Caterpillar Inc. (CAT) Q1 2026 Financial Results Summary

Caterpillar Inc. (NYSE: CAT) released its first-quarter 2026 financial results on April 30, 2026.

Summary of Financial Results

• Sales and Revenues:
  • First-quarter 2026 sales and revenues totaled $17.4 billion, an increase of 22% compared to $14.2 billion in Q1 2025.
  • This increase was primarily driven by higher sales volume (+16%) of $2.3 billion and favorable price realization of $426 million.
• Profit Metrics:
  • First-quarter 2026 profit per share was $5.47, up from $4.20 in Q1 2025, representing a 30% increase.
  • Adjusted profit per share rose to $5.54 from $4.25, indicating a 30% increase.
• Operating Profit Margin:
  • Operating profit margin was 17.7% in Q1 2026, slightly down from 18.1% in Q1 2025.
  • Adjusted operating profit margin for Q1 2026 was 18.0%, compared to 18.3% in the same period last year.
• Operating Profit:
  • Operating profit for Q1 2026 stood at $3.085 billion, an increase of 20% from $2.579 billion in Q1 2025.
  • This was influenced by an increase in sales volume by $940 million and favorable price realization contributing $426 million, but offset by unfavorable manufacturing costs of $710 million.
• Cash Flow and Capital Allocation:
  • Operating cash flow was $1.9 billion for Q1 2026.
  • Caterpillar deployed a total of $5.7 billion for share repurchase and dividends in the first quarter of 2026.
    • Specifically, $5.0 billion was used for repurchases of common stock.
    • $0.7 billion was allocated for dividends.

Segment Performance

• Power & Energy:
  • Total sales reached $7.031 billion, a 22% increase from $5.783 billion in Q1 2025.
  • Segment profit was $1.450 billion, up 13% from $1.288 billion for the prior year.
• Construction Industries:
  • Total sales were $7.161 billion, reflecting a significant 38% increase from $5.184 billion in Q1 2025.
  • Segment profit grew by 50%, reaching $1.535 billion compared to $1.024 billion last year.
• Resource Industries:
  • Segment sales totaled $3.797 billion, a modest 4% increase from $3.661 billion a year ago.
  • Segment profit decreased significantly to $378 million, showing a decline of 39% from the $623 million recorded last year.
• Financial Products:
  • Revenues increased 9% to $1.096 billion, compared to $1.007 billion in Q1 2025.
  • The segment profit rose 14% to $245 million versus $215 million the previous year.

Other Important Metrics

• Effective Tax Rate:
  • The effective tax rate for Q1 2026 was 20.9%, down from 22.3% in Q1 2025.
• Balance Sheet Highlights:
  • At the end of Q1 2026, Caterpillar recorded $4.1 billion in cash reserves.

Dividends and Stock Buybacks

Caterpillar declared a quarterly dividend of $0.7 billion during Q1 2026 and repurchased $5.0 billion in common stock as part of its capital allocation strategy.

Conclusion

Caterpillar's strong first-quarter results demonstrate significant growth in revenue, profit, and strategic capital allocation, reflecting the company's resilient position in a competitive market. The increase in sales across multiple segments and ongoing share repurchase and dividend distribution highlight Caterpillar’s commitment to enhancing shareholder value.

Condensed Consolidated Statement of Results of Operations

(Dollars in millions except per share data)

Note: All amounts are in millions.

Sales and revenues:	March 31,	2026	2025
Sales of Machinery, Power & Energy		$16,473	$13,378
Revenues of Financial Products		$942	$871
Total sales and revenues		$17,415	$14,249
Operating costs:
Cost of goods sold		$11,306	$8,965
Selling, general and administrative expenses		$1,816	$1,593
Research and development expenses		$537	$480
Interest expense of Financial Products		$345	$326
Other operating (income) expenses		$326	$306
Total operating costs		$14,330	$11,670
Operating profit		$3,085	$2,579
Interest expense excluding Financial Products		$134	$116
Other income (expense)		$260	$107
Consolidated profit before taxes		$3,211	$2,570
Provision (benefit) for income taxes		$670	$574
Profit of consolidated companies		$2,541	$1,996
Equity in profit (loss) of unconsolidated affiliated companies		$7	$7
Profit of consolidated and affiliated companies		$2,548	$2,003
Less: Profit (loss) attributable to noncontrolling interests		$-1	$—
Profit1		$2,549	$2,003
Profit per common share		$5.50	$4.22
Profit per common share — diluted2		$5.47	$4.20
Weighted-average common shares outstanding (millions)
– Basic		463.4	474.9
– Diluted2		465.8	477.1

Condensed Consolidated Statement of Financial Position

(Millions of dollars)

Note: All amounts are in millions.

Assets	March 31,	December 31,
Current assets:
Cash and cash equivalents	$4,072	$9,980
Receivables – trade and other	$11,447	$10,920
Receivables – finance	$10,443	$10,649
Prepaid expenses and other current assets	$2,980	$2,801
Inventories	$19,626	$18,135
Total current assets	$48,568	$52,485
Property, plant and equipment – net	$15,249	$15,140
Long-term receivables – trade and other	$2,490	$2,142
Long-term receivables – finance	$14,341	$14,272
Noncurrent deferred and refundable income taxes	$2,419	$2,882
Intangible assets	$419	$241
Goodwill	$5,865	$5,321
Other assets	$6,199	$6,102
Total assets	$95,550	$98,585
Liabilities
Current liabilities:
Short-term borrowings:	$4,729	$5,514
Accounts payable	$9,641	$8,968
Accrued expenses	$5,454	$5,587
Accrued wages, salaries and employee benefits	$1,434	$2,554
Customer advances	$4,382	$3,314
Dividends payable	$—	$703
Other current liabilities	$2,567	$2,798
Long-term debt due within one year:
-- Machinery, Power & Energy	$35	$35
-- Financial Products	$7,660	$7,085
Total current liabilities	$35,902	$36,558
Long-term debt due after one year:
-- Machinery, Power & Energy	$10,671	$10,678
-- Financial Products	$19,971	$20,018
Liability for postemployment benefits	$3,659	$3,838
Other liabilities	$6,687	$6,175
Total liabilities	$76,890	$77,267
Shareholders’ equity
Common stock	$5,852	$7,181
Treasury stock	$-53,307	$-49,539
Profit employed in the business	$67,997	$65,448
Accumulated other comprehensive income (loss)	$-1,881	$-1,772
Noncontrolling interests	$-1	$—
Total shareholders’ equity	$18,660	$21,318
Total liabilities and shareholders’ equity	$95,550	$98,585

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