Caterpillar Posts Record Quarter, Lifts Full-Year Outlook Amid Strong Demand

Caterpillar, an industrial giant, posted record quarterly sales and revenue of $20.5 billion in Q2 2026, a 24% year-over-year increase that surpassed $20 billion for the first time in its history. The company's broad-based demand strength across key end markets drove this growth.

Adjusted operating profit climbed to $4.5 billion, with an adjusted operating margin reaching 21.9%, a 430 basis-point improvement from a year earlier. Adjusted profit per share surged 73% to $8.17, reflecting operating leverage, favorable mix, and productivity gains despite escalating cost headwinds.

Caterpillar's backlog expanded by $9 billion sequentially to $72 billion, nearly doubling versus Q2 last year with a roughly $35 billion increase. Management noted that 59% of this backlog is scheduled for delivery within 12 months, providing strong visibility and underpinning the decision to raise full-year guidance.

The company lifted its full-year 2026 outlook to mid- to high-teens sales and revenue growth, signaling confidence that current momentum will carry into the second half. It also expects adjusted operating margins to come in higher than prior expectations, even when excluding the Q2 tariff recovery benefit.