Caterpillar Reports 20.5% Revenue Growth in Q3 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
0mins
Source: NASDAQ.COM
- Revenue Growth: Caterpillar achieved a year-over-year revenue growth of 20.5% in Q3 2025, driven by volume increases across all segments, indicating strong performance amid market recovery.
- Record Backlog: The company reported a record-high backlog of $39.9 billion at the end of the quarter, which is expected to provide robust support for revenue in the upcoming quarters, reflecting ongoing growth in infrastructure investments.
- Accelerated Tech Investment: Caterpillar launched the AI-based Cat AI Assistant, enhancing customer interaction with equipment, which is anticipated to further drive sales and customer satisfaction, thereby strengthening market competitiveness.
- Strong Market Performance: Over the past three months, Caterpillar's stock has risen by 23.8%, demonstrating investor confidence in the company's future growth potential, while the Zacks consensus estimates a 20.5% earnings growth for 2026.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CAT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 955.920
Low
395.00
Averages
620.54
High
730.00
Current: 955.920
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Its segments include Construction Industries, Resource Industries and Power & Energy. It also provides financing and related services through its Financial Products segment. Construction Industries segment is responsible for supporting customers using machinery in infrastructure and building construction applications. Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations around the world, and provides select work tools, machinery components, wear and maintenance components and related parts. Power & Energy segment supports customers in oil and gas, power generation, marine, rail and industrial applications, including Caterpillar machines. It is engaged in the provision and development of mining software solutions to the mining industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AI Drives Growth for Industrial Giants Caterpillar and Vertiv
- Caterpillar's Strong Growth: Caterpillar's power and energy division saw a 21% year-over-year revenue increase to $7 billion in the latest quarter, contributing to a 22% overall revenue growth to $17.4 billion, highlighting its critical role in AI data center construction.
- Future Sales Forecast Upgrade: Caterpillar now expects sales of power generation products to triple by 2030 from 2024 levels, significantly boosting market confidence in its status as a key infrastructure supplier, further solidifying its importance in the AI revolution.
- Vertiv's Market Demand: Vertiv reported net sales of $2.65 billion in the first quarter, a 30% year-over-year increase, reflecting strong demand in the AI data center hardware market, particularly for liquid cooling and critical power solutions.
- Cash Flow and Profitability Improvement: Vertiv's free cash flow surged 147% to $653 million, with net income exceeding $390 million, indicating strong growth potential and profitability for the company moving forward.
See More
Caterpillar and Vertiv's Growth in AI Data Centers
- Caterpillar's Revenue Growth: Caterpillar's power and energy division saw a 21% year-over-year revenue increase to $7 billion in the latest quarter, contributing to a 22% overall revenue growth to $17.4 billion, highlighting its crucial role in AI data center construction.
- Future Sales Forecast Upgrade: Caterpillar raised its sales forecast for power generation products, now expecting a threefold increase by 2030 from 2024 levels, indicating strong market confidence and the company's importance in AI infrastructure supply.
- Vertiv's Strong Sales: Vertiv reported net sales of $2.65 billion in the first quarter, a 30% year-over-year increase, reflecting robust demand in the AI data center hardware market, particularly for liquid cooling and critical power solutions.
- Cash Flow and Profitability Improvement: Vertiv's free cash flow surged 147% to $653 million, with net income exceeding $390 million, demonstrating the company's strong financial health and growth potential moving forward.
See More
Caterpillar Shares Rise 3.1% Following Dividend Increase
- Stock Price Surge: Caterpillar (CAT) shares rose 3.1% in the last trading session to close at $985.82, with trading volume significantly exceeding normal levels, indicating strong market confidence in its future performance.
- Dividend Increase: The company announced an 8% increase in its quarterly dividend to $1.63 per share, marking its 32nd consecutive year of growth, reflecting management's confidence in cash generation capabilities and long-term growth prospects while reinforcing its shareholder return record through economic cycles.
- Strong Earnings Expectations: Caterpillar is expected to report quarterly earnings of $6.19 per share, representing a year-over-year increase of 31.1%, with revenues projected at $19.08 billion, up 15.2%, showcasing the company's robust performance in the construction equipment sector.
- Upgraded Investment Rating: Caterpillar currently holds a Zacks Rank of #1 (Strong Buy), indicating analysts' optimistic outlook on its future stock price movements, suggesting investors should monitor changes in earnings estimates to assess the potential for continued price appreciation.
