Results
($ in billions except profit per share)20262025
Sales and Revenues$20.5$16.6
Profit Per Share$7.77$4.62
Adjusted Profit Per Share$8.17$4.72
Second-quarter 2026 sales and revenues increased 24% to $20.5 billion
Second-quarter 2026 profit per share of $7.77; adjusted profit per share of $8.17
Capital return
Deployed $2.2 billion of cash for share repurchases and dividends in the second quarter
Results
IRVING, Texas, Aug. 4, 2026 – Caterpillar Inc. (NYSE: CAT) announced second-quarter 2026 results.
Management commentary
1“This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter,” said Caterpillar Chairman and CEO Joe Creed.
“This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers’ toughest challenges.
Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments.”
Results
4Sales and revenues for the second quarter of 2026 were $20.5 billion, a 24% increase compared with $16.6 billion in the second quarter of 2025.
The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million.
8Operating profit margin was 20.9% for the second quarter of 2026, compared with 17.3% for the second quarter of 2025.
5Adjusted operating profit margin was 21.9% for the second quarter of 2026, compared with 17.6% for the second quarter of 2025.
3Second-quarter 2026 profit per share was $7.77, compared with second-quarter 2025 profit per share of $4.62.
2Adjusted profit per share in the second quarter of 2026 was $8.17, compared with second-quarter 2025 adjusted profit per share of $4.72.
For the second quarter of 2026 and 2025, adjusted operating profit margin and adjusted profit per share excluded restructuring costs.
Capital return
For the second quarter of 2026, enterprise operating cash flow was $4.4 billion, and the company ended the second quarter with $6.7 billion of enterprise cash.
In the quarter, the company deployed $1.5 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends.
Results
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CONSOLIDATED RESULTS
Consolidated Sales and Revenues
6Total sales and revenues for the second quarter of 2026 were $20.543 billion, an increase of $3.974 billion, or 24%, compared with $16.569 billion in the second quarter of 2025.
The increase was primarily due to higher sales volume of $3.1 billion and favorable price realization of $595 million.
Higher sales volume was mainly driven by higher sales of equipment to end users.
Sales were higher across the three primary segments.
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Consolidated Operating Profit
Management commentary
The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2025 (at left) and the second quarter of 2026 (at right).
Caterpillar management utilizes these charts internally to visually communicate with the company’s board of directors and employe es.
The bar titled Other includes consolidating adjustments and Machinery, Power & Energy’s other operating (income) expenses.
Results
7Operating profit for the second quarter of 2026 was $4.295 billion, an increase of $1.435 billion, or 50%, compared with $2.860 billion in the second quarter of 2025.
The increase was primarily due to the profit impact of higher sales volume.
Operating profit in the second quarter of 2026 included $392 million of expected International Emergency Economic Power Act (IEEPA) tariff recoveries.
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Other Profit/Loss and Tax Items
Other income (expense) in the second quarter of 2026 was income of $398 million, compared with income of $84 million in the second quarter of 2025.
The change was primarily driven by favorable impacts from foreign currency, total return swap contracts and investment and interest income.
The effective tax rate for the second quarter of 2026 was 23.1% compared to 23.0% for the second quarter of 2025.
Excluding the discrete items discussed below, the global estimated annual effective tax rate was 23.0% for the second quarters of 2026 and 2025.
A discrete tax benefit of $26 million was recorded in the second quarter of 2026, compared with a $1 million benefit in the second quarter of 2025, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.
In addition, the global estimated annual effective tax rate in the second quarter of 2026 excluded the impact of second quarter losses of $139 million for the divestiture of certain non-U.S. entities with no related tax benefit.
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Power & Energy’s total sales were $8.238 billion in the second quarter of 2026, an increase of $1.201 billion, or 17%, compared with $7.037 billion in the second quarter of 2025.
The increase was primarily due to higher sales volume of $736 million, favorable price realization of $212 million and higher inter-segment sales of $200 million.
Power Generation – Sales increased in large reciprocating engines and in turbines and turbine-related services, primarily in data center applications.
Oil and Gas – Sales increased in reciprocating engines used in gas compression applications and in reciprocating engine aftermarket parts, partially offset by lower sales of reciprocating engines used in well servicing applications.
