Caterpillar (CAT) has been a standout performer in the industrial sector, buoyed by optimism around infrastructure spending and a resilient U.S. economy. Yet, after a sharp rally, investors are asking the key question — has the stock run too far, too fast?
Caterpillar's NYSE: CAT stock will top $650 by year's end because its solid growth is underpinned by AI demand. That's right, Caterpillar, industrial giant that it is, is an AI play whose stock price uptrend has legs.
Here are some of the major companies whose stocks moved on the week's news.
Caterpillar has rallied ~40% since my latest update, seemingly driven by AI-powered growth in its Energy & Transportation segment. AI data center construction is fueling robust top-line results, but tariff-related manufacturing costs are eroding profitability, with operating profit and EPS both declining YoY. Despite record revenues and improved free cash flow, capital returns to shareholders have dropped, and so management remains cautious amid ongoing tariff headwinds.
Caterpillar just crushed Q3 earnings, up 11% in a day, thanks to a record $39.8B backlog and surging Energy & Transportation demand tied to data center power needs. The Energy & Transportation segment now leads sales, fueled by +33% growth in power generation for AI infrastructure—a structural shift in CAT's business mix. Despite high valuation multiples, CAT's recurring service revenues, strong backlog, and AI tailwinds justify a bullish outlook, though caution on FOMO is advised.
Caterpillar's Q3 earnings beat estimates as record revenues and higher volumes offset tariff and cost pressures.
Caterpillar (CAT) shares skyrocketed to an all-time high when the big farm and construction machines maker easily beat profit and sales expectations, with strong demand for data center power-generation equipment more than offsetting tariff headwinds.
Major U.S. equities indexes extended their record-setting run Wednesday afternoon ahead of an expected decision from the Federal Reserve to cut interest rates. The Dow, S&P 500, and Nasdaq all climbed to all-time highs.
Caterpillar Inc. ( CAT ) Q3 2025 Earnings Call October 29, 2025 8:30 AM EDT Company Participants Alex Kapper - Vice President of Investor Relations Joseph Creed - CEO & Director Andrew R. Bonfield - Chief Financial Officer Conference Call Participants Kyle Menges - Citigroup Inc., Research Division Angel Castillo Malpica - Morgan Stanley, Research Division David Raso - Evercore ISI Institutional Equities, Research Division Tami Zakaria - JPMorgan Chase & Co, Research Division Mircea Dobre - Robert W.
The headline numbers for Caterpillar (CAT) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Caterpillar reported third-quarter earnings of $4.95 per share, crushing the $4.52 consensus estimate by 43 cents.
Caterpillar (CAT) came out with quarterly earnings of $4.95 per share, beating the Zacks Consensus Estimate of $4.52 per share. This compares to earnings of $5.17 per share a year ago.