Updated: Sunday, November 23, 2025. U.S. markets are closed today; figures refer to Friday’s close and the latest available data.
Caterpillar stock today: price snapshot and key stats
Caterpillar Inc. (NYSE: CAT) heads into the new week trading near the upper end of its 52‑week range after a huge 2025 rally.
- Last price: about $550 per share as of late trading on November 21, 2025
- 52‑week range:$267.30 – $596.21 [1]
- Market cap: roughly $258 billion [2]
- Trailing P/E ratio: around 28–29x earnings, well above the company’s 3‑year average in the high‑teens [3]
- Dividend yield: about 1.1%, based on an annual dividend of $6.04 per share [4]
After surging on its October earnings report, Caterpillar has become one of the top‑performing stocks in the Dow Jones Industrial Average in 2025, with year‑to‑date gains of roughly 60%+, far outpacing the broader industrials sector. [5]
That kind of move naturally raises the question: is CAT stock still a buy after this AI‑powered rally, or is it “priced for perfection”?
Why CAT stock is near record highs in late 2025
1. AI data centers turned Caterpillar into an “old‑school AI play”
Caterpillar’s breakout year has less to do with bulldozers and more to do with powering AI data centers.
- The company’s Energy & Transportation (E&T) segment — which includes power‑generation systems, gas turbines and engines — delivered 17% year‑over‑year sales growth in Q3 2025, to about $8.4 billion. [6]
- E&T now accounts for roughly 40% of Caterpillar’s total revenue, according to recent coverage highlighting the shift from traditional construction toward power‑related businesses. [7]
The driver: surging electricity demand from AI‑heavy cloud and hyperscale data centers, which are ordering Caterpillar’s backup and on‑site power solutions to keep servers running 24/7. Reuters recently noted that AI‑driven data center investments have been a key factor behind the E&T unit’s growth and the company’s revenue beat in Q3. [8]
In other words, Caterpillar has quietly become part of the AI infrastructure trade, alongside more obvious winners like Nvidia — but selling engines, turbines and generators instead of chips. [9]
2. A record backlog and solid Q3 execution
In Q3 2025, Caterpillar reported: [10]
- Sales and revenues of $17.6 billion, up 10% from $16.1 billion a year earlier
- Adjusted EPS of $4.95, beating analyst expectations around $4.50+
- Growth across all three primary segments (Construction Industries, Resource Industries, Energy & Transportation)
Reports from financial media also highlighted a record order backlog of around $39.8 billion, underscoring strong multi‑year demand, particularly in energy and data‑center‑related projects. [11]
Management emphasized:
- Robust operating cash flow (about $3.7 billion in Q3 alone)
- A focus on “profitable growth” and disciplined execution
- Continued strength in end‑user demand despite a dynamic macro environment [12]
3. Investor Day 2025: long‑term targets through 2030
On November 4, 2025, Caterpillar held its 2025 Investor Day: “The Next 100 Years”, outlining a long‑term strategic plan and updated financial targets through 2030. [13]
Key themes included:
- Maintaining strong total shareholder return (TSR) over the cycle
- Target ranges for adjusted operating margins and ME&T free cash flow
- Ongoing investment in advanced technology and energy solutions
- A clear commitment to continued dividends and buybacks
That event reinforced the narrative that Caterpillar isn’t just benefiting from a one‑off AI cycle, but is positioning itself as a long‑term power infrastructure partner for a more electrified, data‑intensive world.
New catalyst this week: Vertiv collaboration for AI data centers
The most important new development for CAT stock this week is its strategic collaboration with Vertiv (NYSE: VRT), announced on November 18, 2025.
According to joint press releases and follow‑up coverage, Vertiv and Caterpillar (including its Solar Turbines unit) will: [14]
- Develop advanced energy‑optimization solutions for AI data centers
- Integrate Caterpillar’s on‑site power generation and CCHP (combined cooling, heat & power) with Vertiv’s power distribution and cooling technologies
- Offer pre‑designed, fully integrated “grid‑to‑chip” architectures that
- simplify design and deployment
- improve energy efficiency and carbon footprint
- reduce time‑to‑power and ease strain on local grids
Industry reports frame this as a way to tackle one of AI’s biggest bottlenecks: how to power and cool massive, high‑density data centers without overwhelming existing infrastructure. [15]
For shareholders, the Vertiv deal:
- Deepens Caterpillar’s credibility as an AI‑infrastructure play, beyond selling standalone generators
- May support higher‑margin, solution‑based revenue, not just equipment sales
- Could potentially increase recurring service and retrofit opportunities as data center operators scale out their capacity
This is the sort of partnership that tends to resonate with growth‑oriented investors — and it lands just weeks after Caterpillar’s strong Q3 earnings beat.
Institutional buying vs. insider selling: what the flows say
A fresh MarketBeat report on November 23, 2025, shows that Cynosure Group LLC increased its Caterpillar position by over 150% in Q2 2025, bringing its stake to nearly 10,000 shares worth about $3.9 million. [16]
The same report notes:
- Around 71% of Caterpillar’s shares are owned by institutional investors, underscoring its status as a core blue‑chip holding
- Several hedge funds and advisory firms have recently initiated or added to CAT positions
- The company’s Q3 beat (EPS of $4.95 vs. ~$4.52 expected; revenue of $17.64 billion vs. $16.72 billion expected) has led multiple Wall Street firms to lift price targets [17]
On the other hand, insiders have been net sellers, disposing of more than 80,000 shares over the past few months, worth over $40 million, while still retaining a small overall ownership stake. [18]
Insider selling at record highs isn’t unusual — compensation and diversification are real factors — but it does add to the perception that expectations are elevated after such a big run.
