Q2 25 EPS
$4.72
MISS 3.73%
Est. $4.90
Q2 25 Revenue
$16.57B
BEAT +1.88%
Est. $16.26B
vs S&P Since Q2 25
+93.6%
BEATING MARKET
CAT +108.3% vs S&P +14.8%
Market Reaction
Did CAT Beat Earnings? Q2 2025 Results
Caterpillar posted a mixed second quarter, with tariff-driven margin pressure overshadowing a modest revenue beat and leaving earnings well short of Wall Street's expectations. The industrial giant reported adjusted earnings per share of $4.72, missi… Read more Caterpillar posted a mixed second quarter, with tariff-driven margin pressure overshadowing a modest revenue beat and leaving earnings well short of Wall Street's expectations. The industrial giant reported adjusted earnings per share of $4.72, missing the $4.90 consensus estimate by 3.73% and falling sharply from $5.99 a year ago, even as revenue of $16.57 billion edged 1.88% above forecasts despite slipping 0.7% year-over-year. The central culprit was a sweeping tariff impact, with higher manufacturing costs dragging operating profit down 18% to $2.86 billion and compressing operating margin from 20.9% to 17.3%; the company has flagged a full-year tariff hit of $1.3 billion to $1.5 billion and is implementing measures including discretionary spending cuts and dual-sourcing to limit further damage. The pain was unevenly distributed across segments, with Energy and Transportation rising 7% to $7.84 billion on a surge in data center power generation demand, while Construction Industries fell 7% to $6.19 billion on unfavorable pricing and dealer destocking, particularly in North America.
Key Takeaways
- • Unfavorable price realization of $414 million weighed on consolidated revenue
- • Higher tariffs drove unfavorable manufacturing costs across all equipment segments
- • Power Generation sales surged 28% driven by large reciprocating engines for data center applications
- • Higher sales of equipment to end users partially offset price realization headwinds
- • Dealer inventory destocking in North America and Latin America impacted Construction Industries
- • Energy & Transportation achieved favorable price realization of $139 million
- • Global machine retail sales to end users up 3% in Q2 2025
- • E&T retail sales up 9% in Q2 2025
CAT YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
CAT Revenue by Segment
With YoY comparisons, source: SEC Filings
CAT Revenue by Geography
With YoY comparisons, source: SEC Filings
“The Caterpillar team remained focused on customer success and demonstrated solid operational performance this quarter.”
— Joe Creed, Q2 2025 Earnings Press Release
CAT Earnings Trends
CAT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CAT EPS Trend
Earnings per share: estimate vs actual
CAT Revenue Trend
Quarterly revenue: estimate vs actual
CAT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $5.54 | — | $17.42B | — |
| Q4 25 BEAT FY | $4.71 | $5.16 | +9.55% | $19.13B | +7.41% |
| FY Full Year | $18.70 | $19.06 | +1.92% | $67.59B | +1.99% |
| Q3 25 BEAT | $4.52 | $4.95 | +9.43% | $17.64B | +5.15% |
| Q2 25 MISS | $4.90 | $4.72 | -3.73% | $16.57B | +1.88% |
| Q1 25 MISS | $4.35 | $4.25 | -2.31% | $14.25B | -2.28% |