Caterpillar Reports Strong Q4 Earnings Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy CAT?
Source: Benzinga
Caterpillar Inc. (NYSE: CAT) saw its stock rise by 5.00% as it crossed above the 5-day SMA, reflecting strong investor confidence.
The company's Q4 2025 earnings report revealed an 18% increase in sales to $19.1 billion, surpassing estimates and contributing to a positive outlook for 2026, with expected sales growth of 5% to 7%. Additionally, adjusted earnings per share were $5.16, exceeding the analyst estimate of $4.66, which highlights Caterpillar's operational efficiency. The strong performance is further supported by a record backlog of $51 billion, indicating robust demand in the market.
Caterpillar's impressive earnings and strong order backlog suggest a solid foundation for future growth, positioning the company well in the industrial sector as it continues to capitalize on market opportunities.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 620.54 USD with a low forecast of 395.00 USD and a high forecast of 730.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 678.310
Low
395.00
Averages
620.54
High
730.00
Current: 678.310
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its various segments, namely Construction Industries, Resource Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment. The Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations, as well as provide hydraulic systems, electronics and software for its machines and engines. The Energy & Transportation segment offers product and services that includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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