Caterpillar Inc (CAT)
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Caterpillar is the textbook Dividend Aristocrat: 32 consecutive years of higher annual dividends, a quarterly payout since 1933 — and rank 1 in the U.S. selection of our in-house Dividend Aristocrats scanner (as of July 18, 2026). We read the annual reports (10-K), the quarterly report (10-Q) as of March 31, 2026, and the June 2026 dividend announcement: an order backlog that more than doubled from $30.0 billion to $62.7 billion in 15 months because AI data centers need power — but also a profit that fell 15 percent in 2025, an expected $2.6 billion tariff bill for 2026, and a valuation that prices the machinery maker like a growth stock. Not investment advice — just a reminder that a royal title says nothing about the price of admission.
Appears in These Scanners
This stock currently matches 2 of our scanner strategies — each hit links to the scanner.
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Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
NeutralCaterpillar verkauft keine KI — der Umsatz stammt aus Bau- und Bergbaumaschinen, Motoren, Turbinen und der Absatzfinanzierung (Cat Financial). In den sechs geprüften Filings (10-K 2025 und 2024, vier 10-Q bis zum 31.03.2026) erscheint Künstliche Intelligenz je Bericht höchstens ein einziges Mal — stets nur als externer Nachfrage-Treiber für die Stromerzeugungs-Sparte (Rechenzentrums-Ausbau für Cloud-Computing und generative KI füllt das Power-&-Energy-Auftragsbuch); das 10-Q zum 31.03.2025 nennt KI gar nicht. Es gibt weder eine KI-Umsatzquelle (Motoren und Turbinen sind keine KI-Produkte) noch dokumentierten operativen KI-Einsatz noch ein konkretes KI-Geschäftsrisiko in den Risk Factors — nach dem Kriterienkatalog dokumentierter Negativ-Befund, daher Neutral.
View the full file — quotes, sources, reviewed filings
„In Power & Energy, we anticipate growth in Power Generation for both reciprocating engines and turbines and turbine-related services in 2026, driven by increasing energy demand to support data center build-out related to cloud computing and generative Artificial Intelligence (AI)."
In Power & Energy erwarten wir für 2026 Wachstum in der Stromerzeugung sowohl bei Hubkolbenmotoren als auch bei Turbinen und turbinenbezogenen Dienstleistungen, getrieben von der steigenden Energienachfrage zur Unterstützung des Rechenzentrums-Ausbaus im Zusammenhang mit Cloud-Computing und generativer Künstlicher Intelligenz („KI“).
„Demand remains robust, driven by data center growth related to cloud computing and generative Artificial Intelligence (AI)."
Die Nachfrage bleibt robust, getrieben vom Rechenzentrums-Wachstum im Zusammenhang mit Cloud-Computing und generativer Künstlicher Intelligenz („KI“).
Filings Reviewed: 10-Q 2026-05-06 · 10-Q 2025-11-03 · 10-Q 2025-08-06 · 10-Q 2025-05-07 · 10-K 2026-02-13 · 10-K 2025-02-14
Rated on July 18, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 5.73 | 8.60 | 16,215 | -5.00 | 17.20 | 3,393 | 2,356 |
| 2025: Q1 | 4.20 | -27.00 | 14,249 | -9.80 | 14.10 | 1,289 | 371 |
| 2025: Q2 | 4.62 | -15.60 | 16,569 | -0.70 | 13.20 | 3,122 | 2,167 |
| 2025: Q3 | 4.86 | -3.90 | 17,638 | 9.50 | 13.00 | 3,737 | 4,589 |
| 2025: Q4 | 5.12 | -10.70 | 19,133 | 18.00 | 12.50 | 3,591 | 3,147 |
| 2026: Q1 | 5.47 | 30.30 | 17,415 | 22.20 | 14.60 | 1,870 | 1,547 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
32 consecutive years of higher annual dividends, a quarterly dividend since 1933, the June 10, 2026 increase of 8 percent to $1.63 per quarter — at a payout ratio of only about 32 percent of 2025 earnings and 29 percent of MP&E free cash flow (8-K dated 06/11/2026; 10-K 2025).