See More
Vanguard U.S. Momentum Factor ETF Shows Strong Performance
- Successful Investment Strategy: Since its launch in 2018, the Vanguard U.S. Momentum Factor ETF has achieved a compound annual return of 15.7%, significantly outperforming the S&P 500's 12.7%, indicating the effectiveness of its momentum-driven strategy and suggesting it will continue to outperform the market.
- High Turnover Characteristic: With a turnover rate of 99.9%, this ETF is expected to replace nearly every stock in its portfolio annually, allowing it to quickly adapt to market changes and capture stocks that are on a sustained upward trend, thereby enhancing investment returns.
- Diverse Industry Exposure: As of May 31, the ETF held 710 stocks across 11 sectors, with the highest weightings in technology, industrials, and healthcare at 22.1%, 20.3%, and 18.6% respectively, showcasing its investment diversity and potential across multiple sectors.
- Reasonable Expense Ratio: Although the ETF's expense ratio is 0.13%, higher than many passive index funds at 0.03%, its strong returns have more than compensated for this cost, indicating its long-term investment value for investors.
See More
Vanguard U.S. Momentum Factor ETF Outperforms Market Consistently
- Consistent Market Outperformance: Since its inception in 2018, the Vanguard U.S. Momentum Factor ETF has consistently outperformed the S&P 500, achieving a 24% return in 2026, more than double that of the index, demonstrating the effectiveness of its momentum-driven strategy.
- High Turnover Strategy: With a turnover rate of 99.9%, this ETF is expected to replace nearly every stock in its portfolio annually, allowing it to quickly capture top-performing stocks in the market, ensuring that investors' capital is always optimally allocated.
- Sector Concentration: As of May 31, the ETF held 710 stocks, with semiconductor giants Micron Technology and Advanced Micro Devices soaring by 764% and 312% respectively over the past 12 months, reflecting strong AI-driven demand for chips and further solidifying the ETF's market position.
- Expense Ratio Consideration: Although the ETF's expense ratio stands at 0.13%, higher than many passive index funds at 0.03%, its robust returns have more than offset this cost, making it a viable long-term investment option for investors.
See More
US Stocks Rise on US-Iran Peace Deal Optimism
- Market Rally: The S&P 500 rose 1.08%, the Dow Jones increased by 0.14%, and the Nasdaq 100 surged 2.48% as optimism over the US-Iran peace deal eased inflation risks, reflecting a positive market sentiment.
- Chip Sector Surge: Intel's stock jumped over 10% after President Trump announced a partnership with Apple to design and produce semiconductors domestically, leading the iShares Semiconductor ETF to rise more than 7%, indicating strong momentum in the tech sector.
- Energy Stocks Weaken: WTI crude oil prices fell to a 3.5-month low, causing significant declines in energy stocks, with SLB, ConocoPhillips, and Halliburton dropping over 3%, highlighting concerns over energy price volatility.
- Supportive Economic Data: Initial jobless claims fell to 226,000, close to the expected 225,000, indicating labor market strength, while the Philadelphia Fed business outlook index rose to 10.3, surpassing expectations, further boosting investor confidence.
See More
AI Drives Growth for Industrial Giants Caterpillar and Vertiv
- Caterpillar's Strong Growth: Caterpillar's power and energy division saw a 21% year-over-year revenue increase to $7 billion in the latest quarter, contributing to a 22% overall revenue growth to $17.4 billion, highlighting its critical role in AI data center construction.
- Future Sales Forecast Upgrade: Caterpillar now expects sales of power generation products to triple by 2030 from 2024 levels, significantly boosting market confidence in its status as a key infrastructure supplier, further solidifying its importance in the AI revolution.
- Vertiv's Market Demand: Vertiv reported net sales of $2.65 billion in the first quarter, a 30% year-over-year increase, reflecting strong demand in the AI data center hardware market, particularly for liquid cooling and critical power solutions.
- Cash Flow and Profitability Improvement: Vertiv's free cash flow surged 147% to $653 million, with net income exceeding $390 million, indicating strong growth potential and profitability for the company moving forward.
See More
Caterpillar and Vertiv's Growth in AI Data Centers
- Caterpillar's Revenue Growth: Caterpillar's power and energy division saw a 21% year-over-year revenue increase to $7 billion in the latest quarter, contributing to a 22% overall revenue growth to $17.4 billion, highlighting its crucial role in AI data center construction.
- Future Sales Forecast Upgrade: Caterpillar raised its sales forecast for power generation products, now expecting a threefold increase by 2030 from 2024 levels, indicating strong market confidence and the company's importance in AI infrastructure supply.
