Caterpillar, Inc. (CAT) Stock Price & How to Invest
Last updated October 2026
Short answer
You can invest in Caterpillar (CAT) by buying shares or fractional shares at any major broker, through an ETF that holds it (XLI, VOO, DIA, plus dividend funds), or as one holding in a thematic basket. Caterpillar is a high-quality cyclical: the world's largest maker of construction and mining equipment, plus engines and turbines (Solar Turbines) increasingly tied to data-center power. Its wide dealer-network moat, high-margin aftermarket parts and services, and Dividend Aristocrat record set it apart from rivals like Komatsu, Deere, and Cummins. The AI-power link has turned Caterpillar into a momentum stock: shares hit about $1,073 within the past year, then pulled back to about $739 by October 16, 2026, still up about 24% year to date and about 37% over the past year. Third-quarter results are due October 29, 2026.
CAT stock price
As of 2026-10-23, Caterpillar, Inc. (CAT) last closed at $687.00, up 31.4% over the past year. Over the past 52 weeks it has traded between $522.73 and $1,064.90.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Caterpillar, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does Caterpillar, Inc. (CAT) do?
Caterpillar is the world's largest manufacturer of construction and mining equipment, and a major maker of diesel and natural gas engines, industrial gas turbines, and locomotives. It sells bulldozers, excavators, loaders, dump trucks, and related heavy machinery used in construction, mining, quarrying, and infrastructure, plus power systems and engines for oil and gas, marine, power generation, and data-center backup. Caterpillar makes money by selling new equipment through a global dealer network and, increasingly importantly, by selling high-margin aftermarket parts, services, and financing through Cat Financial. Its three core segments are Construction Industries, Resource Industries (mining), and Energy and Transportation. The company is highly cyclical, tied to global construction activity, commodity prices, and infrastructure spending, but its large installed base generates recurring service revenue that smooths the cycle. Caterpillar is headquartered in Irving, Texas, and sells worldwide.
After a soft 2025 (revenue of about $67.6 billion, net income of about $8.9 billion, down from $10.8 billion in 2024), growth returned sharply in 2026. Second-quarter revenue was about $20.5 billion, up about 24% year over year, net income was about $3.6 billion, and adjusted EPS of $8.17 beat the roughly $6.20 consensus by a wide margin, the fourth straight quarterly beat. Over the last twelve months revenue reached about $74.7 billion with net income near $10.8 billion and an operating margin around 22%. The stock's run tracked the AI data-center power trade: it reached a 52-week high near $1,073 before falling back as investors rotated out of power-equipment names in October, closing near $739.16 on October 16, 2026 (market value about $340 billion). Caterpillar reports third-quarter results on October 29, 2026, with consensus around $7.03 of EPS on about $20.7 billion of revenue. In October it also announced a leadership transition in Resource Industries and up to $10 million for manufacturing workforce training in North Carolina.
What's driving Caterpillar, Inc. (CAT)?
1. Infrastructure and construction demand.
Global infrastructure investment, including US programs for roads, bridges, and grid upgrades, drives demand for Caterpillar's construction equipment. As the dominant brand with the broadest dealer support network, Caterpillar captures a large share of replacement and new fleet purchases when construction activity is strong, giving it leverage to multi-year public and private building cycles.
2. Energy and data-center power.
The Energy and Transportation segment supplies engines, gensets, and turbines (including Solar Turbines) used for prime and backup power. Surging electricity demand from data centers and AI has lifted orders for large reciprocating engines and turbines, turning this segment into a notable growth driver alongside traditional oil and gas and power generation markets. The data-center link is now central to how the market values Caterpillar: second-quarter 2026 revenue rose about 24% and analysts expect about $79.6 billion of revenue in 2026 and $88.7 billion in 2027, but the stock also falls with AI-power names when that trade cools, as it did in mid-October 2026.
3. High-margin aftermarket and services.
Caterpillar's enormous installed base of machines drives recurring revenue from parts, repairs, rebuilds, and service contracts. Management's services strategy aims to grow this stickier, higher-margin revenue, which is less cyclical than new equipment sales and supports more stable earnings and cash flow through downturns.
4. Capital returns and pricing power.
Caterpillar generates strong operating cash flow (about $13.6 billion over the last twelve months) and returns large amounts to shareholders through a consistently growing dividend (a Dividend Aristocrat, now $6.52 per share a year) and substantial buybacks. Brand strength and dealer support give it pricing power, which it has used to protect margins, and disciplined operating execution has structurally improved profitability versus past cycles. Free cash flow was lighter, about $5 billion over the trailing twelve months, as the company invests in capacity.
What are the risks to Caterpillar, Inc. (CAT)?
Caterpillar is deeply cyclical. A global construction slowdown, falling commodity prices that curb mining capital spending, or a recession would cut equipment demand and pressure margins and the stock. The business is exposed to China and emerging-market construction, currency swings, and trade and tariff policy. Mining capital expenditure is lumpy and tied to volatile metals and energy prices. Long-term, electrification and shifts away from diesel could challenge parts of the engine business. Premium valuations reached during cyclical peaks can compress quickly when orders soften, and dealer inventory swings can amplify the volatility of reported results. The stock now carries a richer multiple than in past cycles (about 32x trailing and 23x forward earnings in October 2026) because of data-center power expectations, so a slowdown in AI infrastructure spending could hit the shares even if construction and mining hold up; a rotation out of power names cut the stock about 17% in the three months to mid-October 2026. Debt including Cat Financial was about $45 billion.
