Caterpillar shares plunge after Q3 earnings despite record backlog
Caterpillar reported third‑quarter adjusted earnings of $7.20 per share, beating the $7.06 estimate, while revenue came in at $20.68 billion, shy of the $20.76 billion forecast. Sales rose 17% year over year and the order backlog hit a record $78.1 billion. The results triggered a 9.3% drop in the stock on October 29 and a cumulative 12.7% decline over two days, as the CEO warned that margins are near the bottom of target ranges.
Why it matters
The sharp price fall despite a strong backlog highlights investor concern over modest sales outlook and margin pressure. Analysts responded by cutting price targets to roughly $920, indicating lower near‑term earnings expectations.
Key facts
- 1Adjusted EPS was $7.20 per share, beating the $7.06 estimate. finance.yahoo.com
- 2Revenue was $20.68 billion, slightly below the $20.76 billion expected. finance.yahoo.com
- 3Sales increased 17% year over year. finance.yahoo.com
- 4Order backlog reached a record $78.1 billion. finance.yahoo.com
- 5Shares fell 9.3% on October 29, 2026. finance.yahoo.com
- 6Over two days the stock dropped 12.7%, and analysts cut price targets to about $920. finance.yahoo.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.