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.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 620.54 USD with a low forecast of 395.00 USD and a high forecast of 730.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 643.280
Low
395.00
Averages
620.54
High
730.00
Current: 643.280
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. The Company operates through its various segments, namely Construction Industries, Resource Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment. The Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations, as well as provide hydraulic systems, electronics and software for its machines and engines. The Energy & Transportation segment offers product and services that includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services.
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.
Caterpillar Reports Record Q4 2025 Earnings and Strong Outlook
- Record Sales Performance: Caterpillar achieved full-year sales and revenues of $67.6 billion in 2025, marking the highest in the company's history, reflecting strong market demand and effective operational strategies, which are expected to further solidify its market leadership.
- Cash Flow and Shareholder Returns: The company generated $9.5 billion in free cash flow for the year and returned $7.9 billion to shareholders through buybacks and dividends, demonstrating robust financial health and commitment to shareholders, thereby enhancing investor confidence.
- Strong Backlog: Caterpillar's backlog reached $51 billion by the end of 2025, a 71% year-over-year increase, providing strong support for future revenue growth, with approximately 62% of the backlog expected to be delivered within the next 12 months.
- Future Outlook: Management projects 2026 sales and revenues to grow by 5% to 7%, despite facing $2.6 billion in tariff costs, but remains confident in market demand and technology investments, indicating strong potential for continued growth.
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Caterpillar Stock Rises 1.8% Following Strong Q4 Revenue and Profit Results
- Caterpillar's Revenue Growth: Caterpillar reported a revenue increase of 1.8% after the fourth quarter.
- Profit Performance: The company's profits exceeded expectations, indicating strong financial performance.
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