What is the Caterpillar, Inc. (CAT) forecast?
26 analysts publish price targets on CAT, averaging $951.11 against a $730.76 price as of October 2026, or +30.2%. The published targets run from $575.00 to $1155.00, a moderate spread, and the ratings split 15 buy, 12 hold, 1 sell. Over the last six months there have been 7 raises and 4 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.
Read the full CAT forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.
Is CAT a buy or a sell?
We give no verdict on Caterpillar, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. Infrastructure and construction demand. Global infrastructure investment, including US programs for roads, bridges, and grid upgrades, drives demand for Caterpillar's construction equipment. The most optimistic published target, $1155.00, assumes this works close to its best case.
The case against. Caterpillar is deeply cyclical. The most pessimistic target, $575.00, is roughly what CAT is worth if this bites instead.
Read the full bull and bear case on CAT, including what would have to change to break either one. Walnut is not an investment adviser.
Has Caterpillar, Inc. (CAT) split its stock?
No. Caterpillar, Inc. (CAT) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.
How is Caterpillar, Inc. (CAT) valued? (approximate, October 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Caterpillar, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$74.7 billion; Q2 2026 ~$20.5 billion (up ~24% YoY)
- Operating margin: ~22% (TTM)
- Net income (TTM): ~$10.8 billion; FY2025 ~$8.9 billion
- EPS: Q2 2026 adjusted $8.17 vs ~$6.20 consensus; ~$23.23 GAAP TTM
- P/E: ~32x trailing, ~23x forward
- Dividend yield: ~0.9% ($6.52 annualized), payout ratio ~26%; Dividend Aristocrat
- Market cap: ~$340 billion at ~$739 per share
- Segments: Construction, Resource Industries (mining), Energy and Transportation
Caterpillar trades as a high-quality cyclical with a growth premium layered on: at about 32x trailing and 23x forward earnings in mid-October 2026, investors are paying for data-center power demand on top of best-in-class margins, a wide dealer moat, and growing services revenue. Analysts rate it a buy with an average target near $951, well above the roughly $739 price after the autumn pullback. The valuation tends to expand on infrastructure and data-center power optimism and contract when global growth or AI-spending signals soften, and the October 29, 2026 report is the next test.
Which ETFs hold Caterpillar, Inc. (CAT)?
If you want CAT exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.
| ETF | Name | % in CAT | Expense ratio | |
|---|---|---|---|---|
| DIVO | Amplify CWP Enhanced Dividend Income ETF | 5.71% | 0.56% | |
| UDOW | ProShares UltraPro Dow30 | 5.34% | 0.95% | |
| VYM | Vanguard High Dividend Yield ETF | 1.46% | 0.06% | |
| XLI | State Street Industrial Select Sector SPDR ETF | 7.01% | 0.08% | |
| DIA | State Street SPDR Dow Jones Industrial Average ETF Trust | 9.44% | 0.16% | |
| IFRA | iShares U.S. Infrastructure ETF | 4.27% | 0.30% | |
| DUHP | Dimensional US High Profitability ETF | 2.2% | 0.20% | |
| VIS | Vanguard Industrials Index Fund ETF Shares | 5.3% | 0.09% | |
| THRO | iShares U.S. Thematic Rotation Active ETF | 2.2% | 0.57% |
What themes does Caterpillar, Inc. (CAT) fit?
These are the investment theses CAT naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.
Who competes with Caterpillar, Inc. (CAT)?
Construction equipment
Competes with Komatsu, Deere (in construction), Volvo Construction Equipment, Hitachi Construction Machinery, CNH, and Liebherr in earthmoving and building machinery.
Mining equipment
Competes with Komatsu, Epiroc, Sandvik, and Liebherr in large mining trucks, shovels, and underground equipment.
Engines and power systems
In engines, turbines, and gensets, competes with Cummins, Rolls-Royce (mtu), GE Vernova, and others across power generation, marine, and industrial applications.
What stocks are similar to Caterpillar, Inc. (CAT)?
Other names that sit close to CAT: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in Caterpillar, Inc. (CAT)
There are three common ways to get CAT exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (DIVO, UDOW, VYM), which spreads the position across many companies. Or build it into a focused thematic portfolio, so CAT sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where CAT fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Caterpillar, Inc. (CAT)
Caterpillar (CAT) is a best-in-class heavy-equipment franchise whose recurring services revenue and pricing power smooth, but do not erase, deep cyclicality. In a portfolio it behaves as a dividend-growth industrial anchor levered to infrastructure, mining capex, and increasingly to data-center power demand, which has pushed revenue growth to about 24% in the latest quarter and the valuation to about 32x trailing earnings; earnings and the multiple can contract quickly when global construction, commodity, or AI-spending signals soften, as the roughly 17% pullback over the three months to mid-October 2026 showed.
