Caterpillar Crushes Estimates with Record-Breaking Q2 Earnings

Caterpillar Inc., trading as CAT, has reported strong earnings for its second quarter of 2026. The company's adjusted earnings per share were $8.17, a significant 73% increase from the same period last year. This figure surpassed the Zacks Consensus Estimate by 30.72%. Higher sales volume and favorable price realization contributed to the impressive performance.

The company's Q2 revenues reached $20.5 billion, a 24% increase from the previous year. Caterpillar's order backlog surged 92% year over year to a record $72 billion. The strong demand was reflected across all three primary operating segments and every geographic region, indicating broad market growth rather than reliance on a single business or market.

Caterpillar's margins expanded sharply in Q2. Cost of goods sold rose 18% to $12.781 billion, while gross profit increased by 34.7% to $7.76 billion from the prior-year quarter. The gross margin expanded by 300 basis points to 37.8%. Selling, general and administrative expenses increased 19% to $2.018 billion.

Caterpillar's management expects strong growth in sales and revenues for the third quarter of 2026, with tariff costs expected to be in line with last year's figures. For 2026 as a whole, Caterpillar forecasts sales and revenue growth in the mid-to-high teens, with adjusted operating margin projected near the bottom of its target range.