| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 23 | 35.1x | 17.8x | Bottom tier | |
Growth | 55 | 18.4% | 7.1% | Around median | |
Quality | 78 | 15.8% | 4.5% | Top tier | |
Safety | 60 | 2.5x | 2.6x | Around median | |
Capital Return | 38 | 0.73% | 2.12% | Bottom tier | |
Momentum | 72 | 98.1% | 2.9% | Top tier | |
Sentiment | 68 | 18 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Caterpillar operates through three main industrial pillars: Construction Industries, Resource Industries, and Energy & Transportation, which management referred to as Power & Energy during the Q2 FY2026 earnings call. The company generates revenue from selling construction and mining equipment, engines, generators, and turbines used in data centers and oil and gas, as well as parts and services, while Cat Financial adds equipment-related financing and insurance revenue.
In Q2 FY2026, Caterpillar reported record sales and revenues of $20.5 billion, up 24% year over year, surpassing $20 billion in a single quarter for the first time in its history. Operating profit rose 50% to $4.3 billion, while adjusted operating profit reached $4.5 billion at a margin of 21.9%, up 430 basis points. Earnings per share were $7.77, and adjusted earnings per share were $8.17, up 73%.
Growth was broad-based in Q2 FY2026: Power & Energy sales rose 17% to $8.2 billion with a segment margin of 24.6%, Construction Industries sales jumped 35% to $8.3 billion with a margin of 23.3%, and Resource Industries sales increased 20% to $4.6 billion with a margin of 14.9%. Financial Products revenues also rose 10% to $1.1 billion, while EDGAR data for the twelve months ended in 2026 show revenue of $70.8 billion, gross profit of $23.7 billion, and net income of $9.4 billion.
The average analyst price target is $958.23, within a wide range from $785 to $1155, while the consensus rates the stock a “Buy.” The average target is below the top of the 52-week range of $1073.46, while the highest target exceeds that level, reflecting optimism that growth in power and construction will continue, alongside clear divergence over how much growth justifies the valuation. Conversely, the lowest target of $785 and reports on August 11, 2026 pointing to an elevated valuation highlight the risk of repricing if backlog execution slows or tariff and cost pressures on margins persist.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Caterpillar generated sales and revenues of $20.5 billion, up 24% year over year, and exceeded $20 billion in a single quarter for the first time. Adjusted operating profit was $4.5 billion at a margin of 21.9%, and adjusted earnings per share reached $8.17. Growth came from higher volume and pricing, with Construction Industries sales increasing 35%, Resource Industries sales rising 20%, and Power & Energy sales growing 17%.
Power generation sales to users rose 72% in Q2 FY2026, driven by strong demand for large generators and turbines used in data centers. The company restarted a 10-megawatt gas engine platform and is targeting approximately 1.5 gigawatts of production capacity from it, with shipments beginning in Q4 FY2026. It also converted a 250,000-square-foot facility in Wamego, Kansas, in less than 12 months to assemble and ship the PGM130 used in data center power generation.
The order backlog reached $72 billion in Q2 FY2026, up 92% year over year, with all three main segments contributing to its growth. Within Power & Energy, most of the growth came from power generation and oil and gas, while the oil and gas backlog was nearly double its level a year earlier. Construction Industries is also supported by infrastructure and rental projects, while Resource Industries benefits from demand for copper and gold, heavy construction, quarrying, and aggregates.
Automated analysis for informational purposes only — not investment advice.
Management raised its FY2026 sales and revenues growth outlook to the mid-to-high teens and expects strong growth across all three main segments. It also raised its Machinery, Energy & Transportation free cash flow outlook to the upper half of the annual range of $6 billion to $15 billion. Conversely, it expects tariff costs of approximately $2.2 billion and the adjusted operating margin to be near the lower end of the targeted range when IEEPA refunds are excluded.
The main operating risks are tariffs and higher depreciation, freight, production capacity spending, and research and development expenses, which could limit margin expansion. Construction Industries expects dealer inventory to decline by more than $1 billion in Q4 FY2026, alongside weakness in the Middle East, Asia-Pacific outside China, and some residential construction markets. Additional risks include the wide range of analyst targets between $785 and $1155 and insider net selling of $26.2 million during the three months ended August 28, 2026, while recognizing that those sales may have been prearranged.