More on Caterpillar, Inc. (CAT)
Whether CAT is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is CAT a buy or a sell?, and where the stock could go from here in the CAT stock forecast.
For income investors, whether CAT pays a dividend and how the payout looks is covered in does CAT pay a dividend? And to weigh CAT against a peer, read the full side-by-side comparisons: CAT vs JPM and CAT vs UNH.
Wondering how CAT fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Caterpillar, Inc. with AI
Connect the broker you already use and ask Walnut's AI how CAT fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is CAT's ticker symbol?
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CAT, listed on the New York Stock Exchange. The company is Caterpillar Inc., headquartered in Irving, Texas. It trades during US market hours and is a component of the Dow Jones Industrial Average, available at every major US brokerage.
What does Caterpillar do?
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Caterpillar manufactures construction and mining equipment, diesel and gas engines, turbines, and locomotives. It sells heavy machinery and power systems through a global dealer network and earns substantial recurring revenue from aftermarket parts, services, and financing through Cat Financial.
Who are Caterpillar's main competitors?
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In construction equipment, Komatsu, Deere, Volvo, and Hitachi. In mining, Komatsu, Epiroc, and Sandvik. In engines and power systems, Cummins, Rolls-Royce, and GE Vernova.
Is Caterpillar a cyclical stock?
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Yes, strongly. Caterpillar's equipment sales track construction activity, commodity prices, and infrastructure spending, all of which move with the economic cycle. Its large aftermarket and services revenue is more stable and helps smooth, but does not eliminate, the cyclicality.
Does Caterpillar benefit from data centers?
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Yes, increasingly. Caterpillar's Energy and Transportation segment supplies large engines, generator sets, and turbines used for data-center prime and backup power. The AI-driven surge in electricity demand has lifted orders for these power products, making it a notable growth tailwind. That tailwind helped lift second-quarter 2026 revenue about 24%, though it also makes the stock sensitive to swings in the AI power trade.
Is Caterpillar a Dividend Aristocrat?
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Yes. Caterpillar has increased its dividend for decades, qualifying it as a Dividend Aristocrat, and now pays $6.52 per share a year. Because the share price has risen faster than the payout, the yield is under 1% (about 0.9% in October 2026), with a payout ratio near 26%. It also returns significant cash through share buybacks.
Is CAT a Industrials stock?
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Yes. Under GICS classification, Caterpillar is in the Industrials sector, within construction and farm machinery and heavy trucks. It is held across industrial ETFs and broad market index funds.
Which ETFs hold CAT?
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Broad funds like VOO, VTI, SPY, and DIA (the Dow ETF) hold CAT. Industrial sector ETFs such as XLI hold it at a higher weight, and many dividend ETFs include it given its long dividend-growth record.
Is CAT in the S&P 500 and Dow?
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Yes to both. Caterpillar is a long-standing S&P 500 constituent and a component of the Dow Jones Industrial Average, making it widely held across index funds tracking either benchmark.
What is Caterpillar's market cap?
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Roughly $340 billion as of October 16, 2026, at a share price near $739, placing it among the largest US industrial companies. That is down from a peak above $480 billion implied by the 52-week high near $1,073, but still far above the levels of early 2026. The market cap reflects its dominant position in heavy equipment, strong margins, and growth in power systems, balanced by cyclical earnings.
Which thematic baskets typically include CAT?
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Caterpillar commonly appears in infrastructure, industrials, dividend-growth, and reshoring or construction-spending baskets. It is also used in data-center power and energy-infrastructure themes given its engine and turbine business.
Is CAT a good stock to buy?
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Descriptive, not a recommendation. The bull case is a dominant heavy-equipment franchise with a wide dealer moat, growing high-margin services, revenue growth of about 24% in the latest quarter, a long dividend-growth record, and a tailwind from infrastructure and data-center power demand. The bear case is deep cyclicality tied to construction, mining, and commodity prices, a valuation of about 32x trailing earnings that leans on AI power demand, and exposure to China, tariffs, and long-term diesel transition risk. Whether it fits any portfolio depends on individual goals and risk tolerance. Walnut is informational, not investment advice.
How did Caterpillar do in its latest quarter?
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In the second quarter of 2026 (ended June 30), Caterpillar reported revenue of about $20.5 billion, up roughly 24% year over year, and net income of about $3.6 billion. Adjusted EPS of $8.17 beat the roughly $6.20 consensus. Third-quarter results are scheduled for October 29, 2026, with analysts expecting about $7.03 of EPS on roughly $20.7 billion of revenue.
How has CAT stock performed in 2026?
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As of the October 16, 2026 close near $739.16, Caterpillar shares were up about 24% year to date and about 37% over the past year, but down about 17% over the prior three months and well below the 52-week high near $1,073. The pullback came as investors rotated out of AI and data-center power stocks. Past performance does not predict future returns.
Guides that feature CAT
CAT is one of the names covered in these guides. Each one puts the stock next to its peers so you can see where it fits rather than judging it alone.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Caterpillar, Inc.'s investor relations page or your broker before making investment decisions.