Caterpillar Inc. Reports Lower Q3 Profit, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 29 2025
0mins
Source: NASDAQ.COM
Earnings Report: Caterpillar Inc. reported third-quarter earnings of $2.300 billion ($4.88 per share), a decrease from $2.464 billion ($5.06 per share) last year, but exceeded analysts' expectations of $4.52 per share.
Adjusted Earnings: Excluding special items, the adjusted earnings for the quarter were $2.328 billion or $4.95 per share.
Revenue Growth: The company's revenue increased by 9.5% to $17.638 billion, up from $16.106 billion in the previous year.
Analyst Expectations: Analysts typically exclude special items in their estimates, which contributed to the positive comparison against the expected earnings per share.
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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
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- 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.
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- 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
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- Profit Performance: The company's profits exceeded expectations, indicating strong financial performance.
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