Caterpillar (CAT) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly sales and revenues of $20.5 billion in Q2 2026, up 24% year-over-year, surpassing $20 billion for the first time, driven by higher sales volume and favorable price realization across all segments.

• Adjusted profit per share rose 73% to $8.17; operating profit margin improved to 20.9% (adjusted 21.9%).

• Order backlog reached a record $72.1 billion, up $9.4 billion sequentially and $34.6 billion year-over-year.

• Robust free cash flow of $5.1 billion in Q2; $2.2 billion returned to shareholders via dividends and buybacks.

• Strong order rates and broad-based demand across all primary segments.

Financial highlights

• Sales and revenues: $20.5 billion, up 24% year-over-year, with $3.974 billion growth driven by higher sales volume and favorable price realization.

• Adjusted operating profit: $4.5 billion, up 54%; margin improved by 430 basis points to 21.9%.

• Adjusted profit per share: $8.17; restructuring costs increased to $0.40 per share.

• MP&E free cash flow: $5.1 billion in Q2, a $2.8 billion increase year-over-year.

• Dividend increased by 8%, marking the sixth consecutive year of high single-digit growth.

Outlook and guidance

• Full-year 2026 sales and revenues growth expected in the mid to high teens, higher than previous guidance.

• Adjusted operating profit margin for the year projected near the bottom of the target range, excluding tariff recoveries.

• MP&E free cash flow expected in the top half of the $6–$15 billion annual target range.

• Capital expenditures projected at $3.5 billion for 2026.

• Estimated annual effective tax rate for 2026 is 23.0%, excluding discrete items.