Caterpillar reported a stronger third quarter, with sales and revenue rising 17% from a year earlier to $20.7 billion. Profit per share increased to $7.13, while adjusted profit per share was $7.20. The company attributed the growth mainly to higher sales volume and improved pricing.
Caterpillar also reported higher operating margins and returned cash to shareholders through stock repurchases and dividends.
Key details
- Sales growth: Third-quarter sales and revenue were $20.7 billion, up from $17.6 billion a year earlier. Higher sales volume added $2.2 billion, while favorable price realization contributed $663 million.
- Profit and margins: Profit per share was $7.13, compared with $4.88 in the third quarter of 2025. Adjusted profit per share was $7.20, up from $4.95. The adjusted figures exclude restructuring costs.
- Operating performance: Operating margin rose to 20.4% from 17.3%. Adjusted operating margin, also excluding restructuring costs, increased to 20.6% from 17.5%.
- Cash and shareholder returns: Enterprise operating cash flow was $4.4 billion. Caterpillar ended the quarter with $7.9 billion in enterprise cash and used $1.2 billion to repurchase shares and $700 million to pay dividends.
- Demand: CEO Joe Creed cited strong order rates and a record backlog, describing the company’s end markets as durable. No figures for orders or backlog are included in the earnings details presented here.
What it means
The quarter combined higher sales with wider margins, alongside increased per-share profit. Caterpillar also directed nearly $2 billion to share repurchases and dividends during the period.