Caterpillar Inc_ equipment-by pabradyphoto via iStock
Caterpillar (CAT) turned in a big quarter. Second‑quarter 2026 sales and revenues came in at $20.5 billion, up 24% from a year earlier and the first time the company has ever topped $20 billion in a single quarter.
Higher volumes and better pricing across its businesses helped push the stock higher after the release. Management also raised its full‑year 2026 sales growth outlook to the mid‑to‑high teens, pointing to solid demand and rising throughput.
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The key driver here is a record order backlog that has climbed to $72 billion, up 92% from the second quarter of 2025 and $9 billion higher than the prior quarter. All three major segments added to that backlog, and a large chunk is expected to ship over the next year.
With orders still coming in and capacity expanding, how much further can Caterpillar’s elevated backlog propel growth and returns from here?
Financials That Support The Thesis
Caterpillar is a global maker of heavy equipment and power solutions, selling the machines, engines and tech that keep construction sites, mines, energy projects and more recently data centers running. Over the past 52 weeks, the stock is up 101.8%, and it’s gained 50.7% year-to-date (YTD).
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Even after that move, Caterpillar trades at a forward price-to-earnings ratio of 35.25 times versus 21.49 times for the broader industrials sector, showing investors are paying up for its growth.
The stock offers an annual dividend yield of 0.71% with a forward payout ratio of 28.93%; the latest dividend was $1.630 per share on July 20, and the company has raised its dividend for 32 straight years, paying quarterly.
In the second‑quarter of 2026, sales and revenues rose 24% year-over-year (YOY) to $20.5 billion from $16.6 billion, profit per share increased to $7.77 from $4.62, and adjusted profit per share increased to $8.17 from $4.72. Operating profit moved up…
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