CATERPILLAR INC (CAT) Earnings History

CATERPILLAR INC - Q1 2026 EarningsBeat

Filed at: Apr 30, 2026, 6:31 AM EDT|Read from source

EXECUTIVE SUMMARY

Caterpillar reported a strong start to 2026 with significant revenue growth driven by higher sales volume and favorable price realization. The company's disciplined execution and robust order activity in a dynamic environment contributed to a solid performance, supported by a substantial backlog.

POSITIVE HIGHLIGHTS

  • •

    Sales and revenues increased 22% to $17.4 billion, driven by higher sales volume and favorable price realization.

    positive
  • •

    Construction Industries segment sales increased by 38% to $7.161 billion.

    positive
  • •

    Power & Energy segment sales increased by 22% to $7.031 billion.

    positive
  • •

    The company deployed $5.7 billion of cash for share repurchases and dividends in the first quarter.

    positive

CONCERNS & RISKS

  • •

    Operating profit margin decreased to 17.7% from 18.1% in the prior year, and adjusted operating profit margin decreased to 18.0% from 18.3%.

    attention
  • •

    Resource Industries segment profit decreased by 39% to $378 million, primarily due to unfavorable manufacturing costs.

    negative
  • •

    Unfavorable manufacturing costs, largely reflecting higher tariff costs, impacted multiple segments.

    attention
  • •

    Inventories increased by $1.5 billion, contributing to higher sales volume but also indicating a potential build-up.

    attention
  • •

    Write-offs, net of recoveries, for Financial Products increased to $29 million from $20 million in the prior year.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$17.41B
+22.0%
Prior year: $14.25B
Net Income
Quarterly
$2.55B
+27.3%
Prior year: $2.00B
EPS (Diluted)
Quarterly
$5.47
+30.2%
Prior year: $4.20
Operating Income
Quarterly
$3.08B
+19.6%
Prior year: $2.58B
EPS (Basic)
Quarterly
$5.50
+30.3%
Prior year: $4.22

MARGIN ANALYSIS

Operating Margin
Current Quarter
17.7%
Prior Year
18.1%
YoY Change
-40 bps
Net Margin
Current Quarter
14.6%
Prior Year
14.1%
YoY Change
+58 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Power & Energy
0.0%
N/A
Construction Industries
0.0%
N/A
Resource Industries
0.0%
N/A
Financial Products
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Power & Energy
N/A———
Construction Industries
N/A———
Resource Industries
N/A———
Financial Products
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

EARNINGS CALL —

Call date
2026-04-30
Tone
cautious
Hedge density
N/A
Deflection rate
0.0%
View transcript Source Accession: 0000018230-26-000017

CALL GUIDANCE — Q1 2026 2026

MetricValuePeriodSpecificityvs Prior
sales_and_revenueslow double-digit growthFY2026directional—
sales_and_revenuesbetween six and nine percent2024 to 2030tight_rangeNew
salesmore than three timesby 2030pointNew
sales_and_revenueslow double digitsfull year of 2026directionalNew
tariff_costs$2.22-2.4 billionfull year 2026tight_rangeNew
restructuring_costs$300-350 million2026tight_rangeNew
MP&E_CAPX_spend4-5%through 2030tight_rangeNew
sales_and_revenueshigher2026directionalNew

CAPITAL ALLOCATION — Q1 2026 2026

  • liquiditycontinue

    $4.1 billion · enterprise cash balance

  • liquiditycontinue

    $1.3 billion · slightly longer-dated liquid market securities

  • buybackaccelerate

    $5 billion · first quarter · funded by after the dividend payment

  • buybackcontinue

    $4.5 billion · up to nine months

  • capex_policynew

    four and five percent · through 2030 · funded by MP&E sales

  • capex_policynew

    nearly three times · 2024 levels · funded by large reciprocating engine capacity

MACRO STANCE — Q1 2026 2026

  • tariffsheadwindnew

Q&A SIGNALS — Q1 2026 2026

Hedge rate
N/A
Concerns retained
1
Forward commits
2

SPECIAL ITEMS & ADJUSTMENTS

Q1 2026
Restructuring costs
Excluded from adjusted results.
+$41M
$0.07 per share
Q1 2025
Restructuring costs
Excluded from adjusted results.
+$32M
$0.05 per share
Q1 2026
Discrete tax benefit for stock-based compensation awards
Associated tax deductions in excess of cumulative U.S. GAAP compensation expense.
+$68M
Q1 2025
Discrete tax benefit for stock-based compensation awards
Associated tax deductions in excess of cumulative U.S. GAAP compensation expense.
+$17M
Total Impact
+$158M$0.12 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Our team delivered a strong start to the year, driven by resilient end markets and disciplined execution in a dynamic operating environment.

— CATERPILLAR INC, Q1 2026 2026 Earnings Call

Solid sales and revenues growth, combined with robust order activity, demonstrate the strength of our business and our focus on solving our customers’ toughest challenges.

— CATERPILLAR INC, Q1 2026 2026 Earnings Call

A record backlog provides a strong foundation for continued positive momentum.

— CATERPILLAR INC, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Allowance For Credit Losses Cat Financial Pct
0.9
Prior year: 0.9
%
Write Offs Net Recoveries Cat Financial Millions
29
+45.0% YoY
Prior year: 20
millions
Past Dues Cat Financial Pct
1.4
Prior year: 1.6
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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