Caterpillar Inc. reported first‑quarter 2026 results on April 30, 2026, delivering revenue of $17.4 billion, a 22% increase from the $14.2 billion reported in the same quarter a year earlier. Earnings per share rose to $5.47, with an adjusted EPS of $5.54, beating consensus estimates of $4.63 and $4.65 respectively, a beat of $0.84 and $0.89 per share.
Operating margin slipped to 17.7% from 18.1% in Q1 2025, reflecting higher tariff costs and increased SG&A expenses that offset some of the upside. The adjusted operating margin fell to 18.0% from 18.3% year‑over‑year, indicating that cost pressures are beginning to erode profitability even as revenue grows.
Segment performance varied. Construction Industries sales surged 38%, Power & Energy grew 22%, and Resource Industries profit fell 39% due to higher manufacturing costs.
Management raised its full‑year sales growth outlook to a low‑double‑digit percentage range for 2026 and revised the expected tariff cost range to $2.2 billion to $2.4 billion, down from the earlier $2.6 billion estimate. The company also deployed $5.7 billion to shareholders in the quarter, comprising $5.0 billion in share repurchases and $0.7 billion in dividends.
CEO Joe Creed said, "Our team delivered a strong start to the year, driven by resilient end markets and disciplined execution in a dynamic operating environment." He added, "Solid sales and revenues growth, combined with robust order activity, demonstrate the strength of our business and our focus on solving our customers' toughest challenges. A record backlog provides a strong foundation for continued positive momentum." CFO Andrew Bonfield noted, "Welcome to the first quarter 2026 Caterpillar Earnings Conference Call."
Investors welcomed the results, citing the strong earnings beat, improved guidance, and the company’s ability to navigate tariff headwinds while capitalizing on the AI‑driven data‑center demand that is boosting power‑generation equipment sales.
The earnings beat reflects disciplined cost control and a favorable mix of high‑margin construction and power‑generation contracts, offsetting the impact of tariff costs and SG&A increases. The record backlog of $62.7 billion provides visibility into future revenue, while the company’s focus on infrastructure and data‑center projects positions it to benefit from long‑term secular trends.
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