Revenue growth exhibited extreme volatility, swinging from a 9.8% contraction in 2025Q1 to a 22.2% expansion by 2026Q1, while maintaining a robust gross margin of 35.1%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 70.75B | 67.59B | 64.81B | 67.06B | 59.43B | 50.97B | 41.75B | 53.8B | 54.72B | 45.46B | 38.54B | 47.01B | 55.18B | 55.66B | 65.88B | 60.14B | 42.59B | 32.4B | 51.32B | 44.96B | 41.52B | 36.34B | 30.31B | 22.81B | 20.15B | 20.45B | 20.18B | 19.7B | 20.98B | 18.93B | 16.52B |
| Revenue Growth % | 11.85% | 4.29% | -3.36% | 12.84% | 16.59% | 22.09% | -22.4% | -1.68% | 20.37% | 17.97% | -18.03% | -14.81% | -0.85% | -15.51% | 9.54% | 41.21% | 31.46% | -36.88% | 14.16% | 8.29% | 14.25% | 19.91% | 32.88% | 13.17% | -1.46% | 1.36% | 2.4% | -6.08% | 10.84% | 14.54% | 2.8% |
| Cost of Goods Sold | 47.74B | 45.73B | 41.48B | 43.8B | 41.91B | 35.97B | 29.67B | 37.38B | 37.72B | 31.91B | 28.64B | 34.13B | 41.34B | 41.45B | 47.85B | 44.4B | 31.28B | 23.89B | 38.41B | 32.63B | 29.55B | 26.56B | 23.24B | 17B | 15.15B | 15.22B | 14.5B | 13.54B | 14.17B | 12.64B | 11.14B |
| COGS % of Revenue | - | 67.66% | 64.01% | 65.31% | 70.53% | 70.57% | 71.07% | 69.49% | 68.93% | 70.18% | 74.32% | 72.61% | 74.92% | 74.48% | 72.64% | 73.84% | 73.45% | 73.73% | 74.85% | 72.57% | 71.17% | 73.08% | 76.7% | 74.53% | 75.16% | 74.42% | 71.86% | 68.7% | 67.53% | 66.77% | 67.4% |
| Gross Profit | 23.01B | 21.86B | 23.32B | 23.26B | 17.51B | 15B | 12.08B | 16.42B | 17B | 13.56B | 9.9B | 12.88B | 13.84B | 14.2B | 18.02B | 15.73B | 11.31B | 8.51B | 12.91B | 12.33B | 11.97B | 9.78B | 7.06B | 5.81B | 5.01B | 5.23B | 5.68B | 6.17B | 6.81B | 6.29B | 5.39B |
| Gross Margin % | 32.52% | 32.34% | 35.99% | 34.69% | 29.47% | 29.43% | 28.93% | 30.51% | 31.07% | 29.82% | 25.68% | 27.39% | 25.08% | 25.52% | 27.36% | 26.16% | 26.55% | 26.27% | 25.15% | 27.43% | 28.83% | 26.92% | 23.3% | 25.47% | 24.84% | 25.58% | 28.14% | 31.3% | 32.47% | 33.23% | 32.6% |
| Gross Profit Growth % | - | -6.28% | 0.26% | 32.84% | 16.72% | 24.23% | -26.43% | -3.45% | 25.43% | 36.97% | -23.15% | -6.96% | -2.53% | -21.2% | 14.55% | 39.15% | 32.87% | -34.08% | 4.68% | 3.04% | 22.36% | 38.5% | 21.55% | 16.06% | -4.3% | -7.87% | -7.91% | -9.47% | 8.3% | 16.77% | 13.29% |
| Operating Expenses | 11.29B | 10.65B | 10.25B | 10.3B | 9.61B | 8.13B | 7.52B | 8.13B | 8.71B | 9.1B | 8.73B | 9.09B | 10.53B | 8.57B | 9.45B | 8.58B | 7.34B | 7.93B | 8.46B | 7.41B | 7.05B | 6B | 4.38B | 4.14B | 3.68B | 3.92B | 3.25B | 4.11B | 4.07B | 3.5B | 3.1B |
| OpEx % of Revenue | - | 15.76% | 15.82% | 15.35% | 16.17% | 15.94% | 18.02% | 15.1% | 15.92% | 20.01% | 22.67% | 19.34% | 19.08% | 15.41% | 14.35% | 14.27% | 17.24% | 24.49% | 16.49% | 16.48% | 16.97% | 16.5% | 14.45% | 18.15% | 18.27% | 19.17% | 16.12% | 20.87% | 19.4% | 18.48% | 18.76% |
| Selling, General & Admin | 7.21B | 6.99B | 6.67B | 6.37B | 5.65B | 5.37B | 4.64B | 5.16B | 5.48B | 5B | 4.38B | 4.95B | 6.53B | 5.55B | 5.92B | 5.2B | 4.25B | 3.65B | 4.4B | 3.82B | 3.71B | 3.19B | 2.93B | 2.32B | 2.09B | 2.57B | 2.6B | 2.54B | 2.56B | 2.23B | 2.4B |