- Vertiv's Strong Sales: Vertiv reported net sales of $2.65 billion in the first quarter, a 30% year-over-year increase, reflecting robust demand in the AI data center hardware market, particularly for liquid cooling and critical power solutions.
- Cash Flow and Profitability Improvement: Vertiv's free cash flow surged 147% to $653 million, with net income exceeding $390 million, demonstrating the company's strong financial health and growth potential moving forward.
See More
Caterpillar Shares Rise 3.1% Following Dividend Increase
- Stock Price Surge: Caterpillar (CAT) shares rose 3.1% in the last trading session to close at $985.82, with trading volume significantly exceeding normal levels, indicating strong market confidence in its future performance.
- Dividend Increase: The company announced an 8% increase in its quarterly dividend to $1.63 per share, marking its 32nd consecutive year of growth, reflecting management's confidence in cash generation capabilities and long-term growth prospects while reinforcing its shareholder return record through economic cycles.
- Strong Earnings Expectations: Caterpillar is expected to report quarterly earnings of $6.19 per share, representing a year-over-year increase of 31.1%, with revenues projected at $19.08 billion, up 15.2%, showcasing the company's robust performance in the construction equipment sector.
- Upgraded Investment Rating: Caterpillar currently holds a Zacks Rank of #1 (Strong Buy), indicating analysts' optimistic outlook on its future stock price movements, suggesting investors should monitor changes in earnings estimates to assess the potential for continued price appreciation.
See More
Vanguard U.S. Momentum Factor ETF Shows Strong Performance
- Successful Investment Strategy: Since its launch in 2018, the Vanguard U.S. Momentum Factor ETF has achieved a compound annual return of 15.7%, significantly outperforming the S&P 500's 12.7%, indicating the effectiveness of its momentum-driven strategy and suggesting it will continue to outperform the market.
- High Turnover Characteristic: With a turnover rate of 99.9%, this ETF is expected to replace nearly every stock in its portfolio annually, allowing it to quickly adapt to market changes and capture stocks that are on a sustained upward trend, thereby enhancing investment returns.
- Diverse Industry Exposure: As of May 31, the ETF held 710 stocks across 11 sectors, with the highest weightings in technology, industrials, and healthcare at 22.1%, 20.3%, and 18.6% respectively, showcasing its investment diversity and potential across multiple sectors.
- Reasonable Expense Ratio: Although the ETF's expense ratio is 0.13%, higher than many passive index funds at 0.03%, its strong returns have more than compensated for this cost, indicating its long-term investment value for investors.
See More
Vanguard U.S. Momentum Factor ETF Outperforms Market Consistently
- Consistent Market Outperformance: Since its inception in 2018, the Vanguard U.S. Momentum Factor ETF has consistently outperformed the S&P 500, achieving a 24% return in 2026, more than double that of the index, demonstrating the effectiveness of its momentum-driven strategy.
- High Turnover Strategy: With a turnover rate of 99.9%, this ETF is expected to replace nearly every stock in its portfolio annually, allowing it to quickly capture top-performing stocks in the market, ensuring that investors' capital is always optimally allocated.
- Sector Concentration: As of May 31, the ETF held 710 stocks, with semiconductor giants Micron Technology and Advanced Micro Devices soaring by 764% and 312% respectively over the past 12 months, reflecting strong AI-driven demand for chips and further solidifying the ETF's market position.
- Expense Ratio Consideration: Although the ETF's expense ratio stands at 0.13%, higher than many passive index funds at 0.03%, its robust returns have more than offset this cost, making it a viable long-term investment option for investors.
See More
US Stocks Rise on US-Iran Peace Deal Optimism
- Market Rally: The S&P 500 rose 1.08%, the Dow Jones increased by 0.14%, and the Nasdaq 100 surged 2.48% as optimism over the US-Iran peace deal eased inflation risks, reflecting a positive market sentiment.
- Chip Sector Surge: Intel's stock jumped over 10% after President Trump announced a partnership with Apple to design and produce semiconductors domestically, leading the iShares Semiconductor ETF to rise more than 7%, indicating strong momentum in the tech sector.
- Energy Stocks Weaken: WTI crude oil prices fell to a 3.5-month low, causing significant declines in energy stocks, with SLB, ConocoPhillips, and Halliburton dropping over 3%, highlighting concerns over energy price volatility.
- Supportive Economic Data: Initial jobless claims fell to 226,000, close to the expected 225,000, indicating labor market strength, while the Philadelphia Fed business outlook index rose to 10.3, surpassing expectations, further boosting investor confidence.
See More
