Caterpillar Inc. reported a historic Q2 earnings performance on July 27, 2023, delivering an EPS of $8.17, which surpassed estimates by 430%. Revenue reached $20.5 billion, marking the company’s first $20 billion quarter—up 24% year-over-year and exceeding the $19.3 billion estimate. Key drivers included a 72% sales increase in power generation and an adjusted operating margin expansion to 21.9% from 17.6% a year prior. The company’s backlog surged to $72.1 billion, up 92% year-over-year, indicating sustained demand, particularly from AI and data center sectors.
Based in Irving, Texas, Caterpillar operates across three primary segments: Construction Industries, Resource Industries, and Energy & Transportation. Management raised its full year 2026 revenue growth outlook to mid-to-high teens, fueled by increasing orders from Power & Energy customers that are stretching as far out as 2029 and 2030. Analysts are positively revising their earnings estimates across all timeframes, with the Zacks Consensus Estimate for the current year rising from $24.21 to $26.30 over the past 90 days.
Caterpillar is currently valued at $390 billion, with a forward PE of 32. The stock has shown volatility post-earnings but remains underpinned by a robust demand backdrop across its sectors.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
