Caterpillar (CAT) reports record Q2 2026 revenue and a 30.7% earnings surprise as demand strengthens across segments.
Stock Earnings Results
August 4, 2026
Table of Contents
August 4, 2026
Caterpillar Inc. (NYSE: CAT) reported second-quarter 2026 results above expectations, supported by record quarterly sales and revenues, strong adjusted profit growth, higher operating margin, broad segment growth, stronger order activity, and continued capital returns.
Caterpillar is a global manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, diesel-electric locomotives, and related financing services through Cat Financial.
The company reported adjusted profit per share of $8.17, above estimates of $6.25, representing a 30.7% earnings surprise. Sales and revenues came in at $20.54 billion, above estimates of $19.31 billion, with revenue growth of 24.0%.
Sales and revenues increased 24% year-over-year to $20.54 billion.
This was the first time in Caterpillar’s history that quarterly sales and revenues topped $20 billion.
GAAP profit per share was $7.77, compared with $4.62 in the prior-year quarter.
Adjusted profit per share was $8.17, compared with $4.72 a year earlier.
Operating profit increased 50% to $4.30 billion.
Operating profit margin expanded to 20.9%, compared with 17.3% in the prior-year quarter.
Adjusted operating profit margin expanded to 21.9%, compared with 17.6% a year earlier.
Caterpillar said the revenue increase was primarily driven by higher sales volume of $3.1 billion and favorable price realization of $595 million.
Higher sales volume was mainly driven by stronger equipment sales to end users.
Sales were higher across all three primary segments.
Power & Energy sales increased 17%.
Construction Industries sales increased 35%.
Resource Industries sales increased 20%.
Financial Products revenue increased 7%.
Construction Industries sales increased 35% year-over-year to $8.35 billion.
The increase was mainly driven by higher sales volume and favorable price realization.
North America sales increased 50%.
Latin America sales increased 25%.
EAME sales increased 23%.
Asia Pacific sales increased 3%.
Construction Industries segment profit increased 57% to $1.95 billion.
Segment profit margin expanded to 23.3%, compared with 20.1% a year earlier.
Power & Energy sales increased 17% to $8.24 billion.
Power Generation sales increased 29%.
Oil and Gas sales increased 9%.
Industrial sales increased 9%.
The company said Power Generation sales increased in large reciprocating engines and turbines and turbine-related services, primarily in data center applications.
Power & Energy segment profit increased 30% to $2.03 billion.
Segment profit margin expanded to 24.6%, compared with 22.1% in the prior-year quarter.
Resource Industries sales increased 20% to $4.65 billion.
The increase was primarily driven by higher sales volume.
Mining, heavy construction, and quarry and aggregates sales increased 22%.
Rail sales increased 15%, helped by higher international locomotive deliveries and rail services.
Resource Industries segment profit increased 23% to $693 million.
Segment profit margin improved to 14.9%, compared with 14.5% a year earlier.
Financial Products revenue increased 10% to $1.15 billion.
Segment profit increased 32% to $328 million.
The increase was mainly driven by higher average earning assets, equity securities at Insurance Services, and higher margins at Insurance Services.
Those gains were partly offset by a higher provision for credit losses at Cat Financial.
Past dues at Cat Financial improved to 1.31%, compared with 1.62% at the end of the second quarter of 2025.
Enterprise operating cash flow was $4.4 billion.
Caterpillar ended the quarter with $6.7 billion of enterprise cash.
The company deployed $2.2 billion of cash for share repurchases and dividends during the quarter.
That included $1.5 billion for share repurchases and $0.7 billion for dividends.
Operating profit included $392 million of expected International Emergency Economic Power Act tariff recoveries.
The company also recorded restructuring costs related to the divestiture of certain non-U.S. entities and other restructuring costs.
Adjusted results excluded restructuring costs.
Caterpillar delivered a strong industrial earnings report.
Sales and revenues beat expectations, adjusted profit per share topped estimates by a wide margin, operating margin expanded, and all three primary segments posted higher sales. Construction Industries showed the fastest growth, while Power & Energy benefited from data center demand.
The key question is whether Caterpillar can keep converting strong order rates, backlog growth, pricing, and end-user equipment demand into higher margins while managing manufacturing costs, tariffs, and cyclical demand risk.
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