Caterpillar earns more than expected, but its shares fall 10%

Caterpillar, the American heavy machinery giant, reported its results on Thursday, October 29, 2026. The numbers were good. The stock market's reaction was not.

The figures

Between July and September, Caterpillar:

- Sold $20.7 billion, 17% more than a year earlier. - Earned $7.20 per share (adjusted), compared with $4.95 a year earlier and the $7.08 analysts expected. - Built up a record order backlog of $78.1 billion, $6 billion more than three months earlier.

The boom in data centers for artificial intelligence has sent demand soaring for Caterpillar's generators and construction machines.

So why did it fall?

The shares opened down nearly 10%. The reason: Caterpillar did not change its sales forecast for 2026.

It still expects sales to grow this year somewhat more than 10%, without reaching 20%. Analysts estimate around 18%, and many investors were hoping the company would raise its forecast.

There is also concern that the order backlog is growing more slowly than at the start of the year.

Tariffs

Caterpillar kept its estimate of what tariffs will cost it this year at about $2.2 billion. In the quarter, its profit included $128 million from refunds of tariffs already paid.

A rough patch on the market

With this stumble, Caterpillar shares have fallen more than 20% since August, according to Reuters.