Caterpillar FY2026 EPS Forecast Raised by Zacks Research

Caterpillar Inc. (NYSE:CAT) – Stock analysts at Zacks Research increased their FY2026 earnings per share estimates for Caterpillar in a research report issued on Tuesday, August 18th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $26.55 for the year, up from their previous forecast of $24.51. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $26.98 per share. Zacks Research also issued estimates for Caterpillar’s Q4 2026 earnings at $6.47 EPS and Q2 2027 earnings at $7.90 EPS.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.22 by $1.95. The firm had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business’s revenue for the quarter was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.72 EPS.

CAT has been the topic of several other research reports. Wells Fargo & Company upped their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a report on Tuesday, June 23rd. Evercore restated an “outperform” rating and set a $1,103.00 target price on shares of Caterpillar in a research report on Monday, May 11th. Wall Street Zen raised Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Royal Bank Of Canada upped their target price on shares of Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research report on Wednesday, August 5th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $1,002.00 target price on shares of Caterpillar in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $995.52.

Caterpillar Price Performance

Shares of Caterpillar stock opened at $814.68 on Thursday. The firm has a market cap of $374.49 billion, a P/E ratio of 35.06, a price-to-earnings-growth ratio of 1.48 and a beta of 1.60. The firm’s 50-day simple moving average is $912.19 and its 200-day simple moving average is $832.06. Caterpillar has a twelve month low of $410.52 and a twelve month high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were paid a $1.63 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date of this dividend was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. Caterpillar’s dividend payout ratio (DPR) is currently 28.06%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Axxcess Wealth Management LLC increased its holdings in Caterpillar by 2.8% during the 4th quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company’s stock worth $12,844,000 after purchasing an additional 604 shares in the last quarter. Juno Financial Group LLC bought a new stake in shares of Caterpillar in the fourth quarter valued at about $877,000. DSG Capital Advisors LLC acquired a new position in shares of Caterpillar during the first quarter worth about $1,226,000. Cornerstone Planning LLC acquired a new position in shares of Caterpillar during the fourth quarter worth about $4,517,000. Finally, RiverFront Investment Group LLC grew its holdings in shares of Caterpillar by 21.1% during the fourth quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company’s stock worth $5,107,000 after buying an additional 1,552 shares in the last quarter. Institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts raised earnings forecasts. Zacks Research increased its EPS projections across several periods, including FY2027 to $30.14 from $29.01 and FY2028 to $35.97 from $34.31. The firm maintained a “Strong-Buy” rating, signaling improved confidence in Caterpillar’s long-term earnings outlook. Zacks Research estimates
• Positive Sentiment: Growth momentum remains a supporting factor. A Zacks analysis said volume-driven growth is accelerating across Caterpillar’s three segments and prompted a sharp increase in its 2026 sales outlook. The company also announced a $3 million workforce investment in Arkansas, supporting local hiring and operations. Caterpillar volume gains analysis Caterpillar workforce initiative
• Neutral Sentiment: Recent gains may be prompting profit-taking. Commentary highlighted that CAT has risen sharply over the past year, increasing attention to valuation and how much future growth is already reflected in the stock. CAT stock performance analysis
• Negative Sentiment: Weak industrial data raised demand concerns. U.S. industrial production was weaker than expected in July, prompting investors to question whether Caterpillar’s record backlog can withstand a slowdown in industrial activity and equipment demand. Weaker U.S. industrial output analysis
• Negative Sentiment: Market-wide selling pressured CAT. Caterpillar and Goldman Sachs were cited as major drags on the Dow amid a pullback in AI-related and technology-linked trades. This appears to reflect broader risk reduction and sector rotation rather than a new company-specific operational setback. Dow market pressure

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.