CAT Q3 deep dive: capacity expansion and backlog growth shape outlook amid market caution

What happened: Caterpillar (NYSE:CAT) reported Q3 2026 results that beat revenue expectations, with sales up 17.3% year on year, yet the market reaction was sharply negative. Key numbers: Revenue $20.68 billion vs $20.37 billion estimated (1.5% beat). Adjusted EPS $7.20 vs $7.03 estimated (2.4% beat). Operating margin 20.4%, up from 17.3% a year earlier. Market capitalization $297.6 billion. Why it matters: Management cited capacity expansion as the top pacing factor for growth in Power and Energy, and cautioned that higher manufacturing costs and tariffs may weigh on margins near term.

Caterpillar (NYSE:CAT) reported Q3 2026 results that beat revenue expectations, with sales up 17.3% year on year, yet the market reaction was sharply negative.

Management cited capacity expansion as the top pacing factor for growth in Power and Energy, and cautioned that higher manufacturing costs and tariffs may weigh on margins near term.