10-QPeriod: Q1 FY2026

CATERPILLAR INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 6, 2026For Securities:CAT

Summary

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 billion, 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 billion, indicating continued financial strength and operational efficiency.

Financial Highlights

52 data points
Beta

Revenue

$17.41B

35.1% Gross Margin

Net Income

$2.55B

14.6% Net Margin

EPS (Diluted)

$5.47

Total Assets

$95.55B

Cash & Equivalents

$4.07B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$17.41B
Cost of Revenue$11.31B
Gross Profit$6.11B
R&D Expenses$537.00M
SG&A Expenses$1.82B
Operating Expenses$14.33B
Operating Income$3.08B
Net Income$2.55B
EPS (Basic)$5.50
EPS (Diluted)$5.47
Shares Outstanding (Basic)463.40M
Shares Outstanding (Diluted)465.80M

Key Highlights

  • 1Total sales and revenues increased by 22% to $17.415 billion in Q1 2026 compared to Q1 2025.
  • 2Profit 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.
  • 3The Machinery, Power & Energy (MP&E) segment experienced a 23% increase in sales, driven by strong performance across Power & Energy, Construction Industries, and Resource Industries.
  • 4Financial Products segment revenues increased by 9% to $1.096 billion.
  • 5The company maintained a strong liquidity position, ending the quarter with $4.1 billion in enterprise cash.
  • 6Operating profit margin was 17.7%, slightly down from 18.1% in the prior year, primarily due to higher manufacturing costs, including tariff impacts.
  • 7Caterpillar completed the acquisition of RPMGlobal Holdings Limited for approximately $733 million, enhancing its capabilities in mining software solutions.

Frequently Asked Questions

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.

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.

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.

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.