Zacks Research Forecasts Reduced Earnings for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Research analysts at Zacks Research decreased their Q2 2026 earnings per share estimates for Caterpillar in a report issued on Thursday, February 12th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $5.12 for the quarter, down from their previous forecast 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.

A number of other brokerages also recently commented on CAT. Citigroup increased their price objective on Caterpillar from $710.00 to $760.00 and gave the company a “buy” 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 report on Friday, January 30th. DA Davidson increased their price target on Caterpillar from $569.00 to $650.00 and gave the company a “neutral” rating in a research report on Monday, February 2nd. HSBC boosted their price objective on Caterpillar from $660.00 to $850.00 and gave the stock a “buy” rating in a report on Thursday, February 5th. Finally, Wall Street Zen upgraded shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Sixteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Caterpillar currently has a consensus rating of “Moderate Buy” and a consensus target price of $702.95.

Caterpillar Trading Up 2.1%

Shares of NYSE: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 stock has a market capitalization of $362.39 billion, a price-to-earnings ratio of 41.15, a PEG ratio of 1.83 and a beta of 1.58. Caterpillar has a 1-year low of $267.30 and a 1-year high of $789.81. The company has a 50 day moving average price of $634.09 and a 200 day moving average price of $541.97.

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. The company had revenue of $19.13 billion during the quarter, compared to the consensus estimate of $17.81 billion. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. Caterpillar’s revenue was up 17.9% on a year-over-year basis. During the same period in the prior year, the company earned $5.14 EPS.

Caterpillar Dividend Announcement

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

Insider Activity at Caterpillar

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $575.06, for a total value of $5,750,600.00. Following the transaction, the chief financial officer owned 45,460 shares in the company, valued at approximately $26,142,227.60. This represents a 18.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Lange Bob De sold 22,656 shares of Caterpillar stock in a transaction 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 sale, the insider directly owned 79,953 shares of the company’s stock, valued at $57,574,954.83. This trade represents a 22.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 130,545 shares of company stock valued at $88,294,733. 0.33% of the stock is owned by company insiders.

Institutional Investors Weigh In On Caterpillar

Hedge funds and other institutional investors have recently made changes to their positions in the company. Torren Management LLC bought a new stake in shares of Caterpillar during the 4th quarter worth $27,000. Frazier Financial Advisors LLC lifted its position in Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 33 shares during the last quarter. IFS Advisors LLC bought a new stake in Caterpillar during the fourth quarter valued at about $31,000. Rialto Wealth Management LLC grew its position in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock valued at $32,000 after purchasing an additional 18 shares during the last quarter. Finally, Marquette Asset Management LLC lifted its position in shares of Caterpillar by 1,060.0% during the 3rd 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 during the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Caterpillar

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.