Caterpillar reported third-quarter sales and revenues of $20.7B on Oct. 29, up 17% from $17.6B a year earlier, with an order backlog at a record $78.1B.
The backlog climbed $6B from the prior quarter and sits nearly double what it was a year ago, though the quarterly increase came in slower than earlier in 2026.
Profit reached $3.29B, or $7.13 a share, up from $2.3B and $4.88 a share a year earlier, according to FactSet data. Adjusted earnings of $7.20 a share topped the $7.06 analysts expected.
Operating profit margin was 20.4%, compared with 17.3% in the third quarter of 2025.
Data centers are powering the growth
The power and energy division, which builds large generator sets and turbines, posted sales of $8.78B, up 18%, with power generation sales alone up 30% year over year on data center demand.
Caterpillar is now taking orders for large reciprocating engines into 2029 and turbines into 2030, Chief Executive Joe Creed said on the analyst call.
Construction industries logged sales of $7.98B, also up 18%, helped by residential and non-residential activity across every region. The company recently committed $1B to a new facility in Sanford, North Carolina, focused on compact equipment.
Resource industries came in softer at $4.62B, up 15%, after mining shipment and commissioning delays plus lower locomotive deliveries. Sales to end users rose only 4%.
- Sales ($B)
- Profit ($B)
Bar chart. Amount ($B). Power & Energy: Sales ($B) $8.8, Profit ($B) $2.1. Construction: Sales ($B) $8, Profit ($B) $1.8. Resource: Sales ($B) $4.6, Profit ($B) $0.6.
Tariffs and an unchanged forecast
Caterpillar recognized $600M in tariff costs during the quarter, with construction industries accounting for about half of the total, Chief Financial Officer Kyle Epley said. Operating profit included $128M in benefits tied to International Emergency Economic Powers Act tariff recoveries.
Full-year tariff costs are still expected to land near $2.2B, excluding those refunds.
The company kept its full-year outlook at mid to high teens sales growth versus 2025, while analysts had been modeling roughly 18%.
Oppenheimer analyst Kristen Owen said the quality of the beat gives investors "a chink in the CAT armor" despite broad-based growth.
Caterpillar generated $4.4B in operating cash flow during the quarter and ended it with $7.9B in cash, after returning $1.2B through buybacks and $700M in dividends.
The pace of backlog growth is now the number investors track each quarter.
