Third Quarter 2026
Filed Oct 29, 2026Caterpillar Reports Third-Quarter 2026 Results
Third-quarter sales and revenues increased 17%, operating profit increased 38%, and profit per share increased to $7.13. All three primary machinery segments posted higher sales and segment profit, while the company cited strong order rates and a record backlog.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third-quarter total sales and revenuesGAAP | $20.68B | – | 17% |
| Third-quarter sales of Machinery, Power & EnergyGAAP | $19.65B | – | 18% |
| Third-quarter revenues of Financial ProductsGAAP | $1.03B | – | 13% |
| Third-quarter operating profitGAAP | $4.21B | – | 38% |
| Third-quarter operating profit marginGAAP | 20.4% | – | – |
| Third-quarter adjusted operating profitnon-GAAP | $4.25B | – | – |
| Third-quarter adjusted operating profit marginnon-GAAP | 20.6% | – | – |
| Third-quarter total operating costsGAAP | $16.47B | – | – |
| Third-quarter cost of goods soldGAAP | $13.33B | – | – |
| Third-quarter selling, general and administrative expensesGAAP | $1.80B | – | – |
| Third-quarter research and development expensesGAAP | $596M | – | – |
| Third-quarter interest expense of Financial ProductsGAAP | $384M | – | – |
| Third-quarter other operating (income) expensesGAAP | $359M | – | – |
| Third-quarter other income (expense)GAAP | income of $135 million | – | – |
| Third-quarter consolidated profit before taxesGAAP | $4.22B | – | – |
| Third-quarter provision for income taxesGAAP | $968M | – | – |
| Third-quarter effective tax rateGAAP | 22.9% | – | – |
| Third-quarter annual effective tax rate, excluding discrete itemsnon-GAAP | 23.0% | – | – |
| Third-quarter profitGAAP | $3.29B | – | – |
| Third-quarter profit per common shareGAAP | $7.16 | – | – |
| Third-quarter profit per common share, dilutedGAAP | $7.13 | – | – |
| Third-quarter adjusted profitnon-GAAP | $3.32B | – | – |
| Third-quarter adjusted profit per sharenon-GAAP | $7.20 | – | – |
| Third-quarter restructuring costsother | $41M | – | – |
| Nine-month total sales and revenuesGAAP | $58.64B | – | – |
| Nine-month operating profitGAAP | $11.59B | – | – |
| Nine-month profitGAAP | $9.43B | – | – |
| Nine-month diluted profit per common shareGAAP | $20.36 | – | – |
| Nine-month net cash provided by operating activitiesGAAP | $10.59B | – | – |
| Nine-month capital expenditures excluding equipment leased to othersGAAP | −$2.01B | – | – |
| Nine-month expenditures for equipment leased to othersGAAP | −$1.21B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Power & EnergyHigher sales volume of $879 million and favorable price realization of $216 million. Power Generation sales increased mainly in turbines and turbine-related services and in large reciprocating engines, primarily in data center applications. | $8.78B | – | 18% |
| Construction IndustriesHigher sales volume of $874 million and favorable price realization of $349 million. Higher sales volume was primarily driven by higher sales of equipment to end users. | $7.98B | – | 18% |
| Resource IndustriesHigher sales volume of $478 million and favorable price realization of $96 million. Mining, Heavy Construction and Quarry & Aggregates sales increased primarily due to changes in dealer inventories, while Rail sales decreased primarily due to lower international locomotive deliveries. | $4.62B | – | 15% |
| Financial Products SegmentHigher average earning assets contributed $125 million across all regions, partially offset by a $38 million unfavorable impact from lower average financing rates across all regions except Asia/Pacific. | $1.18B | – | 9% |
| All Other SegmentThe filing reported an inter-segment/other change of $(6) million. | $72M | – | (1%) |
Capital returns
- The company deployed $1.2 billion of cash for repurchases of Caterpillar common stock in the third quarter.
- The company deployed $0.7 billion of cash for dividends in the third quarter.
- Nine-month dividends paid were $(2,148) million, compared with $(2,043) million.
- Nine-month payments to purchase common stock were $(7,745) million, compared with $(4,850) million.
- Nine-month excise tax paid on purchases of common stock was $(49) million, compared with $(73) million.
What drove it
- Total sales and revenues increased primarily because of higher sales volume of $2.2 billion and favorable price realization of $663 million.
- Higher sales volume was mainly driven by higher sales of equipment to end users, and sales were higher across the three primary segments.
- Operating profit increased primarily due to the profit impact of higher sales volume.
- Third-quarter operating profit included $128 million of International Emergency Economic Power Act (IEEPA) tariff recoveries.
- Power & Energy segment profit increased mainly due to the profit impact of higher sales volume.
- Construction Industries segment profit benefited from higher sales volume and favorable price realization.
- Financial Products profit benefited from higher average earning assets, partially offset by higher provision for credit losses at Cat Financial.