| SG&A % of Revenue | - | 10.33% | 10.29% | 9.5% | 9.51% | 10.53% | 11.12% | 9.59% | 10.01% | 11% | 11.37% | 10.53% | 11.83% | 9.97% | 8.99% | 8.65% | 9.97% | 11.25% | 8.57% | 8.5% | 8.93% | 8.78% | 9.65% | 10.18% | 10.39% | 12.55% | 12.91% | 12.9% | 12.21% | 11.79% | 14.54% |
| Research & Development | 2.21B | 2.15B | 2.11B | 2.11B | 1.81B | 1.69B | 1.42B | 1.69B | 1.85B | 1.84B | 1.85B | 2.12B | 2.38B | 2.05B | 2.47B | 2.3B | 1.91B | 1.42B | 1.73B | 1.4B | 1.35B | 1.08B | 928M | 669M | 656M | 696M | 649M | 626M | 643M | 528M | 0 |
| R&D % of Revenue | - | 3.18% | 3.25% | 3.14% | 3.05% | 3.31% | 3.39% | 3.15% | 3.38% | 4.05% | 4.81% | 4.51% | 4.31% | 3.68% | 3.74% | 3.82% | 4.47% | 4.39% | 3.37% | 3.12% | 3.24% | 2.98% | 3.06% | 2.93% | 3.26% | 3.4% | 3.22% | 3.18% | 3.07% | 2.79% | - |
| Other Operating Expenses | 4M | 1.52B | 1.48B | 1.82B | 2.14B | 1.07B | 1.47B | 1.27B | 1.38B | 2.25B | 2.5B | 2.02B | 1.62B | 981M | 1.06B | 1.08B | 1.19B | 2.87B | 2.33B | 2.19B | 1.99B | 1.72B | 524M | 1.15B | 932M | 657M | 0 | 945M | 865M | 738M | 696M |
| Operating Income | 11.72B | 11.21B | 13.07B | 12.97B | 7.9B | 6.88B | 4.55B | 8.29B | 8.29B | 4.46B | 1.16B | 3.79B | 3.31B | 5.63B | 8.57B | 7.15B | 3.96B | 577M | 4.45B | 4.92B | 4.92B | 3.78B | 2.68B | 1.67B | 1.32B | 1.31B | 2.42B | 2.05B | 2.74B | 2.79B | 2.29B |
| Operating Margin % | 16.56% | 16.59% | 20.17% | 19.33% | 13.3% | 13.49% | 10.91% | 15.41% | 15.15% | 9.81% | 3.02% | 8.05% | 6.01% | 10.11% | 13.01% | 11.89% | 9.31% | 1.78% | 8.67% | 10.95% | 11.85% | 10.41% | 8.86% | 7.32% | 6.57% | 6.41% | 12.02% | 10.43% | 13.07% | 14.75% | 13.84% |
| Operating Income Growth % | - | -14.24% | 0.82% | 64.04% | 14.92% | 51.07% | -45.08% | -0.04% | 85.94% | 283.82% | -69.3% | 14.21% | -41.12% | -34.35% | 19.85% | 80.49% | 586.83% | -87.03% | -9.61% | 0% | 30.05% | 40.98% | 60.72% | 26.13% | 0.99% | -45.94% | 18.06% | -25.09% | -1.76% | 22.04% | 15.86% |
| EBITDA | 14.03B | 13.47B | 15.22B | 15.11B | 10.12B | 9.23B | 6.99B | 10.87B | 11.06B | 7.34B | 4.2B | 6.83B | 6.48B | 8.71B | 11.39B | 9.68B | 6.26B | 2.91B | 6.43B | 6.72B | 6.52B | 5.26B | 4.08B | 3.02B | 2.54B | 2.48B | 3.45B | 3B | 3.61B | 3.53B | 2.98B |
| EBITDA Margin % | 19.83% | 19.93% | 23.49% | 22.53% | 17.03% | 18.11% | 16.73% | 20.2% | 20.21% | 16.14% | 10.89% | 14.53% | 11.74% | 15.66% | 17.28% | 16.1% | 14.7% | 8.99% | 12.52% | 14.94% | 15.71% | 14.48% | 13.47% | 13.23% | 12.62% | 12.13% | 17.09% | 15.22% | 17.2% | 18.65% | 18.05% |
| EBITDA Growth % | -1.87% | -11.51% | 0.76% | 49.26% | 9.68% | 32.14% | -35.72% | -1.74% | 50.73% | 74.86% | -38.57% | 5.47% | -25.68% | -23.46% | 17.62% | 54.66% | 114.86% | -54.68% | -4.32% | 2.99% | 23.99% | 28.91% | 35.27% | 18.59% | 2.58% | -28.05% | 14.94% | -16.86% | 2.21% | 18.3% | 12.31% |
