EarningsQ3 2026 Earnings Report
MX:CAT Q3 2026 EPS Results
Actual EPS$135.26
Consensus EPS$132.54
Beat/MissBeat by +$2.72
One Year Ago EPS$92.99
MX:CAT Q3 2026 Revenue Results
Actual Revenue$388.55B
Expected Revenue$389.95B
Beat/MissMissed by -$1.40B
YoY Revenue Growth+17.26%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeBefore Open
Conference CallThursday, October 29, 2026
MX:CAT Upcoming Earnings
Caterpillar's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:CAT Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Caterpillar reported record quarterly sales, substantial earnings growth, a record backlog, broad-based order strength and healthy end markets across all three primary segments. The main challenges were capacity constraints, operational ramping issues, tariffs, freight and manufacturing cost pressures, regional softness, and a fourth-quarter dealer inventory headwind. Management nevertheless maintained its full-year sales growth and cash flow outlook and expressed confidence in a strong finish to the year.Company Guidance
Record Quarterly Sales and Strong Earnings Growth
Third-quarter sales and revenues reached a record $20.7 billion, up 17% versus the prior year. Adjusted profit per share was $7.20, an increase of 45%, while adjusted operating profit increased 38% to $4.3 billion.
Record Backlog and Broad-Based Order Momentum
Strong order rates across all three primary segments drove backlog to a record $78 billion, up approximately $38 billion, or 96%, from the third quarter last year. This marked the fourth consecutive quarter of sequential backlog growth in all three primary segments. Approximately 58% of backlog is expected to be sold within the next 12 months, compared with 59% last quarter.
Improved Operating Margin
Third-quarter adjusted operating profit margin was 20.6%, up 310 basis points from the prior year. The improvement was driven by higher sales volume and favorable price realization.
Strong Free Cash Flow and Shareholder Returns
MP&E free cash flow was $3.8 billion, an increase of roughly $600 million versus the prior year, mainly driven by stronger profit. Caterpillar deployed $2 billion to shareholders, including $1.2 billion in share repurchases and nearly $750 million in quarterly dividends.
Power and Energy Segment Growth
Power and Energy sales increased 18% to $8.8 billion, while segment profit increased 31% to $2.1 billion. The segment margin was 24.4%, up 250 basis points versus the prior year. Sales to users grew 36%, with power generation sales up 75% due to continued strong demand for turbines and large reciprocating engines used in data center applications.
Strong Data Center, Prime Power and Oil and Gas Demand
Demand remained strong for power generation, driven by data center build-out related to cloud computing and generative AI. Prime power demand continued to trend higher, and large reciprocating engine and turbine orders were being taken as far out as 2029 and 2030. Oil and gas sales to users increased 5%, driven by turbines and turbine-related services, while gas compression demand and reciprocating engine aftermarket parts continued to show momentum.
Construction Industries Delivered Seventh Consecutive Growth Quarter
Construction Industries sales increased 18% to $8.0 billion, and segment profit increased 33% to $1.8 billion. The segment margin was 22.9%, up 250 basis points. Total sales to users increased 20%, marking the seventh consecutive quarter of year-over-year growth, with North America sales to users up 27%.
Rental and Major Projects Momentum
North American dealer rental revenue continued to grow, driving increased investment in equipment fleets. Rental fleet loading was exceptionally strong in the third quarter, contributing significantly to sales to users growth. The Cat dealer-owned Major Projects rental joint venture also saw strong customer interest and began supporting large-scale infrastructure, energy, manufacturing and data center projects across North America.
Healthy Construction End Markets
Residential and nonresidential construction activity supported Construction Industries growth. North American construction spending remained healthy, while nonresidential investment continued to be supported by the IIJA, critical infrastructure programs and data centers. Europe and Africa supported EAME growth, and Latin America continued to grow.
Resource Industries Sales and Order Improvement
Resource Industries sales increased 15% to $4.6 billion, primarily due to higher sales volume, while segment profit increased 14% to $622 million. The company reported three strong order quarters in a row, with momentum in mining, heavy construction, copper, gold, Canadian oil sands and services.
Positive Resource Industries Outlook
Customer product utilization was high, fleet age remained elevated, and most key commodities were above investment thresholds. Full-year Resource Industries sales to users growth is expected to be driven by rising demand for copper and gold, increasing Canadian oil sands activity, and positive heavy construction and quarry and aggregates dynamics.
Financial Products Portfolio Remained Healthy
Financial Products revenue increased 9% to $1.2 billion, and segment profit increased 10% to $264 million. Past dues were 1.31%, down 16 basis points from the prior year and the lowest level recorded since 1998. Retail new business volume grew 6%, used equipment inventory remained low, and conversion rates remained above historical averages.
Capacity Expansion and Production Initiatives
Caterpillar continued increasing production of large reciprocating engines and turbines while expanding capacity. The company plans to use part of its Winston-Salem facility as a second assembly and test location for 3600 series large reciprocating engines, supporting oil and gas customers and previously announced plans to increase large reciprocating engine capacity to nearly three times the 2024 level by 2030.
Investment in Compact Construction Equipment
Caterpillar announced a $1 billion investment to expand manufacturing capacity in Sanford, North Carolina, supporting Cat Compact and the growing compact construction equipment industry. The facility is expected to incorporate advanced manufacturing technologies, automation, digital production systems and integrated logistics capabilities.
Expansion of Autonomous Hauling Technology
Caterpillar is working with Luck Stone to expand autonomous hauling technology across two additional Virginia operations. The Bull Run quarry pilot has hauled more than 3.5 million tons since going live in November 2024, and the deployments represent the first use of Caterpillar autonomous technology on a Cat 775 truck. The company remains focused on tripling the number of Cat autonomous trucks by 2030 compared with 2024.
Maintained Full-Year Growth and Cash Flow Outlook
Caterpillar continued to expect full-year 2026 sales and revenues growth in the mid- to high teens. MP&E free cash flow is expected to be in the top half of the annual target range of $6 billion to $15 billion, and full-year CapEx is now anticipated to be about $3.3 billion, slightly below the prior expectation of $3.5 billion.
Strong Balance Sheet and Dividend Record
The company reported an enterprise cash balance of $7.9 billion and $1.6 billion in slightly longer-dated liquid marketable securities. Caterpillar announced its sixth consecutive year of high single-digit quarterly dividend increases, and 2026 will mark 33 consecutive years of paying higher annual dividends.
10-Megawatt MaK Engine Restart on Track
Caterpillar expects to ship its first restarted 10-megawatt MaK engine units in the fourth quarter and continue ramping through next year for power generation applications. The program was stated to be on track.
MX:CAT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed