10-QPeriod: Q2 FY2026

CATERPILLAR INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 5, 2026For Securities:CAT

Summary

Caterpillar Inc. (CAT) reported a strong second quarter and first half of 2026, demonstrating significant year-over-year growth across key financial metrics. Total sales and revenues surged by 24% in Q2 2026 to $20.54 billion and by 23% for the first half of 2026 to $37.96 billion. This robust top-line performance was driven by a substantial increase in sales volume and favorable price realization across all major segments, particularly in Construction Industries and Power & Energy. The company also benefited from positive currency impacts in certain regions. Profitability saw a marked improvement, with operating profit increasing by 50% in Q2 and 36% for the first six months of 2026. Operating profit margin expanded to 20.9% in Q2 2026 from 17.3% in Q2 2025, reflecting the benefits of higher sales and improved operational leverage. Diluted earnings per share (EPS) rose to $7.77 in Q2 2026 from $4.62 in the prior year, and to $13.23 for the first half of 2026 from $8.82. The company maintained a strong liquidity position, ending the quarter with $6.7 billion in enterprise cash and robust operating cash flow of $6.2 billion for the first half.

Key Highlights

  • 1Total sales and revenues increased by 24% year-over-year in Q2 2026 to $20.54 billion, and by 23% for the first half of 2026 to $37.96 billion, driven by higher sales volume and price realization.
  • 2Operating profit significantly increased by 50% in Q2 2026 to $4.30 billion and by 36% for the first six months of 2026 to $7.38 billion.
  • 3Diluted earnings per share (EPS) reached $7.77 for Q2 2026, up from $4.62 in Q2 2025, and $13.23 for the first half of 2026, up from $8.82.
  • 4Operating profit margin improved to 20.9% in Q2 2026 from 17.3% in Q2 2025, indicating enhanced profitability and operational efficiency.
  • 5Construction Industries and Power & Energy segments showed particularly strong growth, with sales increasing by 35% and 17% respectively in Q2 2026, driven by increased equipment sales to end-users.
  • 6Caterpillar ended Q2 2026 with $6.7 billion in enterprise cash and generated $6.2 billion in operating cash flow for the first six months of 2026.
  • 7The company announced a strong outlook for the remainder of 2026, anticipating continued sales growth in the mid-to-high teens, driven by sustained demand across its primary segments.

Frequently Asked Questions

The significant increase in sales and revenues, up 24% year-over-year to $20.54 billion, was primarily driven by a substantial increase in sales volume of $3.1 billion and favorable price realization of $595 million. Higher sales volume was largely attributed to increased sales of equipment to end-users across all three primary segments.

Profitability saw a marked improvement. Operating profit increased by 50% to $4.30 billion, and the operating profit margin expanded to 20.9% from 17.3% in the prior year's second quarter. Diluted earnings per share rose to $7.77 from $4.62, reflecting strong operational leverage and improved pricing.

Caterpillar anticipates continued strong performance for the full year 2026, expecting sales and revenues growth in the mid-to-high teens compared to 2025. This growth is expected to be driven by higher sales volume and favorable price realization across all primary segments, supported by sustained demand in key end markets like Power Generation, Oil & Gas, Construction, and Mining.

Caterpillar maintained a strong liquidity position, ending the second quarter of 2026 with $6.7 billion in enterprise cash. The company generated robust operating cash flow of $6.2 billion for the first six months of 2026. Their priorities for cash deployment include maintaining a strong financial position, funding operational commitments and strategic growth initiatives, and returning capital to shareholders through dividends and share repurchases.