Firm backlog more than doubled from $30.0 billion (12/31/2024) via $51.2 billion (12/31/2025) to $62.7 billion (03/31/2026); the main driver per the 10-K is data center power demand for cloud and generative AI in the Power & Energy segment (2025 segment profit: $6.4 billion, up 12 percent).
In 2025, profit per share fell from $22.05 to $18.81 (minus 15 percent) and the operating margin from 20.2 to 16.5 percent — on tariffs (~$1.8 billion) and price concessions ($817 million); for 2026 the company expects about $2.6 billion of tariff impact, up to 20 percent more without mitigating actions (10-K 2025). Q1 2026 swung back up with revenue up 22 percent and $5.47 per share.
P/E near 50, price-to-sales near 7, price-to-book near 25, dividend yield near 0.6 percent (as of July 18, 2026) — the cyclical is priced like a growth stock; historically the P/E mostly sat at 10 to 20.
The industrial business generated $9.5 billion of free cash flow (2025), Piotroski 8 of 9, Altman-Z near 7 and a stated mid-A rating goal — but captive lender Cat Financial carries $41.6 of the $95.6 billion in total assets at a covenant leverage of 8.03:1 and interest coverage of 1.53:1 (10-Q as of 03/31/2026).
Buybacks of $5.2 billion (2025) plus $5.0 billion in the first quarter of 2026 alone, at monthly average prices of $627 to $700, halved the cash pile to $4.1 billion; the share count fell a good 2 percent within a year — a booster per share, and an expensive entry price if the cycle turns.
Caterpillar is the rare case where the label is accurate and can still mislead: the 32-year dividend streak is SEC-documented, conservatively funded at a payout ratio around 32 percent, and complemented by a $62.7 billion order book filled by the power hunger of AI data centers. Against that stand a 15 percent profit decline in 2025, an expected $2.6 billion tariff bill for 2026, a built-in captive lender levered 8 to 1 — and a valuation near 50 times earnings at a 0.6 percent dividend yield. Whoever invests here is not buying the dividend but the continuation of the Power & Energy boom at full price. Not investment advice.
- CAT made the research list as rank 1 of our in-house Dividend Aristocrats scanner (U.S. selection, as of July 18, 2026) — the opener of our series on the top 20 of that selection.
- Scanner metrics (P/E, P/S, P/B, Piotroski, Altman-Z, return on equity) use trailing twelve-month figures as of July 18, 2026; the high return on equity around 51 percent is partly a product of buybacks shrinking the equity base ($18.7 billion as of 03/31/2026).
- Price and market value figures (~$1,050, ~$500 billion) from the July 18, 2026 feed, sanity-checked against 460.6 million shares outstanding per the 10-Q as of March 31, 2026; analyses are evergreen, daily prices are not a buy argument.
About the Company
Caterpillar Inc. liefert Bau- und Bergbaumaschinen, Diesel- und Erdgasmotoren für den Geländeeinsatz, Industriegasturbinen und dieselelektrische Lokomotiven in den USA und international.
| Employees | 118,000 |
|---|---|
| Headquarters | Irving, TX |
| Website | caterpillar.com |
| IPO Date | 2. Jan 1962 |
| Next Earnings | 4. Aug 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Joseph E. Creed CPA | Chairman & CEO | 1976 |
| Christine M. Pambianchi | Chief Human Resources Officer | 1968 |
| Denise C. Johnson | Group President of Resource Industries | 1966 |
| Bob De Lange | Group President of Services, Distribution & Digital | 1970 |
| Andrew R. J. Bonfield | Advisor | 1962 |
| Kyle J. Epley | Chief Financial Officer | 1973 |
| William E. Schaupp | VP & Chief Accounting Officer | 1972 |
| Jaime Mineart | Senior VP & CTO | – |
| Jamie L. Engstrom | Senior VP & Chief Information Officer | 1978 |
| Alex Kapper | Vice President of Investor Relations | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.