Sales power ahead at Caterpillar, beating forecasts
By Abigail Townsend
Date: Thursday 29 Jan 2026
(Sharecast News) - Caterpillar posted an above-forecast surge in quarterly sales on Thursday, on bumper demand for its industrial equipment and heavy plant machinery.
Sales and revenues at the US firm - the world's largest manufacturer of construction and mining equipment - came in at a record $19.1bn in the fourth quarter, an 18% jump year-on-year.
Wall Street had been expecting sales and revenues closer to $17.9bn.
Driving the growth was particularly strong demand across its power and energy division, where revenues soared 23% to $9.4bn. Caterpillar said it had seen increased sales of large reciprocating engines, primarily for data centre applications, along with turbines and turbine-related services.
However, group operating profits fell 9% to $2.7bn, following a hike in tariff-related costs.
The Texas-based firm warned tariffs would continue to weigh heavily in the current year, likely costing it $2.6bn, including around $800m in the first quarter.
Industrial companies such as Caterpillar have been some of the hardest hit by Donald Trump's swingeing tariff regime.
However, investors remained bullish, and by 1400 GMT the stock had put on 3% in pre-market trading.
Joe Creed, chief executive, said: "These results demonstrate the strength of our end markets and our disciplined execution.
"With a record backlog, we enter the new year with strong momentum and a continued focus on delivering long-term value for our customers and shareholders."
Full-year sales and revenues came in at $67.6bn, up from $64.8bn a year previously, while earnings per share fell to $18.81 from $22.05.
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