Caterpillar: Q3 Earnings Snapshot

Caterpillar (CAT) stock fell 7% after reporting Q3 2026 earnings of $7.20 per share, beating estimates, but offering a moderate outlook. Revenue rose 17% to $20.68B. Deere (DE) gained 0.46%, while PACCAR (PCAR) dropped 0.61%. CAT's valuation at 25x forward earnings left little room for modest growth.

Caterpillar (CAT) reported Q3 adjusted profit above estimates and a record $78B backlog, but revenue was in line, and guidance was modest. The stock fell over 12%, its worst day since April 2025, despite being the Dow's best performer earlier in 2026. Investors have been moving away from cyclical stocks like CAT into safer sectors.

Eli Lilly reported strong Q3 earnings, raising its full-year forecast. Key drugs Mounjaro and Zepbound generated $10.7B and $5.35B in sales, respectively, contributing to total revenue of $24.4B. The company also announced positive study results for Retatrutide, aiming for approval in 2027. Shares are up 20% year-to-date, contrasting with Novo Nordisk's 25% decline.

US stocks declined on Thursday, with the S&P 500 down 0.5%, Nasdaq down 1.4%, and Dow down 310 points. Alphabet fell 12% after missing earnings and revenue expectations. Amazon and Intel also dropped ahead of their earnings reports. Caterpillar fell nearly 12% due to moderate sales growth forecasts. Microsoft rose 0.8% on strong cloud sales. Eli Lilly and Merck gained 7.3% and 3.3%, respectively, after raising their revenue outlooks.

Caterpillar (CAT) reported Q3 earnings of $7.20 per share, beating estimates, with revenue up 17% to $20.7B. However, shares fell 10% premarket due to an unchanged annual sales forecast. The company's record order backlog grew to $78.1B, though at a slower pace. Caterpillar expects 2026 revenue growth in the mid-to-high teens, while analysts anticipate ~18%. The company also maintained its annual tariff cost forecast at $2.2B.

Caterpillar (CAT) shares dropped 12% despite Q3 earnings beat. Adjusted EPS of $7.20 exceeded estimates, while revenue of $20.7B matched them. Management expects moderate Q4 growth, below consensus. CAT trades at 25x forward P/E, higher than its 5-year average. Competitors GE Vernova (GEV) and Vertiv (VRT) raised guidance, trading at 38x and 28x forward P/E, respectively.