Caterpillar (NYSE:CAT) Sets New 52-Week High After Better-Than-Expected Earnings

Shares of Caterpillar Inc. (NYSE:CAT) hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $656.75 and last traded at $657.79, with a volume of 83528 shares traded. The stock had previously closed at $643.28.

The industrial products company reported $5.16 earnings per share for the quarter, topping the consensus estimate of $4.67 by $0.49. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The firm had revenue of $19.13 billion for the quarter, compared to the consensus estimate of $17.81 billion. During the same period in the prior year, the business posted $5.14 earnings per share. The company’s revenue for the quarter was up 17.9% on a year-over-year basis.

Caterpillar Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th will be given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s dividend payout ratio (DPR) is 31.01%.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 earnings beat and record revenue — Caterpillar reported adjusted EPS of $5.16 and $19.13B in revenue, beating consensus and showing year-over-year top-line strength that supports valuation and buyback plans. Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: AI/data-center demand is boosting power equipment sales — multiple reports note that rapid data-center buildouts (AI workloads) are lifting demand for Caterpillar’s power-generation equipment, turning some orders into long-lived infrastructure rather than short-cycle construction revenue. This Construction Giant’s Stock Led the Dow Over the Past Year. It’s Gotten a Boost From AI
• Positive Sentiment: Strategic order for hyperscale AI power — Caterpillar joined a partnership to supply 2 GW of fast-response gas generator sets for the Monarch Compute Campus, a multi‑year, high-reliability power project that supports recurring, long-duration revenue. American Intelligence & Power Forms Strategic Alliance with Caterpillar and Boyd CAT to Deploy 2 Gigawatts of Dedicated Power for Hyperscale AI Infrastructure
• Positive Sentiment: Strong cash flow and capital return — FY2025 enterprise operating cash flow remained robust and the company deployed roughly $7.9B for buybacks and dividends, supporting EPS and shareholder returns. Caterpillar Reports Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Earnings call details and management commentary — The full Q4 2025 earnings call transcript provides color on geographic capex trends, margin drivers and service mix for investors doing a deeper read. Caterpillar Inc. (CAT) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst commentary and previews — Coverage ahead of and after the print emphasizes power & energy as the key catalyst while noting investment and margin questions remain. Caterpillar Earnings Are Coming. The Bar Is High, Thanks to AI.
• Negative Sentiment: Tariff headwind — Management warned of an estimated ~$2.6B impact from tariffs in 2026, which the company says will pressure margins and could offset some revenue gains unless mitigated. Caterpillar flags $2.6 billion tariff hit in 2026, power equipment demand lifts quarter
• Negative Sentiment: Tariffs already squeezing margins — Several outlets highlight that higher tariffs and related costs reduced profit margins in the quarter despite top-line strength. Caterpillar Says Higher Tariffs Impacted Profit Margins

Wall Street Analysts Forecast Growth

CAT has been the subject of a number of research analyst reports. Wells Fargo & Company lifted their price objective on shares of Caterpillar from $675.00 to $702.00 and gave the company an “overweight” rating in a report on Friday, January 23rd. Erste Group Bank raised shares of Caterpillar from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Raymond James Financial reiterated a “market perform” rating on shares of Caterpillar in a report on Wednesday, January 7th. Bank of America raised their price objective on Caterpillar from $650.00 to $708.00 and gave the stock a “buy” rating in a report on Wednesday, January 14th. Finally, Citigroup upped their target price on Caterpillar from $690.00 to $710.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Caterpillar presently has an average rating of “Moderate Buy” and an average price target of $640.20.

Insider Buying and Selling at Caterpillar

In related news, insider Anthony D. Fassino sold 8,184 shares of the firm’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $570.18, for a total transaction of $4,666,353.12. Following the sale, the insider owned 41,512 shares of the company’s stock, valued at $23,669,312.16. This trade represents a 16.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Jason Kaiser sold 10,707 shares of Caterpillar stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $563.60, for a total value of $6,034,465.20. Following the completion of the transaction, the insider owned 8,649 shares in the company, valued at $4,874,576.40. This trade represents a 55.32% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 54,729 shares of company stock worth $31,084,308. 0.33% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Caterpillar by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company’s stock valued at $26,572,681,000 after acquiring an additional 442,164 shares in the last quarter. Fisher Asset Management LLC increased its stake in Caterpillar by 2.3% during the 2nd quarter. Fisher Asset Management LLC now owns 9,418,321 shares of the industrial products company’s stock valued at $3,656,286,000 after purchasing an additional 208,196 shares in the last quarter. Valeo Financial Advisors LLC lifted its stake in shares of Caterpillar by 36,842.1% during the second quarter. Valeo Financial Advisors LLC now owns 7,299,751 shares of the industrial products company’s stock worth $2,833,836,000 after buying an additional 7,279,991 shares during the period. Norges Bank purchased a new stake in shares of Caterpillar during the second quarter valued at $2,165,899,000. Finally, Wellington Management Group LLP increased its position in shares of Caterpillar by 3,949.8% in the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock valued at $2,494,568,000 after acquiring an additional 5,098,964 shares during the period. 70.98% of the stock is owned by institutional investors and hedge funds.

Caterpillar Price Performance

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 has a 50 day moving average of $602.18 and a 200-day moving average of $517.31. The company has a market cap of $310.70 billion, a PE ratio of 34.08, a price-to-earnings-growth ratio of 2.48 and a beta of 1.57.

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.