Zacks Research Predicts Reduced Earnings for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Equities researchers at Zacks Research dropped their Q2 2026 earnings per share (EPS) estimates for shares of Caterpillar in a research report issued to clients and investors on Thursday, February 12th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $5.12 per share 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.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $17.81 billion. During the same period in the prior year, the firm posted $5.14 EPS. Caterpillar’s quarterly revenue was up 17.9% on a year-over-year basis.

Several other analysts have also issued reports on the stock. Truist Financial increased their price target on shares of Caterpillar from $729.00 to $786.00 and gave the stock a “buy” rating in a research report on Monday, February 2nd. Evercore raised their target price on Caterpillar from $476.00 to $630.00 and gave the company an “outperform” rating in a report on Monday, November 17th. JPMorgan Chase & Co. lifted their price target on Caterpillar from $740.00 to $765.00 and gave the company an “overweight” rating in a research note on Friday, January 30th. HSBC upped their price objective on Caterpillar from $660.00 to $850.00 and gave the stock a “buy” rating in a research report on Thursday, February 5th. Finally, Bank of America lifted their target price on Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a research report on Tuesday, February 10th. Sixteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Caterpillar currently has an average rating of “Moderate Buy” and a consensus target price of $702.95.

Caterpillar Price Performance

CAT stock opened at $764.27 on Monday. The company’s 50-day moving average price is $641.06 and its two-hundred day moving average price is $546.70. The firm has a market cap of $357.66 billion, a P/E ratio of 40.61, a P/E/G ratio of 1.83 and a beta of 1.58. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. Caterpillar has a 12 month low of $267.30 and a 12 month 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 the stock. Kilter Group LLC acquired a new stake in shares of Caterpillar during the second quarter worth $27,000. Torren Management LLC acquired a new stake in Caterpillar during the 4th quarter worth about $27,000. Mid American Wealth Advisory Group Inc. bought a new position in shares of Caterpillar in the 2nd quarter worth about $28,000. Marquette Asset Management LLC lifted its stake in shares of Caterpillar by 1,060.0% in the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 53 shares during the period. Finally, Frazier Financial Advisors LLC boosted its position in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 33 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Caterpillar

In other news, insider Denise C. Johnson sold 39,138 shares of the firm’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $681.08, for a total transaction of $26,656,109.04. Following the completion of the transaction, the insider owned 43,350 shares of the company’s stock, valued at approximately $29,524,818. This trade represents a 47.45% decrease in their ownership of the stock. The transaction 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 business’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $720.11, for a total transaction of $16,314,812.16. Following the completion of the sale, the insider directly owned 79,953 shares in the company, valued at approximately $57,574,954.83. This represents a 22.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 138,436 shares of company stock valued at $94,425,251 in the last quarter. 0.33% of the stock is currently owned by corporate insiders.

Caterpillar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Tuesday, January 20th will be issued a $1.51 dividend. This represents a $6.04 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s dividend payout ratio (DPR) is 32.09%.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is being highlighted for providing power and infrastructure solutions to high?tech data centers, a market with strong long?term demand that could diversify revenue and support higher utilization of its power systems and electrification products. High-tech data centers get a powerful assist from a century-old company
• Neutral Sentiment: Zacks notes that Caterpillar is a trending stock and summarizes factors investors are watching; this reflects retail/institutional attention but doesn’t by itself change fundamentals. Here is What to Know Beyond Why Caterpillar Inc. (CAT) is a Trending Stock
• Neutral Sentiment: A personal?finance roundup that lists long?term dividend ideas may lift general investor interest in dividend payers, but it’s a broad theme piece and not a direct catalyst for CAT. 2 Dividend Stocks to Hold for the Next 10 Years
• Negative Sentiment: Insider Anthony D. Fassino sold 7,891 shares (~$6.13M at ~$776.90/share) and trimmed his position ~14.5%. Large insider sales can spook investors even if legally routine, adding selling pressure. SEC Filing – Insider Sale by Anthony D. Fassino
• Negative Sentiment: Zacks Research lowered Q2 EPS estimates for Caterpillar, signaling softer near?term earnings expectations that can pressure the stock until guidance or results reverse the trend. Q2 EPS Estimates for Caterpillar Lowered by Zacks Research

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.