CAT earnings analysis
What we found in CAT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Caterpillar reported a strong first quarter of 2026 with revenues of $17.415 billion, marking a 22% increase from the previous year, along with an EPS of $5.47, up from $4.20. The company experienced notable sales growth across all segments, particularly in Construction Industries, which saw a 38% rise. Despite strong performance, operating margins slightly compressed due to increased manufacturing costs and SG&A expenses.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Robust Revenue Growth
- Caterpillar's revenue increased by $3.166 billion, or 22%, to $17.415 billion compared to $14.249 billion in Q1 2025.
- Earnings Per Share Beat
- Diluted EPS for the quarter came in at $5.47, an increase of 30% from $4.20 in Q1 2025.
- Segment Performance
- The Construction Industries segment grew by 38%, with revenue rising to $7.161 billion, driven by higher sales volume.
- Strong Cash Flow
- Operating cash flow for Q1 2026 was $1.870 billion, up $581 million year-over-year.
- Shareholder Returns
- The company repurchased $5.028 billion in stock during the first quarter as part of its capital allocation strategy.
- High Backlog
- Caterpillar reported a backlog of approximately $62.7 billion, indicating strong future demand.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin Compression
- Operating profit margin fell to 17.7% from 18.1% a year ago, affected by increased tariff costs and higher SG&A expenses.
- Global Economic Uncertainty
- Management highlighted potential headwinds from geopolitical risks and inflationary pressures that could impact future performance.
- Increased Tariff Costs
- The company expects tariff costs of around $700 million in Q2 2026, impacting profitability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $5.54
- Operating margin
- 17.7%
- Segment
- Power & Energy: $7.031B
- Segment
- Construction Industries: $7.161B
- Segment
- Resource Industries: $3.797B
What they said about what is next.
Management anticipates low double-digit revenue growth for full-year 2026 compared to 2025.
The filing reads better than the one before it.
What came before.
- 10-K · February 13, 2026
- Caterpillar reported 2025 sales of $67.589 billion and delivered a Q4 beat with revenue of $19.13 billion (actual $19.133B vs est. $17.835B) and EPS of $5.16 (actual vs est. $4.70). The company introduced a refreshed…
- 10-Q · August 6, 2025
- Caterpillar reported Q2 (three months ended June 30, 2025) revenue of $16,569 million, slightly below prior-year $16,689 million, while diluted EPS fell to $4.62 from $5.48 as gross and operating margins compressed.…
- 10-Q · May 7, 2025
- Caterpillar reported quarter revenue of $14,249 million, down from $15,799 million a year earlier, with diluted EPS of $4.20 versus $5.75 in Q1 2024. ME&T sales declined while Financial Products revenue grew slightly;…
- 10-K · February 14, 2025
- Caterpillar Inc.'s 2024 10-K report highlights a robust revenue of $64.809 billion, supported by strategic focus on operational excellence, expanded offerings, and sustainability initiatives. Growth is driven…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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