Caterpillar (CAT) CAT quarter Financial Results Summary
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Caterpillar Inc. (CAT) Q2 2026: Record Sales and Profit Growth — Strongly Positive
Caterpillar Inc. (NYSE: CAT) reported impressive second-quarter results for 2026, with sales and revenues reaching $20.5 billion, an increase of $3.9 billion or 24% compared to $16.6 billion in the same quarter last year. This marks the first time in the company's history that it has surpassed $20 billion in sales and revenues in a single quarter.
Key Financial Metrics:
- Sales and Revenues: $20.5 billion in Q2 2026 vs. $16.6 billion in Q2 2025 (+24%)
- Profit Per Share: $7.77 in Q2 2026 vs. $4.62 in Q2 2025 (+68%)
- Adjusted Profit Per Share: $8.17 in Q2 2026 vs. $4.72 in Q2 2025 (+73%)
- Operating Profit Margin: 20.9% in Q2 2026 vs. 17.3% in Q2 2025
- Adjusted Operating Profit Margin: 21.9% in Q2 2026 vs. 17.6% in Q2 2025
- Enterprise Operating Cash Flow: $4.4 billion in Q2 2026
Analyst View:
This quarter is undoubtedly a strong positive for shareholders. The significant revenue growth of 24% and the remarkable increase in profit per share of 68% demonstrate Caterpillar's robust operational performance and effective cost management. The company’s ability to achieve record sales amidst a competitive landscape reflects its strong market position and operational efficiency. The increase in both operating profit margin and adjusted profit margin further underscores the company's ability to convert sales into profits effectively.
Caterpillar also deployed $2.2 billion in cash for share repurchases and dividends during the quarter, indicating a commitment to returning value to shareholders. This includes $1.5 billion for stock repurchases and $0.7 billion for dividends, which is a positive signal for investors looking for income and capital appreciation.
Segment Performance:
- Power & Energy: Sales increased to $8.238 billion (+17% YoY), with segment profit rising to $2.027 billion (+30% YoY).
- Construction Industries: Sales surged to $8.346 billion (+35% YoY), with segment profit reaching $1.947 billion (+57% YoY).
- Resource Industries: Sales grew to $4.648 billion (+20% YoY), with segment profit increasing to $693 million (+23% YoY).
- Financial Products: Revenues rose to $1.145 billion (+10% YoY), with segment profit at $328 million (+32% YoY).
Each of Caterpillar's primary segments contributed to the overall growth, with construction industries showing particularly strong performance, driven by higher sales volume and favorable price realization.
Forward Guidance and Catalysts:
Looking ahead, investors should watch for continued momentum in order rates and backlog growth across all segments. The company’s strong cash flow generation and commitment to shareholder returns through buybacks and dividends will likely remain focal points. Additionally, any updates on new product launches or expansions into emerging markets could serve as catalysts for further growth.
In summary, Caterpillar's Q2 2026 results reflect a robust operational performance and a strong commitment to shareholder value, positioning the company favorably for the upcoming quarters.
Condensed Consolidated Statement of Results of Operations
(Dollars in millions except per share data)
Note: All amounts in the following tables are in thousands.
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 30, 2026 | 2025 | June 30, 2026 | 2025 | |
| Sales and Revenues | ||||
| Sales of Machinery | $19,581 | $15,674 | $36,054 | $29,052 |
| Power & Energy Revenues | 962 | 895 | 1,904 | 1,766 |
| Financial Products Total | ||||
| Total Sales | $20,543 | $16,569 | $37,958 | $30,818 |
| and Revenues | ||||
| Operating costs: | ||||
| Cost of Goods Sold | 12,781 | 10,807 | 24,087 | 19,772 |
| Selling, General and Administrative Expenses | 2,018 | 1,694 | 3,834 | 3,287 |
| Research and Development Expenses | 616 | 551 | 1,153 | 1,031 |
| Interest Expense of Financial Products | 362 | 336 | 707 | 662 |
| Other Operating Income (Expense) | 471 | 321 | 797 | 627 |
| Total Operating Costs | 16,248 | 13,709 | 30,578 | 25,379 |
| Operating profit | 4,295 | 2,860 | 7,380 | 5,439 |
| Interest Expense Exclusive of Financial Products | 135 | 126 | 269 | 242 |
| Other Income | 398 | 84 | 658 | 191 |
| Consolidated Profit Before Taxes | 4,558 | 2,818 | 7,769 | 5,388 |
| Provision for Income Taxes | 1,055 | 646 | 1,725 | 1,220 |
| Profit of Consolidated | ||||
| Companies | 3,503 | 2,172 | 6,044 | 4,168 |
| Equity in Profit (Loss) of Unconsolidated Affiliates | 90 | 7 | 97 | 14 |
| Profit of Consolidated and Affiliates | 3,593 | 2,179 | 6,141 | 4,182 |
| Less: Profit (Loss) Attributable to Noncontrolling Interests | ||||
| Profit Attributable to Common Shareholders | $3,593 | $2,179 | $6,142 | $4,182 |
| Profit per Common Share | $7.80 | $4.64 | $13.29 | $8.85 |
| Profit per Common Share – Diluted | $7.77 | $4.62 | $13.23 | $8.82 |
| Weighted-average Common Shares Outstanding - Basic | 460.4 | 469.7 | 462.0 | 472.4 |
| - Weighted-average Common Shares Outstanding - Diluted | 462.5 | 471.5 | 464.3 | 474.5 |
Condensed Consolidated Statement of Financial Position
(Millions of dollars)
Note: All amounts in the following tables are in millions.
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Current Assets: | ||
| Cash and Cash Equivalents | $6,713 | $9,980 |
| Receivables – Trade and Other | 13,188 | 10,920 |
| Receivables – Finance | 10,844 | 10,649 |
| Prepaid Expenses and Other Current Assets | 3,078 | 2,801 |
| Inventories | 20,627 | 18,135 |
| Total Current Assets | 54,450 | 52,485 |
| Property, Plant and Equipment – Net | 15,628 | 15,140 |
| Long-term Receivables – Trade and Other | 3,086 | 2,142 |
| Long-term Receivables – Finance | 14,364 | 14,272 |
| Noncurrent Deferred and Refundable Income Taxes | 2,286 | 2,882 |
| Intangible Assets | 420 | 241 |
| Goodwill | 5,859 | 5,321 |
| Other Assets | 6,516 | 6,102 |