Zacks Investment Research·1d ago
3 Stocks That Pay Dividends and Offer AI ExposureFor those interested in getting paid with some AI exposure, Broadcom (AVGO), Vertiv (VRT), and Caterpillar (CAT) all fit the criteria.
Caterpillar's record $20.5B revenue in 2026Q2, up 24% year-over-year, with gross margin expanding to 37.8%, demonstrates robust demand and operational leverage. However, debt-to-equity rising to 2.33 and cumulative FCF of $23.6B versus net income of $25.9B sug...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue surged 24% year-over-year to a record $20.5B in 2026Q2, with gross margin expanding 480 basis points to 37.8% and operating income up 48% to $4.3B.
Caterpillar has a significant backlog of $51.2 billion, representing a 71% year-over-year increase, providing multi-quarter revenue visibility.
The company has made strategic acquisitions, including a self-driving tractor startup, to enhance its technological capabilities in agriculture.
Demand in sectors like data centers could boost the Energy & Transportation segment, driving further growth.
Concerns exist about Caterpillar's valuation, with a P/E ratio significantly higher than its five-year average, suggesting potential overvaluation.
Net profit margins have slipped from 16.7% to 13.1% year-over-year, indicating recent financial softness.
The company's performance is sensitive to economic cycles, with a potential macroeconomic slowdown posing risks to demand.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 4, 2026 | $8.17+31.4% vs $6.22 | $20.5B+6.2% vs $19.3B |
Q2 2026 Apr 30, 2026 | $5.54+19.1% vs $4.65 | $17.4B+5.4% vs $16.5B |
Q1 2026 Jan 29, 2026 | $5.16+9.6% vs $4.71 | $19.1B+7.2% vs $17.9B |
Q4 2025 Oct 29, 2025 | $4.95+9.3% vs $4.53 | $17.6B+5.2% vs $16.8B |
For those interested in getting paid with some AI exposure, Broadcom (AVGO), Vertiv (VRT), and Caterpillar (CAT) all fit the criteria.
Of these three, Caterpillar's traditional business is the most exposed to higher interest rates. GE Vernova's strong backlog offers multiyear protection from any temporary economic weakness.
Caterpillar addresses two key AI bottlenecks: power and construction. The recent dip has resulted in a more attractive valuation.
Shares of Caterpillar Inc. (NYSE: CAT - Get Free Report) traded up 1.2% on Friday. The company traded as high as $809.49 and last traded at $808.39. 4,655,460 shares were traded during mid-day trading, an increase of 63% from the average daily volume of 2,854,511 shares. The stock had previously closed at $798.57. Key Stories
Benchmark CAT against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Caterpillar Inc. (CAT)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $808.01 | $372.2B | 42.91 | 4.29% | 13.13% | 43.48% | 0.73% | |
| $703.12 | $189.8B | 38.01 | -11.59% | 10.22% | 18.07% | — | |
| $13.67 | $16.95B | 33.34 | -8.78% | 1.71% | 3.97% | — | |
| $120.65 | $8.74B | 12.37 | -13.55% | 5.15% | 11.64% | — | |
| $113.86 | $59.92B | 25.25 | -15.5% | 9.18% | 12.73% | — | |
| $526.13 | $72.6B | 25.66 | -1.27% | 7.82% | 20.19% | — |
Caterpillar Inc. (CAT) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Caterpillar Inc. (CAT) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 4, 2026·SEC
Jun 11, 2026·SEC
Apr 30, 2026·SEC
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Caterpillar Inc. (CAT) stock FAQ — growth, dividends, profitability & financials explained
Caterpillar Inc. (CAT) reported $74.73B in revenue for fiscal year 2025. This represents a 352% increase from $16.52B in 1996.
Caterpillar Inc. (CAT) grew revenue by 4.3% over the past year. Growth has been modest.
Yes, Caterpillar Inc. (CAT) is profitable, generating $10.83B in net income for fiscal year 2025 (13.1% net margin).
Yes, Caterpillar Inc. (CAT) pays a dividend with a yield of 0.73%. This makes it attractive for income-focused investors.
Caterpillar Inc. (CAT) has a return on equity (ROE) of 43.5%. This is excellent, indicating efficient use of shareholder capital.
Caterpillar Inc. (CAT) generated $12.54B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