| D&A (Non-Cash Add-back) | 2.32B | 2.26B | 2.15B | 2.14B | 2.22B | 2.35B | 2.43B | 2.58B | 2.77B | 2.88B | 3.03B | 3.05B | 3.16B | 3.09B | 2.81B | 2.53B | 2.3B | 2.34B | 1.98B | 1.8B | 1.6B | 1.48B | 1.4B | 1.35B | 1.22B | 1.17B | 1.02B | 945M | 865M | 738M | 696M |
| EBIT | 12.99B | 12.59B | 13.88B | 13.56B | 9.2B | 8.69B | 4.51B | 8.23B | 8.23B | 4.61B | 644M | 3.95B | 3.64B | 5.59B | 8.7B | 7.12B | 4.09B | 2B | 5.93B | 6.41B | 6.16B | 4.93B | 2.68B | 2.2B | 1.91B | 1.31B | 2.42B | 2.05B | 2.74B | 2.79B | 2.29B |
| Net Interest Income | -1.02B | -543M | -30M | -17M | -276M | -405M | -398M | -215M | -206M | -400M | -425M | -436M | -413M | -381M | -385M | -300M | -257M | -291M | -173M | -189M | -191M | -163M | -677M | -720M | -521M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 388M | 487M | 482M | 494M | 167M | 80M | 112M | 202M | 195M | 122M | 74M | 65M | 66M | 84M | 82M | 85M | 86M | 98M | 101M | 99M | 83M | 97M | 77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.41B | 1.03B | 512M | 511M | 443M | 485M | 510M | 417M | 401M | 522M | 499M | 501M | 479M | 465M | 467M | 385M | 343M | 389M | 274M | 288M | 274M | 260M | 754M | 720M | 521M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 481M | 353M | 345M | 147M | 867M | 1.36B | -544M | -450M | -447M | -362M | -1.03B | -346M | -154M | -506M | -323M | -452M | -237M | -20M | 90M | 142M | 21M | 190M | 82M | -173M | -214M | -139M | -925M | -653M | -564M | -330M | -313M |
| Pretax Income | 12.2B | 11.56B | 13.42B | 13.11B | 8.77B | 8.23B | 4.01B | 7.84B | 7.85B | 4.1B | 133M | 3.44B | 3.16B | 5.12B | 8.25B | 6.7B | 3.73B | 557M | 4.54B | 5.06B | 4.94B | 3.97B | 2.77B | 1.5B | 1.11B | 1.17B | 1.5B | 1.4B | 2.18B | 2.46B | 1.97B |
| Pretax Margin % | 17.24% | 17.11% | 20.7% | 19.55% | 14.76% | 16.16% | 9.6% | 14.57% | 14.34% | 9.01% | 0.35% | 7.32% | 5.73% | 9.2% | 12.52% | 11.14% | 8.75% | 1.72% | 8.84% | 11.26% | 11.9% | 10.94% | 9.13% | 6.56% | 5.51% | 5.73% | 7.43% | 7.11% | 10.38% | 13% | 11.95% |
| Income Tax | 2.86B | 2.77B | 2.63B | 2.78B | 2.07B | 1.74B | 1.01B | 1.75B | 1.7B | 3.34B | 192M | 916M | 692M | 1.32B | 2.53B | 1.72B | 968M | -270M | 953M | 1.49B | 1.41B | 1.12B | 731M | 398M | 312M | 367M | 447M | 455M | 665M | 796M | 613M |
| Effective Tax Rate % | 23.48% | 23.94% | 19.59% | 21.21% | 23.57% | 21.15% | 25.09% | 22.27% | 21.64% | 81.48% | 144.36% | 26.64% | 21.9% | 25.75% | 30.64% | 25.67% | 25.98% | -48.47% | 21% | 29.33% | 28.43% | 28.18% | 26.43% | 26.59% | 28.11% | 31.31% | 29.8% | 32.48% | 30.53% | 32.34% | 31.05% |
| Net Income | 9.42B | 8.87B | 10.79B | 10.34B | 6.71B | 6.49B | 3B | 6.09B | 6.15B | 754M | -67M | 2.51B | 2.45B | 3.79B | 5.68B | 4.93B | 2.7B | 895M | 3.56B | 3.54B | 3.54B | 2.85B | 2.04B | 1.1B | 798M | 805M | 1.05B | 946M | 1.51B | 1.67B | 1.36B |
| Net Margin % | 13.31% | 13.13% | 16.65% | 15.41% | 11.28% | 12.73% | 7.18% | 11.33% | 11.23% | 1.66% | -0.17% | 5.34% | 4.44% | 6.81% | 8.62% | 8.19% | 6.34% | 2.76% | 6.93% | 7.88% | 8.52% | 7.85% | 6.71% | 4.82% | 3.96% | 3.94% | 5.22% | 4.8% | 7.21% | 8.8% | 8.24% |
