Caterpillar Q4 profit beats estimates on higher sales volume

Caterpillar

29/01/2026 11:38

Overview

Construction equipment maker's Q4 revenue rose 18%, beating analyst expectations

Adjusted EPS for Q4 beat consensus, reflecting strong end markets

Company deployed $7.9 bln for share repurchases and dividends in 2025

Outlook

Caterpillar enters 2026 with strong momentum and a record backlog

Result Drivers

SALES VOLUME INCREASE - Higher sales volumes, particularly in Power & Energy and Construction Industries, drove Q4 revenue growth

POWER & ENERGY GROWTH - Power & Energy segment sales rose 23% due to increased demand in oil and gas and power generation

HIGHER MANUFACTURING COSTS - Unfavorable manufacturing costs, largely from tariffs, impacted profit margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$19.10 bln
$17.86 bln (15 Analysts)
Q4 Adjusted EPS
Beat
$5.16
$4.68 (20 Analysts)
Q4 EPS
$5.12


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

Wall Street's median 12-month price target for Caterpillar Inc is $623.27, about 3.1% below its January 28 closing price of $643.28

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPn2NFclLa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)