Key Highlights
- First-quarter earnings per share reached $5.54, surpassing analyst projections of $4.65
- Quarterly revenue climbed 22% annually to $17.42 billion, exceeding the $16.5 billion consensus
- Construction division revenue surged 38%; Power and Energy division increased 22%
- Order backlog reached an all-time high of $63 billion, representing a 79% yearly increase
- Company upgraded its outlook, projecting low double-digit revenue growth for 2026
Shares of Caterpillar climbed nearly 5% during premarket hours Thursday, trading around $850, after the industrial giant delivered first-quarter results that handily exceeded Wall Street’s projections.
The heavy equipment manufacturer reported adjusted earnings of $5.54 per share for the three months ending in March. This figure substantially outpaced the analyst consensus estimate of $4.65 compiled by FactSet.
Quarterly sales totaled $17.42 billion, marking a 22% increase from the $14.2 billion recorded in the year-ago period. The Street had been anticipating revenue of $16.5 billion.
Compared to the prior year’s $4.25 per share, the earnings growth reflected increased sales volumes and enhanced pricing power throughout the company’s core business units.
Chief Executive Joe Creed characterized the results as impressive. “Solid sales and growth, combined with robust order activity, demonstrate the strength of our business,” he stated in the company’s earnings announcement.
The construction equipment division emerged as a particularly bright spot, generating 38% higher revenue. The gains stemmed from elevated sales activity and favorable pricing dynamics, although the firm acknowledged that tariff-related production expenses created some offsetting pressure.
Strong Momentum in Power and Energy Division
Caterpillar’s Power and Energy business unit, which provides equipment to facilities including data centers, delivered 22% year-over-year revenue expansion. This division has become increasingly important as artificial intelligence infrastructure buildout drives customers to invest in dependable power generation capabilities.
The segment experienced some margin compression due to tariff-related costs, according to company officials.
The order backlog concluded the quarter at $63 billion — an unprecedented level and 79% above the comparable quarter last year. This metric typically captures significant investor interest.
Management Elevates Full-Year Projections
Caterpillar also enhanced its annual forecast. Management now anticipates low double-digit revenue expansion in 2026, an upgrade from previous guidance that indicated performance at the “top end” of its long-term 5%-to-7% yearly growth framework.
The revised outlook suggests approximately $76 billion in 2026 revenue, with operating earnings projected between $13 billion and $14 billion.
Wall Street analysts had previously been modeling operating earnings of $13.4 billion alongside sales near $74 billion, meaning the refreshed targets exceed current market expectations.
Prior to Thursday’s trading session, CAT stock had already appreciated 41% year-to-date and 164% over the trailing twelve months. The stock’s remarkable performance had elevated expectations for the quarterly report, which the company successfully exceeded.
Management noted that dealer networks also played a role in the strong performance by replenishing construction equipment inventory levels — a dynamic that analysts had identified as a potential positive factor before the earnings release.
The mining equipment segment also posted year-over-year sales gains, contributing additional diversity to the quarterly performance.
Caterpillar maintains a strategic objective of achieving 5% to 7% annual revenue growth through 2030. Thursday’s enhanced 2026 guidance positions that year’s expected performance well above the company’s baseline growth trajectory.
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