Caterpillar beats quarterly estimates as power sales surge while warning of heavy tariff costs

Caterpillar Inc. CATreported its fourth-quarter results on January 29, 2026, for the period ended December 31, showing adjusted earnings per share of $5.16, up from $5.14 a year earlier. Total revenue for the quarter reached $19.1 billion, an increase from $16.2 billion in the previous year’s final quarter. These figures surpassed the expectations of analysts polled by LSEG, who had on average predicted a quarterly profit of $4.68 per share on revenue of $17.86 billion. Following the report, shares of Caterpillar Inc.were up about 4.4% in early trade, continuing a trend that saw the stock gain about 60% over the last year, roughly four times the gains of the S&P 500 in that same period.

The robust performance was largely driven by the power and energy segment, where quarterly sales jumped more than 20%. This growth has allowed the unit to become the largest business by sales at Caterpillar Inc., surpassing its traditional construction segment. The company, led by executives including Joe Creed joe creed, noted that orders are rising for prime power systems as data-center customers look for additional on-site power. This surge is primarily attributed to customers seeking continuous electricity to support growing demand for artificial intelligence and data-center infrastructure.