Caterpillar Inc. Q3 2026 Earnings Recap

Caterpillar’s shares fell 9.3% after earnings, with the clearest disappointment in Resource Industries: sales to users rose only 4%, below expectations, as mining shipments and commissioning were delayed. The company said third-quarter revenue was in line with its expectations, but the transcript provides no full-year outlook detail to explain the market’s broader concern.

Key Takeaways

• Sales and revenues were $20.7 billion, up 17% year over year; adjusted profit per share was $7.20, up 45%.
• Backlog reached a record $78 billion, up about $38 billion, or 96%, from the year-earlier quarter.
• Power and Energy sales to users grew 36%; power generation increased 75%, driven by demand for turbines and large reciprocating engines used in data centers. Capacity remains the key constraint on further growth.
• Construction Industries sales to users increased 20%, including 27% growth in North America; exceptionally strong rental fleet loading contributed significantly to the increase.
• Adjusted operating profit margin was 20.6%; excluding IEEPA tariff recoveries, it was in line with expectations. MP&E free cash flow was $3.8 billion, with $2 billion returned through dividends and share repurchases.