Concerns
- Resource Industries segment profit margin was 13.5%, compared with 13.6%, and unfavorable manufacturing costs of $208 million primarily reflected higher material costs, including tariffs.
- Construction Industries faced unfavorable manufacturing costs of $252 million, including the impact of higher freight.
- Financial Products had higher provision for credit losses at Cat Financial of $34 million.
- Cat Financial's allowance for credit losses was $332 million, or 0.91% of finance receivables, at September 30, 2026, compared with $294 million, or 0.84% of finance receivables, at June 30, 2026.
- Asia/Pacific consolidated sales and revenues were down 2%; Resource Industries Asia/Pacific sales were down 6% and Power & Energy Asia/Pacific sales were down 4%.
What to watch
- Whether strong order rates and the record backlog continue to support equipment sales to end users.
- Power Generation demand in turbines, turbine-related services and large reciprocating engines for data center applications.
- The effect of tariffs, material costs and freight on manufacturing costs and segment margins.
- Dealer inventory changes, which contributed to sales-volume gains in Latin America and Asia/Pacific Construction Industries and in Mining, Heavy Construction and Quarry & Aggregates.
- Cat Financial credit performance, including past dues, write-offs and the allowance for credit losses.
Balance sheet and cash flow
- Enterprise operating cash flow was $4.4 billion for the third quarter of 2026.
- Enterprise cash was $7.9 billion at the end of the third quarter.
- Cash and cash equivalents were $7,929 million at September 30, 2026, compared with $9,980 million at December 31, 2025.
- Inventories were $22,214 million at September 30, 2026, compared with $18,135 million at December 31, 2025.
- Total debt due within one year was $8,180 million at September 30, 2026, including $36 million for Machinery, Power & Energy and $8,144 million for Financial Products.
- Long-term debt due after one year was $32,166 million at September 30, 2026, including $10,614 million for Machinery, Power & Energy and $21,552 million for Financial Products.
- Nine-month net cash used for investing activities was $(4,755) million, compared with $(2,827) million.
- Nine-month net cash used for financing activities was $(7,826) million, compared with $(4,650) million.
- Cash, cash equivalents and restricted cash at the end of the nine-month period were $7,935 million, compared with $7,544 million.
Analysis
Caterpillar delivered broad-based third-quarter growth. Total sales and revenues were $20,682 million, up 17% from $17,638 million, led by higher sales volume of $2.2 billion and favorable price realization of $663 million. The company stated that volume was mainly driven by higher sales of equipment to end users, while all three primary machinery segments reported higher sales. Management also cited strong order rates and a record backlog.
Profit growth outpaced revenue growth. GAAP operating profit rose 38% to $4,214 million and the GAAP operating profit margin expanded to 20.4% from 17.3%. Adjusted operating profit was $4,255 million and adjusted operating profit margin was 20.6%, compared with $3,089 million and 17.5%, respectively. GAAP diluted profit per share was $7.13 versus $4.88, while adjusted profit per share was $7.20 versus $4.95. The quarter's operating profit included $128 million of IEEPA tariff recoveries.
Power & Energy was the largest segment at $8,784 million of sales, up 18%, with power-generation demand supported by turbines, turbine-related services and large reciprocating engines primarily for data center applications. Construction Industries sales increased 18% to $7,983 million and segment profit increased 33% to $1,831 million. Resource Industries sales increased 15% to $4,615 million, but its segment profit margin declined to 13.5% from 13.6% as unfavorable manufacturing costs, primarily higher material costs including tariffs, partly offset volume and price benefits.
Financial Products revenue increased 9% to $1,177 million and segment profit increased 10% to $264 million. Higher average earning assets supported both measures, but lower average financing rates constrained revenue and a higher provision for credit losses constrained segment profit. Past dues improved to 1.31% from 1.47%, while the allowance for credit losses increased to $332 million, or 0.91% of finance receivables, from $294 million, or 0.84%, at June 30, 2026.
Cash deployment remained substantial. The company reported $4.4 billion of third-quarter enterprise operating cash flow and $7.9 billion of enterprise cash, while deploying $1.2 billion for share repurchases and $0.7 billion for dividends in the quarter. For the nine months, operating cash flow was $10,593 million, payments to purchase common stock were $(7,745) million and dividends paid were $(2,148) million. The release did not provide forward financial guidance.
Management, verbatim
Our third-quarter results reflect the durability of our end markets, with strong order rates and a record backlog.
Joe Creed, Caterpillar Chairman and CEO
Our team continues to execute our strategic priorities in a dynamic environment, positioning us for a strong year while delivering long-term value for our customers and shareholders.
Joe Creed, Caterpillar Chairman and CEO
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
- Forward guidance for any other metric
- Comparison with prior guidance, because no previous outlook was provided
- Gross margin, which was not reported
- Third-quarter free cash flow, which was not reported
- Third-quarter debt balance, which was not reported as a period-specific third-quarter cash-flow metric
- Prior-quarter comparisons for reported income-statement and segment metrics
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.