Caterpillar Q3 2026: Data Centers Fuel a Fourth Straight Beat
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Data centers are now a Caterpillar story: Power Generation sales climbed 30% on turbines and large reciprocating engines, helping drive a fourth straight quarterly earnings beat. Revenue landed essentially in line with estimates, and management is pointing to a record backlog heading into the fourth quarter.
Continue ReadingShow less
Caterpillar posted adjusted EPS of $7.20 for Q3 2026, beating expectations and extending its streak of quarterly earnings beats to four in a row. Revenue rose 17.3% year over year and came in line with estimates.
The standout driver was Power Generation, where sales climbed 30% on turbines, turbine-related services, and large reciprocating engines, with data center buildout cited as a key demand source. That segment is increasingly central to how the company grows, a notable evolution for a business long associated with mining trucks and bulldozers.
Sponsored
Operating income rose 38% year over year, with net income and operating cash flow both higher. The company returned cash to shareholders through buybacks and dividends in the quarter, and Construction Industries profit rose 33% on volume and price gains.
CEO Joe Creed pointed to strong order rates and a record backlog as the setup heading into the fourth quarter, though no numeric guidance was provided. North America led geographically with sales up 24%, while Asia Pacific slipped. The company absorbed higher material costs including tariffs, recovering part of those costs through IEEPA tariff provisions.