Caterpillar (NYSE:CAT) reported third-quarter 2026 earnings and revenue above analysts’ expectations on Thursday, supported by demand for construction equipment and power systems associated with artificial intelligence infrastructure development.
Despite the results, shares of the industrial equipment manufacturer declined more than 10% in US premarket trading, alongside broader declines in AI-related stocks.
The market movements followed earnings announcements from major technology companies that renewed investor attention on the financing and sustainability of spending on data centers and semiconductor infrastructure.
Revenue Increases 17% to $20.68 Billion
Caterpillar reported third-quarter revenue of $20.68 billion, representing a 17% increase compared with the previous year and slightly exceeding analysts’ consensus estimate of $20.65 billion.
Revenue from its machinery, power and energy operations increased 18% year over year to $19.65 billion, broadly matching Bloomberg consensus expectations.
Demand associated with the construction and expansion of AI-related infrastructure contributed to the company’s quarterly performance.
Adjusted Earnings Reach $7.20 Per Share
Caterpillar reported adjusted earnings per share of $7.20, exceeding analysts’ expectations of $7.10.
The company’s operating profit margin increased to 20.4%, compared with 17.3% in the corresponding quarter of the previous year, representing an improvement of 3.1 percentage points.
Chairman and Chief Executive Officer Joe Creed commented:
“Our third-quarter results reflect the durability of our end markets, with strong order rates and a record backlog.”
The company highlighted order activity and its outstanding order backlog as indicators of demand across its end markets.
AI Infrastructure Spending Remains in Focus
Caterpillar’s quarterly results reflected increased demand for equipment used in construction, power generation and other infrastructure projects.
However, the company’s share price declined alongside technology stocks exposed to artificial intelligence investment.
The broader market reaction followed financial results from several large technology companies, which prompted renewed scrutiny of the growing use of debt to finance data center construction and semiconductor spending.
Caterpillar shares fell more than 10% before Thursday’s market open despite reporting higher revenue, adjusted earnings and operating margins.
Caterpillar stock price
