Zacks Research Boosts Earnings Estimates for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Zacks Research boosted their Q4 2025 earnings estimates for shares of Caterpillar in a research note issued to investors on Thursday, January 8th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $4.32 per share for the quarter, up from their prior forecast of $4.31. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar’s Q2 2026 earnings at $5.27 EPS, Q3 2026 earnings at $6.06 EPS, FY2026 earnings at $21.01 EPS, Q1 2027 earnings at $5.30 EPS, Q2 2027 earnings at $6.60 EPS and Q3 2027 earnings at $6.65 EPS.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Monday, November 3rd. The industrial products company reported $4.95 earnings per share for the quarter, topping the consensus estimate of $4.52 by $0.43. The company had revenue of $17.64 billion for the quarter, compared to analysts’ expectations of $16.72 billion. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The firm’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same period in the previous year, the firm posted $5.17 earnings per share.

Other equities analysts also recently issued reports about the stock. Argus upped their price target on shares of Caterpillar from $460.00 to $625.00 and gave the company a “buy” rating in a report on Wednesday, November 19th. Barclays boosted their target price on Caterpillar from $485.00 to $555.00 and gave the company an “equal weight” rating in a research report on Thursday, October 30th. Raymond James Financial reiterated a “market perform” rating on shares of Caterpillar in a report on Wednesday. UBS Group upped their price objective on Caterpillar from $506.00 to $581.00 and gave the company a “neutral” rating in a research report on Tuesday, November 4th. Finally, Jefferies Financial Group lifted their target price on Caterpillar from $570.00 to $700.00 and gave the stock a “buy” rating in a research report on Wednesday, November 5th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $618.70.

Caterpillar Stock Performance

NYSE:CAT opened at $617.59 on Friday. Caterpillar has a fifty-two week low of $267.30 and a fifty-two week high of $627.50. The firm has a market capitalization of $289.02 billion, a PE ratio of 31.70, a PEG ratio of 2.36 and a beta of 1.57. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.86 and a current ratio of 1.38. The stock’s fifty day moving average is $579.31 and its 200 day moving average is $493.09.

Caterpillar Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Tuesday, January 20th will be given a dividend of $1.51 per share. The ex-dividend date of this dividend is Tuesday, January 20th. This represents a $6.04 dividend on an annualized basis and a yield of 1.0%. Caterpillar’s dividend payout ratio (DPR) is presently 31.01%.

Insider Buying and Selling

In related news, CAO William E. Schaupp sold 1,200 shares of the business’s stock in a transaction that occurred on Wednesday, November 5th. The shares were sold at an average price of $572.22, for a total transaction of $686,664.00. Following the completion of the transaction, the chief accounting officer owned 1,323 shares in the company, valued at $757,047.06. The trade was a 47.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Anthony D. Fassino sold 8,184 shares of the firm’s stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $570.18, for a total transaction of $4,666,353.12. Following the completion of the sale, the insider owned 41,512 shares of the company’s stock, valued at approximately $23,669,312.16. This trade represents a 16.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 54,729 shares of company stock valued at $31,084,308 over the last three months. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Pacific Point Advisors LLC purchased a new stake in shares of Caterpillar during the fourth quarter worth about $579,000. Brighton Jones LLC boosted its stake in Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock worth $2,688,000 after purchasing an additional 2,519 shares in the last quarter. Caxton Associates LLP acquired a new stake in Caterpillar in the 1st quarter worth approximately $483,000. MBB Public Markets I LLC purchased a new stake in Caterpillar during the 1st quarter worth approximately $309,000. Finally, Woodline Partners LP increased its stake in Caterpillar by 39.3% during the 1st quarter. Woodline Partners LP now owns 40,378 shares of the industrial products company’s stock valued at $13,317,000 after purchasing an additional 11,384 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar rolled out a suite of AI and autonomy initiatives at CES — including the Cat AI assistant, previews of autonomous machine lines, and expanded autonomy beyond mining — positioning CAT to capture software and services revenue as well as higher-margin aftermarket sales. Read More.
• Positive Sentiment: CAT announced a partnership with Nvidia to integrate voice and other AI capabilities into machines and operations, accelerating technical differentiation and faster time-to-market for autonomous features. Read More.
• Positive Sentiment: Caterpillar committed $25M toward a global innovation prize and said it’s investing in upskilling the workforce that will build its AI/autonomy systems — a sign management is funding long-term revenue mix shift to software/services. Read More.
• Positive Sentiment: Analysts at Zacks raised multiple near‑ and mid‑term EPS forecasts (Q4 2025–FY2026 and into 2027), lifting FY2026 estimates substantially — a direct driver of investor bullishness on CAT’s earnings trajectory. Read More.
• Neutral Sentiment: Coverage pieces highlight CAT’s long-term income profile (dividend aristocrat status) and the company’s strategic positioning in AI/autonomy, but these are general narratives rather than immediate catalysts. Read More.
• Neutral Sentiment: Volume notes: markets flagged unusually large options activity in CAT, which can amplify intraday moves but is not itself an earnings or strategy signal. Read More.
• Negative Sentiment: Political/legal risk: commentary warns that a potential rollback of tariffs that helped shield domestic equipment makers could remove a tailwind for CAT’s U.S. demand — a macro risk investors are watching. Read More.

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.