Caterpillar (CAT) Stock Jumps 5% as Earnings Crush Expectations Again

TLDR

• Caterpillar reported Q1 EPS of $5.54, beating Wall Street’s estimate of $4.65
• Revenue rose 22% year over year to $17.42 billion, ahead of the $16.5 billion forecast
• Construction segment revenue jumped 38%; Power and Energy segment rose 22%
• Backlog hit a record $63 billion, up 79% year over year
• Caterpillar raised guidance, now expecting low double-digit sales growth in 2026

Caterpillar beat first-quarter earnings estimates on Thursday, sending the stock up nearly 5% in premarket trading to around $850.

The company posted adjusted EPS of $5.54 for the January-March period. That was well ahead of the Wall Street consensus of $4.65, according to FactSet.

Revenue for the quarter came in at $17.42 billion, up 22% from $14.2 billion a year ago. Analysts had expected $16.5 billion.

Caterpillar Inc., CAT

A year ago, Caterpillar earned $4.25 per share. The year-over-year improvement was driven by stronger volumes and better pricing across key segments.

The construction equipment segment was a standout, with revenue up 38%. Higher sales volume and improved pricing drove the gains, though the company noted that tariff-related manufacturing costs were a partial headwind.

Power and Energy Continues to Deliver

The Power and Energy segment, which supplies equipment to data centers, posted 22% revenue growth year over year. This segment has been a key growth driver as demand for AI infrastructure pushes clients to secure reliable power generation.

Profit margins in the segment were lower than expected due to tariff impacts, the company said.

Backlog ended the quarter at $63 billion — a record high and up 79% compared to the same period last year. That’s a number that tends to get investors’ attention.

Guidance Gets an Upgrade

Caterpillar also raised its full-year outlook. The company now expects low double-digit sales growth in 2026, up from prior guidance that pointed to the “top end” of its long-term 5%-to-7% annual growth target.

The new guidance translates to roughly $76 billion in 2026 sales, with operating profits estimated between $13 billion and $14 billion.

Analysts were previously modeling operating profit of $13.4 billion and sales of around $74 billion, so the updated targets are ahead of current Street estimates.

Coming into Thursday’s session, CAT was already up 41% year to date and 164% over the past 12 months. The stock’s run had raised the bar for earnings, and Thursday’s results cleared it.

The company said dealers also contributed to the strong quarter by building fresh inventory of construction equipment — a factor analysts had flagged ahead of the print.

Mining segment sales were also up year over year, adding another layer of breadth to the quarter.

Caterpillar aims to grow annual sales at 5% to 7% through 2030. Thursday’s raised guidance puts 2026 well above that baseline pace.

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