Caterpillar Inc. (NYSE: CAT) traded at $595.04 as of October 29, 2025, up 13.46% after delivering impressive third-quarter results.
Caterpillar Inc., CAT
The company exceeded Wall Street expectations for both earnings and revenue, signaling resilient global demand for its heavy machinery and energy systems.
Caterpillar reported third-quarter earnings per share of $4.95, topping the $4.52 consensus estimate by $0.43. Revenue came in at $17.64 billion, up 10% from the same period last year and $870 million above expectations. The results were driven by strength in Energy & Transportation, which benefited from surging demand in power generation and industrial applications linked to AI-driven infrastructure expansion.
Revenue from the Energy & Transportation segment climbed 17% to $8.4 billion, while Construction Industries rose 7% to $6.76 billion and Resource Industries grew 2% to $3.1 billion. Operating cash flow totaled $3.7 billion, and Caterpillar ended the quarter with $7.5 billion in cash, providing flexibility for capital investments and shareholder returns.
While top-line growth was strong, margins came under pressure. Operating margin slipped to 17.3% from 19.5% a year ago, reflecting higher manufacturing and administrative costs. Operating income fell 3% to $3.05 billion, with management citing unfavorable cost trends and elevated tariffs as ongoing headwinds.
The company now expects annual tariff costs to range between $1.6 billion and $1.75 billion, in line with prior estimates. Despite these pressures, management maintained a confident outlook, emphasizing strong cash generation and a growing backlog that supports continued profitability.
CEO Joe Creed said the team delivered “strong results this quarter, driven by resilient demand and focused execution across our three primary segments.” He emphasized that a “growing backlog positions us for sustained momentum and long-term profitable growth.”
The company’s Energy & Transportation segment continues to be a major growth driver, fueled by global demand for AI-related energy projects and industrial power systems. Construction Industries benefited from North American strength, while sales in Europe, Africa, and the Middle East increased due to favorable currency impacts.
Caterpillar’s strong third-quarter performance added to a stellar year for investors. As of October 29, 2025, CAT stock had gained 66.65% year-to-date and 56% over the past year, far outpacing the S&P 500’s 17.53% YTD return. Over the past five years, CAT has delivered a 323.44% total return, underscoring its position as a bellwether for global industrial growth.
Caterpillar’s record Q3 2025 earnings highlight strong operational execution and sustained demand across its core markets, even amid rising costs and margin compression.
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