Caterpillar stock jumps on strong earnings and revenue beat

Investing.com -- Caterpillar Inc. (NYSE: CAT) reported second-quarter results before the open on Tuesday, exceeding analyst expectations and sending its stock higher in premarket trading.

Adjusted earnings per share of $8.17 beat the consensus estimate of $6.19 by $1.98. Revenue reached $20.5 billion, surpassing the $19.24 billion analyst estimate and marking a 24% increase from $16.6 billion in the same quarter last year.

The company's strong performance was driven by higher sales volume of $3.1 billion and favorable price realization of $595 million across all three primary segments. "This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," said Chairman and CEO Joe Creed. Shares are up 5.2% premarket.

Second-quarter adjusted profit per share increased to $8.17 from $4.72 in the prior-year period. Operating profit climbed 50% to $4.3 billion, compared with $2.9 billion in the second quarter of 2025. The adjusted operating profit margin expanded to 21.9% from 17.6% YoY.

Construction Industries led the growth with sales jumping 35% to $8.3 billion, driven primarily by higher equipment sales to end users in North America. Power & Energy segment sales increased 17% to $8.2 billion, with notable strength in data center applications for large reciprocating engines and turbines. Resource Industries sales rose 20% to $4.6 billion, supported by higher equipment sales in mining and rail sectors.

Financial Products segment revenues increased 10% to $1.1 billion, while segment profit rose 32% to $328 million, benefiting from higher average earning assets and improved margins at Insurance Services.

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