Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Caterpillar (CAT) posted FY2025 revenue of $67.6B (+4.3% YoY) but saw operating income fall 14.7% to $11.2B as cost of revenue surged 11.3%, compressing operating margin by ~370 basis points to 16.5%.
Revenue
$67.59B
+4.29% YoY
EPS (Diluted)
$18.81
-14.69% YoY
Operating Income
$11.15B
-14.70% YoY
Source: SEC XBRL
Caterpillar (CAT) reported FY2025 revenue of $67.59B, up 4.3% year over year. Operating margin was 16.5%, down 3.7 points from 20.2% a year earlier. Operating cash flow was $11.74B, down 2.5% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 8.17 | 6.26 | Beat +30.5% |
| Mar 2026 | 5.54 | 4.66 | Beat +18.8% |
| Dec 2025This filing | 5.16 | 4.72 | Beat +9.3% |
| Sep 2025 | 4.95 | 4.57 | Beat +8.3% |
Reported EPS of $5.16 versus the $4.72 analyst consensus — a +9.3% beat for Dec 2025.
Compiled by AI from this SEC filing
CAT grew total revenue 4.3% YoY to $67.6B in FY2025 (from $64.8B in FY2024), indicating continued demand across its construction, mining, and energy segments despite a challenging macro environment.
Source: 10-K Income Statement
Cost of revenue jumped 11.3% YoY to $44.8B, far outpacing revenue growth of 4.3%, which drove gross profit lower and compressed operating margin from 20.2% to 16.5% — a decline of approximately 370 basis points.
Source: 10-K Income Statement
Operating income fell 14.7% to $11.2B and diluted EPS dropped 14.7% to $18.81 (from $22.05), reflecting the combined impact of higher input costs and elevated SG&A expenses of $7.0B (+4.8% YoY).
Source: 10-K Income Statement
Cash and equivalents surged 44.9% to $10.0B, while operating cash flow remained robust at $11.7B. However, investing cash outflows nearly doubled to -$4.7B, suggesting significant capital deployment in FY2025.
Source: 10-K Cash Flow Statement
Share repurchases declined 32.6% to $5.2B (from $7.7B), and long-term debt rose 12.2% to $30.7B, reflecting a shift in capital allocation priorities and increased balance sheet leverage.
Source: 10-K Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Cost of revenue grew 11.3% YoY versus revenue growth of only 4.3%, indicating that input cost inflation — including materials, manufacturing, and supply chain costs — is significantly outpacing pricing power. If this trend continues, operating margins could compress further from the already-reduced 16.5% level.
Source: 10-K Income Statement
Long-term debt increased 12.2% to $30.7B in FY2025, while total liabilities grew 13.2% to $77.3B. The debt-to-asset ratio has increased, and in a rising or sustained high interest rate environment, debt servicing costs could weigh on future profitability.
Source: 10-K Balance Sheet
Diluted EPS fell 14.7% to $18.81 and share buybacks were cut by 32.6% to $5.2B, which may disappoint income-oriented investors and signal management caution about near-term cash generation capacity.
Source: 10-K Income Statement & Cash Flow Statement
Investing cash outflows nearly doubled YoY to -$4.7B (from -$2.5B), suggesting heavy capital commitments. If these investments do not generate expected returns, free cash flow could be pressured in future periods.
Source: 10-K Cash Flow Statement
The current ratio stands at 1.44x, which is adequate but not robust given current liabilities of $36.6B. Any deterioration in receivables or inventory turnover could tighten near-term liquidity, especially with elevated debt levels.
Source: 10-K Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 67.59 $B | 64.81 $B | +4.29% |
Cost of Revenue $B | 44.75 $B | 40.20 $B | +11.33% |
Operating Income $B | 11.15 $B | 13.07 $B | -14.70% |
EPS (Basic) $ | 18.90 $ | 22.17 $ | -14.75% |
EPS (Diluted) $ | 18.81 $ | 22.05 $ | -14.69% |
R&D Expense $B | 2.15 $B | 2.11 $B | +1.95% |
SG&A Expense $B | 6.99 $B | 6.67 $B | +4.77% |
Answers draw on this SEC filing and the data on this page
Caterpillar's Q2 FY2026 results surged on broad demand strength and a one-time tariff recovery, with EPS jumping 68% to $7.77, though rising dealer inventories and ongoing tariff costs present headwinds.
CAT delivered strong Q1 FY2026 results with revenue surging 22.2% YoY to $17.4B and EPS jumping 30.3% to $5.50, driven by robust demand across its business segments, though operating margin edged slightly lower and aggressive share buybacks of $5.0B highlight continued capital returns to shareholders.
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