| Net Income Growth % | -5.23% | -17.78% | 4.42% | 54.14% | 3.33% | 116.44% | -50.8% | -0.88% | 715.25% | 1225.37% | -102.67% | 2.45% | -35.29% | -33.3% | 15.28% | 82.52% | 201.68% | -74.84% | 0.45% | 0.11% | 23.93% | 40.25% | 85.17% | 37.72% | -0.87% | -23.55% | 11.31% | -37.48% | -9.13% | 22.34% | 19.81% |
| Net Income (Continuing) | 9.33B | 8.79B | 10.79B | 10.33B | 6.7B | 6.49B | 3B | 6.09B | 6.15B | 759M | -59M | 2.52B | 2.47B | 3.8B | 5.72B | 4.98B | 2.76B | 827M | 3.58B | 3.58B | 3.54B | 2.85B | 2.04B | 1.1B | 798M | 805M | 1.05B | 946M | 1.51B | 1.67B | 1.36B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -1M | 0 | 3M | 9M | 22M | 32M | 47M | 41M | 41M | 69M | 76M | 76M | 80M | 67M | 50M | 46M | 40M | 560M | 627M | 113M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 20.22 | 18.83 | 22.05 | 20.12 | 12.64 | 11.83 | 5.46 | 10.74 | 10.26 | 1.26 | -0.11 | 4.18 | 5.88 | 5.75 | 8.48 | 7.40 | 4.15 | 1.43 | 5.66 | 5.37 | 5.17 | 4.04 | 3.86 | 1.56 | 1.15 | 1.16 | 1.51 | 1.32 | 2.06 | 2.18 | 1.75 |
| EPS Growth % | -2.05% | -14.6% | 9.59% | 59.18% | 6.85% | 116.67% | -49.16% | 4.68% | 714.29% | 1245.45% | -102.63% | -28.91% | 2.26% | -32.19% | 14.59% | 78.31% | 190.21% | -74.73% | 5.4% | 3.87% | 27.97% | 4.66% | 147.44% | 35.65% | -0.86% | -23.18% | 14.39% | -35.92% | -5.5% | 24.57% | 23.24% |
| EPS (Basic) | - | 18.90 | 22.17 | 20.24 | 12.73 | 11.93 | 5.51 | 10.85 | 10.39 | 1.27 | -0.11 | 4.23 | 5.99 | 5.87 | 8.71 | 7.64 | 4.28 | 1.45 | 5.83 | 5.55 | 5.37 | 4.21 | 3.97 | 1.59 | 1.16 | 1.17 | 1.52 | 1.33 | 2.09 | 2.22 | 1.77 |
| Diluted Shares Outstanding | 465.8M | 469M | 489.4M | 513.6M | 530.4M | 548.5M | 548.6M | 567.5M | 599.4M | 599.3M | 584.3M | 601.3M | 628.9M | 658.6M | 669.6M | 666.1M | 650.4M | 626M | 627.9M | 659.5M | 683.8M | 705.8M | 527.65M | 702.7M | 693.8M | 694.2M | 697.35M | 718.8M | 736.25M | 762.01M | 777.78M |
| Basic Shares Outstanding | 463.4M | 466.5M | 486.7M | 510.6M | 526.9M | 544M | 544.1M | 561.6M | 591.4M | 591.8M | 584.3M | 594.3M | 617.2M | 645.2M | 652.6M | 645M | 631.5M | 615.2M | 610.5M | 638.2M | 658.7M | 678.4M | 513.05M | 690.4M | 688M | 686.6M | 692.76M | 710.8M | 725.66M | 750M | 770.01M |
| Dividend Payout Ratio | - | 30.98% | 24.52% | 24.8% | 36.39% | 35.94% | 74.82% | 34.99% | 31.74% | 242.84% | - | 69.94% | 66.07% | 29.32% | 28.46% | 23.52% | 40.15% | 114.97% | 26.79% | 23.86% | 20.53% | 21.65% | 26.24% | 44.68% | 60.28% | 58.88% | 43.87% | 47.04% | 26.44% | 20.3% | 21.23% |
Cyclical demand and inventory volatility
According to reported financial statements, Caterpillar's revenue growth has exhibited significant volatility, swinging from a 9.8% contraction in 2025Q1 to a 22.2% expansion by 2026Q1, highlighting the company's sensitivity to shifting global industrial demand and the inherent lumpiness of large-scale heavy machinery capital expenditure cycles.
