Caterpillar reported second-quarter revenue of $20.54 billion, exceeding analyst expectations of $19.3 billion by 6.4% and marking the first time in company history the heavy-equipment manufacturer has exceeded $20 billion in a single quarter, according to the company's earnings announcement.
Adjusted earnings per share came in at $8.17, beating the consensus estimate of $6.20 by 31.8% and representing 73% year-over-year growth from $4.72 in the prior-year quarter. Operating profit reached $4.3 billion against a $3.6 billion estimate, a 50% increase year-over-year.
The company's adjusted operating margin expanded to 21.9%, up 430 basis points from 17.6% in the second quarter of 2025. Construction Industries revenue grew 35% year-over-year to $8.35 billion, while Resource Industries grew 20% to $4.65 billion and Power & Energy grew 17% to $8.24 billion. Financial Products revenue increased 10% to $1.15 billion.
Caterpillar generated $4.4 billion in enterprise operating cash flow during the quarter. The company returned $2.2 billion to shareholders through $1.5 billion in share buybacks and $0.7 billion in dividends.
Chairman and CEO Jim Umpleby attributed the results to order strength across the business. "Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments," he said in the announcement. The company does not provide forward guidance.
Caterpillar's 24% revenue growth and 430-basis-point margin expansion outpace typical equipment-cycle recovery. All three primary operating segments delivered double-digit growth, with Construction Industries up 35%, Resource Industries up 20%, and Power & Energy up 17%.
The document to watch is Caterpillar's third-quarter 2026 earnings report, due in late October, to confirm whether order rates sustain at levels sufficient to support continued margin expansion into the final half of the year.
