Caterpillar Q3 Revenue Rises 17% to $20.68 Billion, Missing Estimates; Shares Fall 7.4%

Caterpillar Inc. reported third-quarter revenue of $20.68 billion, up 17% year over year but below analyst estimates, marking a slowdown from the 24% growth logged in the prior quarter. Shares fell 7.4% to $666.60 following Thursday's opening bell after dropping more than 10% premarket. The power-and-energy division, which supplies generators and turbines to data centers, drove much of the growth with sales up 18% to $8.78 billion. CEO Joe Creed said AI demand is fueling orders for large reciprocating engines into 2029 and turbines into 2030. Construction industries posted $7.98 billion in sales, also up 18%, while resource industries rose 15% to $4.62 billion. Backlog reached a record $78 billion as of Sept. 30, nearly double the prior year. Adjusted earnings came in at $7.20 per share, topping the $7.06 analysts expected, per FactSet. Net profit was $3.29 billion, or $7.13 a share, versus $2.3 billion, or $4.88 a share, a year earlier. Caterpillar maintained its full-year outlook for mid- to high-teens revenue growth and roughly $2.2 billion in tariff costs.