Key Highlights

  • Adjusted profit per share of USD 7.20 beat the consensus estimate of USD 7.06, with GAAP at USD 7.13.
  • Revenue of USD 20.68 billion rose 17% year over year, slightly below the consensus estimate of USD 20.76 billion.
  • Order Backlog reached a record USD 78 billion, up about USD 38 billion or 96% from a year earlier.
  • Adjusted Operating Margin rose 310 basis points to 20.6%, aided by volume, pricing and USD 128 million of Tariff recoveries.

Caterpillar Inc. (NYSE:CAT) reported third quarter 2026 adjusted profit per share of USD 7.20, ahead of the consensus estimate of USD 7.06, while GAAP profit per share was USD 7.13 versus USD 4.88 a year earlier. Sales and revenues of USD 20.68 billion rose 17% from USD 17.64 billion but came in slightly below the consensus estimate of USD 20.76 billion. Operating profit grew 38% to USD 4.21 billion, with higher sales Volume of USD 2.2 billion and price realization of USD 663 million driving the gain.

Power Generation Demand Carries Segment Profit

Power and Energy sales rose 18% to USD 8.78 billion and segment profit climbed 31% to USD 2.14 billion, a margin of 24.4%. Power generation external sales reached USD 3.42 billion, up 30%, and sales to users in the application grew 75% on turbines and large reciprocating engines used in Data Center projects. Construction Industries sales rose 18% to USD 7.98 billion at a 22.9% margin, with total sales to users up 20%. Resource Industries sales grew 15% to USD 4.62 billion, and segment profit rose 14% to USD 622 million at a 13.5% margin. Chairman and Chief Executive Officer Joe Creed said the results reflect the durability of end markets, strong order rates and a record backlog.

Tariff Costs and Capacity Spending Frame the Guidance

The Chief Financial Officer said third quarter tariff costs excluding recoveries were about USD 600 million, roughly flat year over year, and that full year tariff costs stay near USD 2.2 billion. Excluding IEEPA recoveries, which total about USD 520 million year to date, full year adjusted operating margin is projected near the bottom of the target range. Guidance for full year sales and Revenue growth in the mid to high teens was maintained, and Capital spending is now pegged at about USD 3.3 billion, down from a prior USD 3.5 billion. Restructuring costs are now about USD 300 million. Mr. Creed noted that bringing capacity online remains the top pacing Factor for Power and Energy growth, with large reciprocating engine orders being taken as far out as 2029 and turbine orders into 2030.

Cash Returns and Balance Sheet Figures

Machinery, Power and Energy free Cash Flow was USD 3.8 billion, up roughly USD 600 million from a year earlier, within enterprise Operating Cash Flow of USD 4.4 billion. The company deployed USD 2.0 billion to shareholders, including USD 1.2 billion of share repurchases and USD 0.7 billion of dividends. Enterprise cash ended the quarter at USD 7.9 billion, supplemented by USD 1.6 billion of longer dated marketable securities. The effective tax rate was 22.9% against 26.7% a year earlier, and full year free cash flow guidance remains in the top half of the USD 6 billion to USD 15 billion target range.