CAT · Q2 FY2026
CATERPILLAR INC Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $20.54B | $16.57B (yr ago) | Beat |
| EPS | $7.77 | $4.62 (yr ago) | Beat |
| Free Cash Flow | $3.78B | $2.57B (yr ago) | Beat |
| Gross Margin | Not disclosed | Not disclosed (yr ago) | Miss |
| Operating Margin | 20.9% | 17.3% (yr ago) | Beat |
What changed
Caterpillar produced its first quarter above $20 billion of sales, with revenue rising 24.0% year over year as volume increased across all three primary segments. Operating margin expanded 3.6 percentage points to 20.9%, EPS rose 68.2% to $7.77 and quarterly free cash flow increased to $3.78 billion.
Impact on the investment thesis
With no prior SageNoodle valuation, we establish post-earnings base fair value at $600 per share. The quarter raises the earnings baseline, but the $805 market price already discounts substantial durability at 34.6x trailing earnings.