Q3 25 EPS
$4.95
BEAT +9.43%
Est. $4.52
Q3 25 Revenue
$17.64B
BEAT +5.15%
Est. $16.77B
vs S&P Since Q3 25
+67.2%
BEATING MARKET
CAT +75.0% vs S&P +7.8%
Market Reaction
Did CAT Beat Earnings? Q3 2025 Results
Caterpillar posted a decisive beat in the third quarter of 2025, with adjusted earnings per share of $4.95 topping the consensus estimate of $4.52 by 9.43% and revenue of $17.64 billion exceeding expectations by 5.15% while rising 9.5% year over year… Read more Caterpillar posted a decisive beat in the third quarter of 2025, with adjusted earnings per share of $4.95 topping the consensus estimate of $4.52 by 9.43% and revenue of $17.64 billion exceeding expectations by 5.15% while rising 9.5% year over year. The standout driver was the Energy and Transportation segment, where Power Generation sales surged 31% to $2.63 billion on soaring demand for large reciprocating engines tied to data center buildout, a trend that has drawn fresh analyst attention and prompted at least one major upgrade with a significantly higher price target. Yet the quarter carried a notable tension: despite strong volume, operating margins contracted to 17.3% from 19.5% a year ago, as $686 million in tariff-driven manufacturing costs and $191 million in unfavorable price realization weighed on profitability. CEO Joe Creed pointed to a growing backlog as a foundation for sustained momentum, while the company returned $1.10 billion to shareholders through dividends and buybacks, reinforcing confidence heading into the fourth quarter.
Key Takeaways
- • Higher sales volume driven by increased sales of equipment to end users
- • Power Generation sales increased 31% driven by large reciprocating engines for data center applications
- • Oil and Gas sales increased 20% on turbines, turbine-related services, and reciprocating engines for gas compression
- • Unfavorable manufacturing costs of $686 million largely reflecting impact of higher tariffs
- • Unfavorable price realization of $191 million
- • Favorable other operating income/expense of $180 million including insurance claim proceeds
- • Favorable foreign currency impacts in other income/expense
- • Higher effective tax rate of 26.7% vs 20.7% in prior year quarter
CAT YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
CAT Revenue by Segment
With YoY comparisons, source: SEC Filings
CAT Revenue by Geography
With YoY comparisons, source: SEC Filings
“Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments.”
— Joe Creed, Q3 2025 Earnings Press Release
CAT Earnings Trends
CAT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CAT EPS Trend
Earnings per share: estimate vs actual
CAT Revenue Trend
Quarterly revenue: estimate vs actual
CAT Quarterly Results
7 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $4.64 | $5.54 | +19.30% | $17.42B | +5.94% |
| Q4 25 BEAT FY | $4.71 | $5.16 | +9.51% | $19.13B | +7.74% |
| FY Full Year | — | $19.06 | — | $67.59B | — |
| Q3 25 BEAT | $4.52 | $4.95 | +9.43% | $17.64B | +5.15% |
| Q2 25 MISS | $4.90 | $4.72 | -3.73% | $16.57B | +1.88% |
| Q1 25 MISS | $4.35 | $4.25 | -2.31% | $14.25B | -2.28% |
| Q4 24 BEAT FY | $5.03 | $5.14 | +2.25% | $16.22B | -1.93% |
| FY Full Year | — | $21.90 | — | $64.81B | — |
| Q3 24 MISS | $5.34 | $5.17 | -3.18% | $16.11B | +0.13% |