Caterpillar (CAT) Q3 2026 earnings summary

Executive summary

• Q3 sales and revenues rose 17% YoY to $20.682B; adjusted profit per share increased 45% to $7.20.

• Strong orders and end-market demand supported a record $78.1B backlog, up $6.0B QoQ and $38.2B YoY.

Financial highlights

• GAAP operating profit rose 38% to $4.214B; adjusted operating profit was $4.255B, with a 20.6% margin versus 17.5%.

• Profit attributable to common shareholders was $3.287B versus $2.300B; diluted EPS was $7.13 versus $4.88, and adjusted EPS was $7.20 versus $4.95.

• Revenue growth included $2.207B from sales volume and $663M from favorable price realization; higher equipment sales to end users drove much of the volume increase.

• MP&E free cash flow was $3.8B, up 19% YoY; MP&E operating cash flow was $4.5B, up 16%.

• Nine-month sales and revenues were $58.640B versus $48.456B; operating profit was $11.594B versus $8.491B, and diluted EPS was $20.36 versus $13.69.

Outlook and guidance

• FY 2026 sales and revenues growth guidance remained mid-to-high teens; adjusted operating profit margin is expected near the bottom of the annual target range, excluding IEEPA tariff recoveries.

• FY MP&E free cash flow is expected in the top half of the $6B–$15B target range; capital expenditures are forecast at $3.3B.

• Q4 sales and revenues are expected to show moderate YoY growth, with adjusted operating profit margin higher YoY.

• FY tariff costs are forecast at ~$2.2B excluding IEEPA recoveries; Q4 tariff costs are expected at ~$600M, with no additional Q4 recoveries assumed.

• FY restructuring costs are forecast at ~$300M; the annual effective tax rate is expected at 23.0%, excluding discrete items.