Caterpillar Inc. (NYSE:CAT) reported Thursday first-quarter 2026 results, with sales rising 22% year over year to $17.4 billion.
Adjusted profit per share of $5.54 beat the $4.62 estimate, while GAAP profit per share was $5.47.
Shares were trading higher following the earnings release, compared with the prior-year GAAP profit per share of $4.20.
Margins Impacted By Costs, Tariffs
Operating profit rose 20% to $3.09 billion, though margins edged lower year over year.
The operating profit margin came in at 17.7% for the first quarter of 2026, down from 18.1% a year earlier. Adjusted operating margin slipped to 18.0% from 18.3% in the prior-year period.
Higher sales volume contributed $2.3 billion, and favorable price realization added $426 million, offset by higher manufacturing and operating costs.
Unfavorable manufacturing costs “largely reflected the impact of higher tariff costs,” along with increased SG&A and R&D expenses of $225 million.
Cash Deployment, Balance Sheet
Enterprise operating cash flow was $1.9 billion, and the company ended the quarter with $4.1 billion in enterprise …