The recent acceleration in revenue suggests a potential recovery in end-market demand, though investors should monitor whether this is driven by sustainable volume growth or temporary dealer inventory restocking. The divergence between quarterly growth rates indicates that the company remains highly susceptible to macro-economic fluctuations and infrastructure spending patterns.
Based on the provided income statement data, Caterpillar has maintained a robust gross margin profile, peaking at 37.3% in 2024Q2 before stabilizing near 35.1% in 2026Q1, which suggests a strong ability to pass through input cost inflation to customers despite broader industrial sector headwinds.
This margin stability appears to be supported by a favorable mix of high-margin aftermarket parts and services, which act as a buffer against the lower-margin new equipment sales. The ability to sustain these levels during periods of revenue contraction implies significant pricing power and effective management of the global supply chain.
As reported in recent filings, operating margins have fluctuated between 13.9% and 22.3% over the last ten quarters, indicating that Caterpillar's high fixed-cost structure creates significant operating leverage that can amplify earnings volatility when revenue growth fails to outpace the growth in operating expenses.
The compression in operating margins during recent periods suggests that SG&A and R&D costs are not scaling linearly with revenue, potentially reflecting ongoing investments in digital and autonomous technologies. Analysts should investigate whether these elevated expense levels represent a permanent shift in the cost base or temporary strategic spending.
Data from the income statement reveals that stock-based compensation has fluctuated significantly, reaching a negative $97 million in 2026Q1, which warrants further investigation into the accounting treatment of these items and their subsequent impact on the quality of reported net income and diluted EPS figures.
The variability in net income margins, which have ranged from 12.5% to 18.1%, suggests that non-operating items and tax rate anomalies may be influencing the bottom line. Investors should be cautious of relying solely on EPS growth, as these non-cash adjustments can obscure the underlying operational performance of the core business.
Quick answers to the most common questions about buying CAT stock.
For fiscal year 2025, Caterpillar Inc. (CAT) reported total revenue of $67.59B. This represents a 309.1% increase compared to $16.52B in 1996.
Caterpillar Inc. (CAT) is profitable, generating $8.87B in net income for the fiscal year ending 2025 with a net profit margin of 13.1%.
Caterpillar Inc. (CAT) reported an operating income of $11.21B, resulting in an operating profit margin of 16.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Caterpillar Inc. (CAT) generated $21.86B in gross profit for the year, representing a gross profit margin of 32.3%. This demonstrates the company's core pricing power and production efficiency.