• Earnings per share of $5.16, beating the estimated $4.67.
• Record-breaking full-year sales and revenues of $67.6 billion.
• Strong demand for power and energy solutions, notably for data centers, driving growth.

Caterpillar Inc. (NYSE: CAT) is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates globally, serving industries such as construction, mining, and energy. Caterpillar's main competitors include companies like Komatsu and John Deere. On January 29, 2026, Caterpillar reported impressive financial results, with earnings per share of $5.16, surpassing the estimated $4.67. The company also achieved a revenue of approximately $19.13 billion, exceeding the anticipated $17.76 billion.

Caterpillar's strong performance in the fourth quarter was driven by increased sales across its three main segments. The demand for power and energy solutions, particularly for data centers, played a significant role in this growth. The company reported fourth-quarter sales of $19.13 billion, an 18% increase from $16.2 billion in the same quarter of 2024. This surge in sales contributed to Caterpillar's record-breaking full-year sales and revenues of $67.6 billion, the highest in its history.

Despite the positive financial results, Caterpillar faces challenges in 2026, including a $2.6 billion impact from tariffs. However, the company remains optimistic due to the continued strong demand for its power-generation equipment, driven by the rapid expansion of data centers. Caterpillar's fourth-quarter profit per share was $5.12, with an adjusted profit per share of $5.16. For the entire year, the profit per share was $18.81, while the adjusted profit per share was $19.06.

Caterpillar's financial metrics provide insight into its market valuation and financial health. The company's price-to-earnings (P/E) ratio is approximately 32.54, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 4.66, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 5.19, showing the company's total valuation relative to its sales.

Caterpillar ended 2025 with a strong enterprise operating cash flow of $11.7 billion and $10 billion in enterprise cash. The company deployed $7.9 billion for share repurchases and dividends throughout the year. CEO Joe Creed emphasized the strength of Caterpillar's end markets and disciplined execution, highlighting the company's record backlog and strong momentum as it enters the new year. Caterpillar's debt-to-equity ratio is approximately 2.01, indicating its financial leverage, while the current ratio is around 1.38, suggesting its ability to cover short-term liabilities with short-term assets.