-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Caterpillar's (CAT) Q1 earnings beat expectations with EPS of $5.47 vs. the consensus of $4.64, as sales surged 22% Y/Y to $17.4B, supported by $2.3B from higher volumes and $426M from pricing. Despite tariff headwinds that pressured operating margins lower by 30 bps, operating profit rose 20% on strong sales growth. Growth stemmed from CAT's cyclical Construction segment rather than the increasingly important Power & Energy business. Management guided tariff costs at $2.2B-$2.4B for 2026. Construction Industries led with sales rising 38% to $7.2B and segment profit surging 50% to $1.54B, with margins expanding 160 bps to 21.4% despite tariff pressures from dealer restocking. Power & Energy maintained momentum with 22% sales growth to $7B; however, margins compressed 170 bps to 20.6% as tariff costs weighed, while power generation sales increased 41% to $2.8B on data center demand. Resource Industries disappointed, with segment profit plummeting 39% to $378M as margins compressed 700 bps to 10.0%.