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Caterpillar Posts Record 2025 Sales Despite Margin Compression

Story Highlights
  • Caterpillar posted record 2025 sales and revenues, led by higher equipment demand.
  • Margins and EPS declined versus 2024, but cash flow stayed strong and shareholder returns were high.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Caterpillar Posts Record 2025 Sales Despite Margin Compression

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Caterpillar ( (CAT) ) has issued an update.

On January 29, 2026, Caterpillar reported record fourth-quarter and full-year 2025 results, with sales and revenues climbing 18% year-on-year in the fourth quarter to $19.1 billion and 4% for the full year to an all-time high of $67.6 billion, driven primarily by higher equipment sales to end users across its core segments and supported by largely stable dealer inventories. Despite the topline strength and a record backlog, profitability compressed versus 2024, as operating profit margin fell to 13.9% in the quarter and 16.5% for the year, while reported profit per share declined to $5.12 in the fourth quarter and $18.81 for 2025, though adjusted earnings held more stable; the company still generated robust $11.7 billion in operating cash flow and returned $7.9 billion to shareholders through buybacks and dividends, underscoring its confidence in ongoing demand and long-term value creation for investors and customers.

The most recent analyst rating on (CAT) stock is a Buy with a $719.00 price target. To see the full list of analyst forecasts on Caterpillar stock, see the CAT Stock Forecast page.

Spark’s Take on CAT Stock

According to Spark, TipRanks’ AI Analyst, CAT is a Outperform.

Caterpillar’s strong financial performance and positive earnings call are the most significant factors driving the stock score. While technical indicators show bullish momentum, potential overvaluation and high debt levels are notable risks. The company’s strategic focus on growth in key segments and mitigating tariff impacts supports a positive outlook.

To see Spark’s full report on CAT stock, click here.

More about Caterpillar

Caterpillar Inc., based in Irving, Texas, is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives, serving construction, resource, energy and transportation end markets worldwide.

Average Trading Volume: 2,461,020

Technical Sentiment Signal: Buy

Current Market Cap: $299B

For detailed information about CAT stock, go to TipRanks’ Stock Analysis page.

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