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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.

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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