Caterpillar Profit Per Share Jumps 46% as Data Center Power Demand Lifts Sales 17%

Caterpillar said Thursday its third-quarter profit per share jumped 46% to $7.13 as sales rose 17% to $20.7 billion, powered by surging demand for power generation equipment tied to data centers and higher construction equipment sales.

Adjusted profit per share, which excludes restructuring costs, rose to $7.20 from $4.95 a year earlier, according to the earnings release the company filed with an 8-K on Thursday. Sales and revenues climbed to $20.682 billion from $17.638 billion, driven by $2.2 billion of higher sales volume and $663 million of favorable price realization.

"Our third-quarter results reflect the durability of our end markets, with strong order rates and a record backlog," Chairman and CEO Joe Creed said in the release.

Margins widen sharply

Operating profit rose 38% to $4.214 billion from $3.052 billion, mainly on higher sales volume. The total included $128 million of recoveries of tariffs imposed under the International Emergency Economic Powers Act.

Operating profit margin expanded to 20.4% from 17.3%, and adjusted operating margin rose to 20.6% from 17.5%. The effective tax rate fell to 22.9% from 26.7%.

Power & Energy leads the way

Power & Energy, now Caterpillar's largest segment by sales, grew total sales 18% to $8.784 billion. Power Generation sales jumped 30% to $3.421 billion, which the company said came mainly from turbines and turbine-related services and large reciprocating engines, "primarily in data center applications." Oil and Gas sales rose 13% to $2.236 billion.

Segment profit rose 31% to $2.143 billion, and segment margin widened 2.5 points to 24.4%.

Construction Industries also grew sales 18%, to $7.983 billion, as North America rose 23% and Latin America 26%. Segment profit climbed 33% to $1.831 billion, though the company said higher manufacturing costs, including freight, cost it $252 million.

Resource Industries sales rose 15% to $4.615 billion, with mining, heavy construction and quarry and aggregates sales up 22% while rail sales fell 5%. Segment profit increased 14% to $622 million.

By the numbers

• Sales and revenues: $20.7 billion, up 17%
• Profit per share: $7.13 vs. $4.88
• Adjusted profit per share: $7.20 vs. $4.95
• Operating profit: $4.214 billion, up 38%
• North America sales and revenues: $12.017 billion, up 24%

Cash returned to shareholders

Caterpillar generated $4.4 billion of enterprise operating cash flow in the quarter and ended September with $7.9 billion of enterprise cash. It deployed $2.0 billion for shareholders, including $1.2 billion of share repurchases and $0.7 billion of dividends.

The release did not include an updated full-year financial outlook. Creed said the team's execution in a dynamic environment is "positioning us for a strong year."

Sources

1. Caterpillar Form 8-K with third-quarter 2026 earnings release (Exhibits 99.1 and 99.2), filed Oct. 29, 2026 (accession 0000018230-26-000052)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.