TLDR
- Caterpillar secured a 2 GW natural gas generator and battery storage deal with Monarch Compute Campus to power AI data centers
- Citigroup raised its price target on CAT stock from $710 to $760, maintaining a “buy” rating with 10.4% upside potential
- The company beat Q4 earnings expectations with $5.16 EPS vs $4.67 forecast and $19.13 billion revenue vs $17.81 billion expected
- Caterpillar stock jumped 4.7% to $688.23 after the earnings beat, with analyst consensus at “Moderate Buy” and average target of $678.29
- Federal Court approved Caterpillar’s acquisition of RPMGlobal Holdings for A$5.00 per share through subsidiary Revolution HoldCo
Caterpillar is making its move into AI infrastructure power. The heavy machinery maker just locked down a deal to supply 2 gigawatts of natural gas generator sets with battery storage to the Monarch Compute Campus.
The order comes as data centers scramble for reliable power sources. AI workloads are eating electricity at a pace that’s pushing tech companies to secure dedicated power infrastructure.
Trading jumped on Monday with the stock gaining $30.87 to reach $688.23. Volume hit 2,070,074 shares against the average of 2,495,027.
The timing works in Caterpillar’s favor. The company just posted quarterly results that crushed Wall Street’s numbers.
#Caterpillar$CAT, Q4-25.
Results:
📊 Adj. EPS: $5.16 🟢
💰 Revenue: $19.1B 🟢
📈 Net Income: $2.4B
🔎 Order backlog hit a record $51B, and MP&E free cash flow reached $3.7B despite higher tariffs. pic.twitter.com/sSBBxgS4Ma— EarningsTime (@Earnings_Time) January 29, 2026
Fourth quarter earnings came in at $5.16 per share. Analysts had penciled in $4.67. Revenue hit $19.13 billion versus the $17.81 billion consensus estimate.
That’s a 17.9% jump in revenue compared to the same quarter last year. The company maintained a net margin of 13.14% and return on equity of 45.76%.
Wall Street Raises Targets
Citigroup bumped its price target from $710 to $760. The firm kept its “buy” rating on the stock, seeing 10.4% upside from current levels.
JPMorgan went even higher. They lifted their target from $740 to $765 with an “overweight” rating.
HSBC upgraded the stock from “hold” to “strong-buy” back in November. William Blair set a $735 target following the recent earnings report.
The consensus among 25 analysts now sits at “Moderate Buy” with an average price target of $678.29. One analyst rates it “strong buy,” sixteen say “buy,” seven have it at “hold,” and one remains at “sell.”
Recent Performance and Metrics
The stock has been on a tear. Shares are up 8.6% over the past week and 15.5% for the month.
Year-to-date gains match that monthly performance at 15.5%. The one-year return stands at 93.7%.
Longer-term investors have done even better. Three-year returns hit 188.5%, while the five-year gain reaches 283.7%.
The company carries a market cap of $322.08 billion. It trades at a price-to-earnings ratio of 36.57 with a PEG ratio of 2.53.
Caterpillar’s debt-to-equity ratio sits at 1.44. The current ratio matches that at 1.44, with a quick ratio of 0.94.
The fifty-day moving average rests at $604.31. The two-hundred-day moving average comes in at $520.61.
Insider Activity and Ownership
Company insiders sold 54,729 shares worth roughly $31.1 million in the last quarter. That leaves insider ownership at 0.33% of the company.
CFO Andrew R.J. Bonfield sold 10,000 shares on December 31st at $575.06 each for $5.75 million total. Anthony D. Fassino moved 8,184 shares in November at $570.18 per share.
Institutional investors own 70.98% of the stock. Valeo Financial Advisors boosted its position by 36,842.1% in the second quarter to hold 7,299,751 shares valued at $2.83 billion.
Norges Bank picked up a new stake worth $2.17 billion. Wellington Management Group grew holdings by 3,949.8% to own 5,228,058 shares worth $2.49 billion.
Acquisition Cleared
The Federal Court of Australia approved Caterpillar’s acquisition of RPMGlobal Holdings. Revolution HoldCo, a wholly owned Caterpillar subsidiary, will acquire all RPMGlobal shares at A$5.00 each.
RPMGlobal shares will be suspended from ASX trading once the scheme becomes effective. The mining software company has operations in 125 countries with a market cap of A$1.1 billion.
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