Zacks Research Reduces Earnings Estimates for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Analysts at Zacks Research dropped their Q1 2026 earnings per share (EPS) estimates for shares of Caterpillar in a research note issued to investors on Thursday, April 2nd. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $4.41 for the quarter, down from their prior forecast of $4.46. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar’s Q2 2027 earnings at $6.13 EPS.

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

Other equities research analysts have also issued research reports about the company. Bank of America increased their price target on Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a research report on Tuesday, February 10th. 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. Robert W. Baird set a $805.00 price target on Caterpillar in a research report on Friday, January 30th. Truist Financial increased their price target on Caterpillar from $729.00 to $786.00 and gave the company a “buy” rating in a research report on Monday, February 2nd. Finally, UBS Group reaffirmed a “neutral” rating and issued a $677.00 price target on shares of Caterpillar in a research report on Monday, February 2nd. Sixteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $737.55.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $723.38 on Tuesday. The business has a 50-day moving average of $718.91 and a 200 day moving average of $618.80. Caterpillar has a 12 month low of $268.27 and a 12 month high of $789.81. The stock has a market capitalization of $336.58 billion, a price-to-earnings ratio of 38.44, a price-to-earnings-growth ratio of 1.69 and a beta of 1.52. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94.

Insider Buying and Selling at Caterpillar

In other news, insider Rodney Michael Shurman sold 2,278 shares of the firm’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $759.61, for a total transaction of $1,730,391.58. Following the sale, the insider owned 1,443 shares of the company’s stock, valued at approximately $1,096,117.23. This trade represents a 61.22% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Lange Bob De sold 22,656 shares of the firm’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 sale, the insider directly owned 79,953 shares in the company, valued at $57,574,954.83. This trade represents a 22.08% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 125,950 shares of company stock worth $88,577,390. 0.33% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Torren Management LLC acquired a new position in Caterpillar during the fourth quarter worth approximately $27,000. Frazier Financial Advisors LLC increased its position in Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after buying an additional 33 shares during the period. IFS Advisors LLC acquired a new position in Caterpillar during the fourth quarter worth approximately $31,000. Cornerstone Financial Management LLC acquired a new position in Caterpillar during the fourth quarter worth approximately $32,000. Finally, Rialto Wealth Management LLC increased its position in Caterpillar by 47.4% during the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after buying an additional 18 shares during the period. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised its Q2 2027 EPS estimate for Caterpillar, which supports a stronger near‑term earnings outlook and helps justify current multiples. Zacks estimate raise
• Positive Sentiment: Zacks’ industry outlook and related coverage highlight that Caterpillar is benefiting from infrastructure and mining demand, plus a strong backlog — factors that underpin revenue visibility despite tariff pressures. Zacks Industry Outlook Highlights
• Positive Sentiment: Market commentators (IBD Leaderboard) are flagging Caterpillar as a stock to watch amid a potential market rally, increasing investor attention and momentum interest. Leaderboard trimmed, But…
• Positive Sentiment: Zacks’ sector commentary lists CAT among construction/mining equipment names worth watching despite a weak industry rank, signaling confidence in Caterpillar’s relative strength. 3 Construction & Mining Equipment Stocks
• Neutral Sentiment: Zacks trimmed its Q1 2026 EPS estimate slightly (to $4.41 from $4.46), a small revision that may temper near‑term expectations but does not materially change consensus full‑year estimates. Zacks estimate cut
• Negative Sentiment: Caterpillar and Bobcat have filed patent‑infringement suits against each other, introducing legal uncertainty, potential costs, and reputational risk that could pressure the stock if disputes escalate. Caterpillar, Bobcat sue each other
• Negative Sentiment: Analysis questioning whether it’s “too late” to buy after a ~161% one‑year surge highlights valuation concerns; stretched multiples increase downside sensitivity if growth slows. Is It Too Late To Consider Caterpillar?

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.