Caterpillar (CAT) Stock: Jumps After Record Revenues, Strong Cash Flow, and Buybacks Boost Sentiment

TLDR

• Caterpillar jumps as record sales, cash flow, and buybacks boost confidence.
• Strong Q4 growth and heavy buybacks push Caterpillar shares higher.
• Record revenue and solid cash flow drive Caterpillar stock gains.
• Caterpillar rallies on record sales, steady demand, and capital returns.
• Strong earnings, buybacks, and cash flow lift Caterpillar shares.

Caterpillar (CAT) shares moved higher after the company posted record annual sales and solid fourth-quarter growth. The stock gained as the firm reported strong cash flow and continued heavy returns through buybacks and dividends. Markets reacted as the company showed momentum despite pressure on margins.Caterpillar trades at $663.23, up 3.10%, signaling a strong intraday rebound and bullish momentum.

Caterpillar Inc., CAT

Record Fourth-Quarter Revenue Strengthens Outlook

Caterpillar reported fourth-quarter revenue of $19.1 billion, and the performance marked an 18% increase from the prior year. The gain came from higher equipment demand, and it also reflected stable dealer inventories across major regions. The quarter’s volume growth supported a firm finish to the year.

The company posted an operating profit of $2.66 billion, and the result showed a 9% decline from the comparable period. The drop stemmed from higher manufacturing costs and restructuring expenses, and it also reflected tariff pressure. Higher sales volume helped reduce the overall decline.

Caterpillar recorded an operating margin of 13.9% during the quarter, and adjusted margin reached 15.6%. Both figures came in lower than last year, and the shift aligned with rising cost burdens. The firm maintained stable pricing and used volume strength to support earnings.

Full-Year Results Show Record Sales and Steady Execution

Caterpillar delivered full-year revenue of $67.6 billion, and the figure increased 4% from 2024. The rise came from stronger equipment sales to end users, and it offset weaker pricing in some markets. The company also continued to expand its order pipeline through a record backlog.

The company generated full-year operating margin of 16.5%, and adjusted margin reached 17.2%. Both readings declined from the prior year, and the shift reflected an increase in costs. Even so, the firm maintained disciplined execution and sustained production levels.

Profit per share reached $18.81 for the year, and adjusted earnings came in slightly higher. Both measures trailed last year, and the change followed heightened cost pressures and margin compression. The company also recorded steady performance across key segments.

Cash Flow, Buybacks and Balance Sheet Support Sentiment

Caterpillar produced $11.7 billion in operating cash flow during 2025, and the result highlighted strong operational efficiency. The company ended the year with $10 billion in cash, and the position strengthened liquidity. Management used available cash to support long-term financial plans.

The firm spent $5.2 billion on share repurchases during the year, and it also paid $2.7 billion in dividends. These actions reflected continued commitment to capital returns, and they helped reinforce confidence in the stock. The combined approach supported stable value creation.

Caterpillar also noted consistent equipment demand across construction, energy, and resource markets. Backlog strength helped support forward visibility, and it reinforced expectations for continued growth. As a result, the stock moved higher as markets focused on revenue records and solid cash generation.

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