Q1 EPS Estimates for Caterpillar Boosted by Zacks Research

Caterpillar Inc. (NYSE:CAT) – Equities research analysts at Zacks Research upped their Q1 2026 earnings estimates for Caterpillar in a report issued on Thursday, February 12th. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $4.38 for the quarter, up from their previous estimate of $3.97. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar’s FY2026 earnings at $21.36 EPS, FY2027 earnings at $24.04 EPS and FY2028 earnings at $28.62 EPS.

Caterpillar (NYSE:CAT) last announced its earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, topping the consensus estimate of $4.67 by $0.49. The business had revenue of $19.13 billion for the quarter, compared to the consensus estimate of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.Caterpillar’s revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the business earned $5.14 EPS.

CAT has been the subject of a number of other reports. Robert W. Baird set a $805.00 target price on Caterpillar in a research note on Friday, January 30th. Evercore raised their price objective on shares of Caterpillar from $476.00 to $630.00 and gave the company an “outperform” rating in a research report on Monday, November 17th. Bank of America boosted their target price on shares of Caterpillar from $735.00 to $825.00 and gave the stock a “buy” rating in a research note on Tuesday. Citigroup increased their price target on shares of Caterpillar from $710.00 to $760.00 and gave the company a “buy” rating in a research note on Monday, February 2nd. Finally, Argus boosted their price objective on shares of Caterpillar from $625.00 to $820.00 and gave the stock a “buy” rating in a research report on Wednesday. Sixteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $702.95.

Caterpillar Trading Up 2.1%

Shares of CAT opened at $774.37 on Friday. 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 market cap of $362.39 billion, a price-to-earnings ratio of 41.15, a PEG ratio of 1.79 and a beta of 1.58. The stock has a fifty day moving average price of $634.09 and a two-hundred day moving average price of $540.45. Caterpillar has a 52-week low of $267.30 and a 52-week high of $789.81.

Hedge Funds Weigh In On Caterpillar

A number of hedge funds and other institutional investors have recently made changes to their positions in CAT. Pacific Point Advisors LLC bought a new position in Caterpillar during the fourth quarter worth about $579,000. Brighton Jones LLC raised its position in shares of Caterpillar by 51.5% during the fourth 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 during the period. Harbour Investments Inc. lifted its holdings in shares of Caterpillar by 18.6% during the 2nd quarter. Harbour Investments Inc. now owns 7,642 shares of the industrial products company’s stock valued at $2,967,000 after purchasing an additional 1,200 shares in the last quarter. Deroy & Devereaux Private Investment Counsel Inc. acquired a new position in shares of Caterpillar in the 2nd quarter valued at approximately $233,000. Finally, Davidson Investment Advisors increased its stake in Caterpillar by 8.5% during the 2nd quarter. Davidson Investment Advisors now owns 1,299 shares of the industrial products company’s stock worth $504,000 after purchasing an additional 102 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Insider Buying and Selling

In other Caterpillar news, insider Denise C. Johnson sold 39,138 shares of the stock in a transaction dated 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 transaction, the insider owned 43,350 shares of the company’s stock, valued at approximately $29,524,818. This represents a 47.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Lange Bob De sold 22,656 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $720.11, for a total value of $16,314,812.16. Following the transaction, the insider owned 79,953 shares of the company’s stock, valued at $57,574,954.83. The trade was a 22.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 130,545 shares of company stock worth $88,294,733. Company insiders own 0.33% of the company’s stock.

Caterpillar Announces Dividend

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 paid 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 dividend yield of 0.8%. Caterpillar’s payout ratio is 32.09%.

Key Caterpillar News

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

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.