Caterpillar (CAT) stock rallied on Wednesday after the construction equipment company announced its Q3 2025 earnings report. The report began with adjusted earnings per share of $4.95, which beat Wall Street’s adjusted EPS estimate of $4.53 for the quarter. However, the company’s adjusted EPS was down 5% year-over-year from $5.17.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Caterpillar reported revenue of $17.6 billion during the quarter, which came in above analysts’ estimate of $16.77 billion. The company’s revenue also increased 10% year-over-year from $16.1 billion. This was mainly due to higher sales volume driven by growth in sales of equipment to end users. The higher sales volume is likely tied to the AI boom, as more construction companies are buying equipment to build AI data centers and the facilities to power them.
Caterpillar stock was up 6.11% in pre-market trading on Wednesday, following a slight dip yesterday. The shares have rallied 46.76% year-to-date and 38.3% over the past 12 months. Trading this morning saw some 104,000 shares exchanged, compared to a three-month daily average of about 3.15 million units.
Caterpillar Guidance
Caterpillar didn’t provide a formal guidance update in its most recent earnings report. Even so, CEO Joe Creed spoke about the company’s future. He said, “Our team’s continued discipline in a dynamic environment, coupled with a growing backlog, positions us for sustained momentum and long-term profitable growth.”
Is Caterpillar Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Caterpillar is Moderate Buy, based on nine Buy, six Hold, and a single Sell rating over the past three months. With that comes an average CAT stock price target of $517, representing a potential 1.42% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
