Overview
- Caterpillar topped forecasts on Thursday with adjusted EPS of $5.54 and revenue of $17.42 billion, driven by heavy construction demand and firmer pricing.
- Shares jumped to a new high near $890 on Friday after the blowout report, a Morgan Stanley upgrade to Equal-weight, and Baird’s Street-high $1,165 target.
- Management lifted guidance to low double-digit sales growth for 2026, implying about $76 billion in revenue, and raised its long‑term growth goal to 6%–9% through 2030.
- Power & Energy sales rose 22% as data‑center projects bought more generation gear, with power generation revenue up 48%, and the total order backlog reached a record $63 billion.
- Tariff costs projected at $2.2 billion to $2.4 billion continue to pressure margins, while demand remains strongest in North America and softer in Asia‑Pacific.