Sales also increased in turbines and turbine-related services.
Industrial – Sales increased primarily in North America and EAME.
Power & Energy’s segment profit was $2.027 billion in the second quarter of 2026, an increase of $473 million, or 30%, compared with $1.554 billion in the second quarter of 2025.
The increase was mainly due to the profit impact of higher sales volume of $457 million and favorable price realization of $212 million, partially offset by unfavorable manufacturing costs of $149 million.
Unfavorable manufacturing costs largely reflected increased period manufacturing costs.
Construction Industries’ total sales were $8.346 billion in the second quarter of 2026, an increase of $2.156 billion, or 35%, compared with $6.190 billion in the second quarter of 2025.
The increase in sales was mainly due to higher sales volume of $1.8 billion and favorable price realization of $309 million.
Higher sales volume was primarily driven by higher sales of equipment to end users.
In North America, sales increased primarily due to higher sales volume and favorable price realization.
Higher sales volume was mainly driven by higher sales of equipment to end users and by the impact from changes in dealer inventories.
Sales increased in Latin America mainly due to higher sales volume and favorable currency impacts primarily related to the Brazilian real.
Higher sales volume was mainly driven by higher sales of equipment to end users.
In EAME, sales increased primarily due to higher sales volume and favorable currency impacts mainly related to the euro.
Higher sales volume was primarily driven by higher sales of equipment to end users.
Sales increased in Asia/Pacific mainly due to higher sales volume.
Higher sales volume was primarily driven by higher sales of equipment to end users.
Construction Industries’ segment profit was $1.947 billion in the second quarter of 2026, an increase of $703 million, or 57%, compared with $1.244 billion in the second quarter of 2025.
The increase was primarily due to the profit impact of higher sales volume.
Resource Industries’ total sales were $4.648 billion in the second quarter of 2026, an increase of $762 million, or 20%, compared with $3.886 billion in the second quarter of 2025.
The increase was primarily due to higher sales volume.
Higher sales volume was primarily driven by higher sales of equipment to end users.
Mining, Heavy Construction and Quarry & Aggregates – Sales increased primarily due to higher sales of equipment to end users.
Rail – Sales increased due to higher international locomotive deliveries.
Sales also increased in rail services.
Resource Industries’ segment profit was $693 million in the second quarter of 2026, an increase of $130 million, or 23%, compared with $563 million in the second quarter of 2025.
The increase was mainly due to the profit impact of higher sales volume of $269 million, partially offset by unfavorable manufacturing costs of $158 million.
Unfavorable manufacturing costs primarily reflected increased period manufacturing costs.
Financial Products’ segment revenues were $1.145 billion in the second quarter of 2026, an increase of $103 million, or 10%, compared with $1.042 billion in the second quarter of 2025.
The increase was primarily due to a favorable impact from higher average earning assets across all regions.
Financial Products’ segment profit was $328 million in the second quarter of 2026, an increase of $80 million, or 32%, compared with $248 million in the second quarter of 2025.
The increase was mainly due to favorable impacts from higher average earning assets of $44 million, equity securities at Insurance Services of $22 million and higher margins at Insurance Services of $21 million, partially offset by higher provision for credit losses at Cat Financial of $22 million.
At the end of the second quarter of 2026, past dues at Cat Financial were 1.31%, compared with 1.62% at the end of the second quarter of 2025.
Write-offs, net of recoveries, were $20 million for the second quarter of 2026 compared with $18 million for the second quarter of 2025.
As of June 30, 2026, Cat Financial's allowance for credit losses totaled $294 million, or 0.84% of finance receivables, compared with $283 million, or 0.86% of finance receivables at March 31, 2026.
The allowance for credit losses at year-end 2025 was $284 million, or 0.86% of finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $518 million in the second quarter of 2026, a decrease of $84 million from the second quarter of 2025.
This decrease was due to timing differences, which included the majority of the expected IEEPA tariff recoveries recorded in the second quarter of 2026, and favorable impacts of segment reporting methodology differences.
This was partially offset by higher corporate costs, higher restructuring costs and an unfavorable change in fair value adjustments related to deferred compensation plans.
Corporate events
In the second quarter of 2026, restructuring costs increased primarily due to the divestiture of certain non-U.S. entities.
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