Caterpillar sales jump 17% to $20.7 billion, but the stock falls 9.7% before the bell
Caterpillar's third-quarter revenue rose 17% and adjusted EPS climbed to $7.20 from $4.95, led by data-center power demand, yet shares fell 9.7% in premarket trading.
Caterpillar (CAT) reported third-quarter results at 6:30 AM ET on Thursday. Sales and profit rose sharply from a year ago, but the shares fell 9.7% in premarket trading, according to Reuters at 7:02 AM ET.
| Item | Q3 2026 | Year earlier / note |
|---|---|---|
| Sales and revenues | $20.7B (+17%) | $17.6B |
| Adjusted EPS | $7.20 | $4.95 |
| GAAP EPS | $7.13 | $4.88 |
| Adjusted operating margin | 20.6% | GAAP 20.4% |
Operating profit rose 38% to $4.21 billion, including $128 million of recovered tariff costs. Power & Energy sales rose 18% to $8.78 billion and Construction Industries 18% to $7.98 billion. The company returned $1.9 billion to shareholders and its chief executive pointed to a record backlog.
Why it matters: Power & Energy, which sells turbines and generators for data centers, is now Caterpillar’s largest segment. Results like these make it a read on AI power demand as much as on construction. A drop on a strong quarter suggests the bar was already high after a long rally.
Next: watch whether the premarket loss holds at the open and how other AI-power names such as GE Vernova and Vertiv trade. Full context in the morning report.
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