipment name versus peers like Volvo, citing stronger earnings momentum, rising estimates, and long-term growth tied to infrastructure, electrification, automation, and AI data-center buildout demand.
• Neutral Sentiment: Pre-earnings coverage noted Wall Street is expecting Caterpillar’s upcoming Q2 2026 report to show another double-digit profit increase, which keeps investor attention focused on whether results can justify the stock’s premium valuation.
• Neutral Sentiment: Several articles framed Caterpillar as a high-quality company with a strong brand and global dealer network, but also warned that the valuation looks rich. That limits near-term upside unless earnings growth continues to outpace expectations.
• Negative Sentiment: Caterpillar was also mentioned in broader market weakness and “AI selloff” coverage, and Zacks Research downgraded the stock from strong-buy to hold. That suggests some investors are becoming more cautious after the recent run-up.

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.