Q3 25 EPS
$4.95
BEAT +9.43%
Est. $4.52
Q3 25 Revenue
$17.64B
BEAT +5.15%
Est. $16.77B
vs S&P Since Q3 25
+45.9%
BEATING MARKET
CAT +50.7% vs S&P +4.8%
Market Reaction
Did CAT Beat Earnings? Q3 2025 Results
Caterpillar posted a strong third quarter, beating Wall Street expectations on both the top and bottom lines as robust demand across its business segments drove results well ahead of forecasts. The heavy equipment maker reported adjusted earnings per… Read more Caterpillar posted a strong third quarter, beating Wall Street expectations on both the top and bottom lines as robust demand across its business segments drove results well ahead of forecasts. The heavy equipment maker reported adjusted earnings per share of $4.95, clearing the $4.52 consensus estimate by 9.43%, while revenue climbed 9.5% year-over-year to $17.64 billion, topping the $16.77 billion analyst estimate by 5.15%. The standout driver was the Energy and Transportation segment, where Power Generation sales surged 31% to $2.63 billion, fueled by soaring demand for large reciprocating engines tied to data center expansion, a trend that has drawn fresh analyst attention and bullish price target upgrades in recent weeks. Those gains helped offset meaningful headwinds, including $686 million in unfavorable manufacturing costs largely tied to higher tariffs and $191 million in unfavorable price realization, which compressed the operating profit margin to 17.3% from 19.5% a year ago. New CEO Joe Creed pointed to a growing backlog and $3.70 billion in operating cash flow as reasons for confidence in sustained long-term profitable growth.
Key Takeaways
- • Higher sales volume driven by increased equipment sales to end users
- • Strong Power Generation demand from large reciprocating engines for data center applications
- • Oil and Gas turbine and turbine-related services growth
- • Unfavorable manufacturing costs of $686 million largely from higher tariffs
- • Unfavorable price realization of $191 million across Construction and Resource Industries
- • Higher effective tax rate of 26.7% vs 20.7% driven by U.S. tax legislation changes
- • Favorable foreign currency impacts boosting other income
- • Higher SG&A/R&D expenses driven by higher compensation including short-term incentive compensation
- • Insurance claim proceeds contributing to favorable other operating income/expense
CAT YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
CAT Revenue by Segment
With YoY comparisons, source: SEC Filings
CAT Revenue by Geography
With YoY comparisons, source: SEC Filings
“Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments.”
— Joe Creed, Q3 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% |