01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Caterpillar Inc. reported robust financial results for the first quarter of 2026, demonstrating significant year-over-year growth in both sales and profit.
Total sales and revenues increased by 22% to $17.415 billiona, driven by higher sales volume and favorable price realization across its primary segments. Net profit attributable to common shareholders rose by 27% to $2.549 billion, translating to a diluted earnings per share of $5.47, up from $4.20 in the prior year quarter.
The company's Machinery, Power & Energy (MP&E) segment saw strong performance, with sales up 23%, while the Financial Products segment also experienced growth. Caterpillar ended the quarter with a solid enterprise cash position of $4.1 billionb, indicating continued financial strength and operational efficiency.
02—Key points
Key Highlights
- Total sales and revenues increased by 22% to $17.415 billion in Q1 2026 compared to Q1 2025.
- Profit attributable to common shareholders grew by 27% to $2.549 billion, resulting in a diluted EPS of $5.47, up from $4.20 in the prior year.
- The Machinery, Power & Energy (MP&E) segment experienced a 23% increase in sales, driven by strong performance across Power & Energy, Construction Industries, and Resource Industries.
- Financial Products segment revenues increased by 9% to $1.096 billion.
- The company maintained a strong liquidity position, ending the quarter with $4.1 billion in enterprise cash.
- Operating profit margin was 17.7%, slightly down from 18.1% in the prior year, primarily due to higher manufacturing costs, including tariff impacts.
- Caterpillar completed the acquisition of RPMGlobal Holdings Limited for approximately $733 million, enhancing its capabilities in mining software solutions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Caterpillar Inc kept $0.15.
- Revenue$17.41B100.0%
- Cost of revenue−$11.31B64.9%
- Gross profit$6.11B35.1%
- Operating costs−$3.02B17.4%
- Operating income$3.08B17.7%
- Interest, other & tax−$536.0M3.1%
- Net income$2.55B14.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $17.41B$14.25B | +22.2% |
| Cost of Revenue | $11.31B$8.96B | +26.1% |
| Gross Profit | $6.11B$5.28B | +15.6% |
| R&D Expenses | $537.00M$480.00M | +11.9% |
| SG&A Expenses | $1.82B$1.59B | +14.0% |
| Operating Expenses | $14.33B$11.67B | +22.8% |
| Operating Income | $3.08B$2.58B | +19.6% |
| Net Income | $2.55B$2.00B | +27.3% |
| EPS (Basic) | $5.50$4.22 | +30.3% |
| EPS (Diluted) | $5.47$4.20 | +30.2% |
| Shares Outstanding (Basic) | 463.40M474.90M | −2.4% |
| Shares Outstanding (Diluted) | 465.80M477.10M | −2.4% |
05—Questions
Frequently Asked Questions
What were the primary drivers for the increase in sales and revenues?
The increase in total sales and revenues was primarily driven by a higher sales volume of $2.3 billion and favorable price realization of $426 million. This growth was observed across all three primary segments, with significant contributions from increased sales of equipment to end users and changes in dealer inventories.
How did the operating profit margin change, and what impacted it?
The operating profit margin was 17.7% for the first quarter of 2026, a slight decrease from 18.1% in the first quarter of 2025. This was mainly due to unfavorable manufacturing costs, which included higher tariff costs, and increased selling, general, and administrative (SG&A) and research and development (R&D) expenses, largely driven by higher compensation expenses.
What is the company's outlook for its key end markets in 2026?
Caterpillar anticipates continued positive momentum across its end markets. The Power & Energy segment is expected to see robust growth driven by data center demand and Oil & Gas activity. Construction Industries is projected for growth supported by infrastructure spending, while Resource Industries expects increased demand due to rising copper and gold prices and strong dynamics in Heavy Construction and Quarry & Aggregates.
What is the company's strategy regarding capital allocation and returning value to shareholders?
Caterpillar's top priority is maintaining a strong financial position to support a mid-A credit rating. Beyond that, the company intends to fund operational commitments and strategic growth initiatives. Finally, it aims to return capital to shareholders through dividend growth and share repurchases, targeting substantially all MP&E free cash flow over time.
06—Continue