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.
Sales and revenues increased 22% to $17.4 billion, driven by higher sales volume and favorable price realization.
positiveConstruction Industries segment sales increased by 38% to $7.161 billion.
positivePower & Energy segment sales increased by 22% to $7.031 billion.
positiveThe company deployed $5.7 billion of cash for share repurchases and dividends in the first quarter.
positiveOperating 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%.
attentionResource Industries segment profit decreased by 39% to $378 million, primarily due to unfavorable manufacturing costs.
negativeUnfavorable manufacturing costs, largely reflecting higher tariff costs, impacted multiple segments.
attentionInventories increased by $1.5 billion, contributing to higher sales volume but also indicating a potential build-up.
attentionWrite-offs, net of recoveries, for Financial Products increased to $29 million from $20 million in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % 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.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| sales_and_revenues | low double-digit growth | FY2026 | directional | — |
| sales_and_revenues | between six and nine percent | 2024 to 2030 | tight_range | New |
| sales | more than three times | by 2030 | point | New |
| sales_and_revenues | low double digits | full year of 2026 | directional | New |
| tariff_costs | $2.22-2.4 billion | full year 2026 | tight_range | New |
| restructuring_costs | $300-350 million | 2026 | tight_range | New |
| MP&E_CAPX_spend | 4-5% | through 2030 | tight_range | New |
| sales_and_revenues | higher | 2026 | directional | New |
$4.1 billion · enterprise cash balance
$1.3 billion · slightly longer-dated liquid market securities
$5 billion · first quarter · funded by after the dividend payment
$4.5 billion · up to nine months
four and five percent · through 2030 · funded by MP&E sales
nearly three times · 2024 levels · funded by large reciprocating engine capacity
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our team delivered a strong start to the year, driven by resilient end markets and disciplined execution in a dynamic operating environment.
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.
A record backlog provides a strong foundation for continued positive momentum.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.