Caterpillar Inc. (NYSE:CAT) shares jumped 4.9% in early trading Wednesday after the industrial giant posted third-quarter earnings and revenue well above forecasts, fueled by resilient global demand and solid execution across its core businesses.
The company reported adjusted earnings of $4.95 per share, easily topping the $4.55 analyst consensus, while revenue climbed 10% year-over-year to $17.64 billion, beating expectations of $16.76 billion. That compares with $16.1 billion in the same period last year.
Growth was broad-based, supported by robust equipment demand from end users. The Energy & Transportation segment led with a 17% sales increase to $8.4 billion, while Construction Industries rose 7% to $6.8 billion, and Resource Industries advanced 2% to $3.1 billion.
“Solid performance from our team generated strong results this quarter, driven by resilient demand and focused execution across our three primary segments,” said Joe Creed, Caterpillar’s CEO. “Our team’s continued discipline in a dynamic environment, coupled with a growing backlog, positions us for sustained momentum and long-term profitable growth.”
Despite the top-line strength, operating profit margin slipped to 17.3%, compared with 19.5% a year earlier, as manufacturing costs rose by $686 million, largely due to the impact of higher tariffs and input inflation.
Caterpillar continued to reward shareholders, deploying $1.1 billion in cash during the quarter — $700 million for dividends and $400 million for share repurchases. The company ended the period with $7.5 billion in enterprise cash, reflecting its strong balance sheet and cash flow discipline.
The results reinforced Caterpillar’s reputation as a bellwether of global industrial demand, highlighting steady order activity and strong pricing power despite persistent cost pressures.