Fundamentals check: earnings, margins and tariffs
Q3 2025 by the numbers
From Caterpillar’s official Q3 release: [19]
- Sales & revenues: $17.6 billion, +10% year‑over‑year
- Operating margin: 17.3% (down from 19.5% a year earlier)
- Adjusted operating margin: 17.5% (down from 20.0%)
- Profit per share: $4.88 (vs. $5.06 in Q3 2024)
- Adjusted EPS: $4.95 (vs. $5.17 in Q3 2024)
- Operating cash flow: $3.7 billion in the quarter
Segment trends (year‑over‑year):
- Construction Industries: +7% sales
- Resource Industries: +2%
- Energy & Transportation: +17%
The mix is clear: Energy & Transportation is driving growth, while traditional construction machinery is growing more modestly.
Tariffs: a real but manageable headwind
Caterpillar continues to wrestle with tariff‑related costs:
- The company now expects annual tariff expenses of roughly $1.6–$1.75 billion, up from prior estimates, with a heavier impact anticipated in Q4. [20]
Earlier in 2025, tariff pressures contributed to a drop in Q2 earnings, even as demand remained resilient. [21]
For investors, that means:
- Tariffs are likely to pressure margins even if revenue stays strong
- The story is not just about AI‑fueled growth, but also about how well Caterpillar can offset higher costs with pricing, efficiency and mix
Valuation: is CAT stock “priced for perfection”?
Caterpillar’s valuation has rerated sharply higher in 2025:
- P/E ratio: around 28x trailing earnings, versus a 5‑year average under 20x [22]
- Forward P/E: mid‑20s based on consensus earnings estimates for the next year [23]
Several analyses have described Caterpillar as “priced for perfection”, noting that:
- The share price has climbed over 45–60% year‑to‑date, beating even high‑flying tech names in the Dow. [24]
- Earnings growth has slowed compared to 2023–2024, with margins under pressure from tariffs and cost inflation. [25]
Critics warn that any disappointment — whether from:
- slower AI data center orders,
- a deeper construction slowdown, or
- worse‑than‑expected tariff impacts
could trigger a valuation reset after such a powerful run.
Dividend, buybacks and balance sheet
Despite the rally, Caterpillar has stuck to its long‑standing identity as a dividend and shareholder‑return machine.
- The board recently maintained the quarterly dividend at $1.51 per share, paid on November 20, 2025, to holders of record on October 20. [26]
- That works out to $6.04 per share annually and a yield of about 1.1% at current prices. [27]
- Caterpillar has increased its dividend for more than 30 consecutive years, placing it firmly in the “dividend growth” camp. [28]
In Q3 2025 alone, the company:
- Returned $1.1 billion to shareholders, including
- $700 million in dividends and
- $400 million in share repurchases [29]
On the balance sheet side, CAT’s latest data show:
- Current ratio: about 1.38
- Quick ratio:0.81
- Debt‑to‑equity:1.34 [30]
Those are typical for a capital‑intensive industrial, but with strong cash flows and a sizable backlog, Caterpillar currently looks financially solid rather than stretched.
What Wall Street is saying about CAT stock now
Analysts are generally positive on Caterpillar, but upside from here may be more modest than the 2025 gains suggest.
Recent data from several platforms indicate: [31]
- Overall rating: around “Moderate Buy” to “Buy”
- Price targets:
- Rating mix: multiple “Strong Buy” and “Buy” ratings, several “Hold” calls, and at least one “Sell” rating, reflecting valuation concerns. [34]
Taken together, Wall Street seems to be saying:
Caterpillar is a high‑quality business with a real AI‑infrastructure tailwind — but a lot of the good news is already in the price.
Is Caterpillar (CAT) stock a buy, hold, or profit‑taking candidate today?
What you do with CAT stock on November 23, 2025 depends largely on who you are as an investor and your risk tolerance. This article is informational only and not personalized investment advice.
CAT may appeal to you if:
- You want exposure to AI and data‑center growth but prefer a tangible, asset‑heavy industrial over a high‑multiple chip stock
- You believe power infrastructure and on‑site generation will remain a bottleneck for AI growth — and that Caterpillar’s Vertiv collaboration will deepen its moat in that space [35]
- You value a long dividend‑growth track record plus ongoing buybacks as part of total return [36]
On the other hand, caution is warranted if:
- You’re uncomfortable paying a nearly 30x P/E for a cyclical industrial whose margins are under tariff pressure [37]
- You expect a downturn in global construction or mining, which could overshadow strength in energy and data centers
- You worry that the stock’s 2025 outperformance vs. the Dow and S&P Industrials leaves little room for error [38]
Key things to watch into 2026
If you’re following CAT from here, keep an eye on:
- Q4 and full‑year 2025 earnings, expected around late January 2026, and any updated tariff guidance [39]
- The pace of orders and backlog growth in Energy & Transportation versus Construction Industries
- Execution on the Vertiv partnership and any early wins in AI‑dense data center projects [40]
- Whether valuation cools or remains stretched relative to historical averages and peers [41]
Bottom line:
On November 23, 2025, Caterpillar stock sits at the crossroads of old‑world machinery and new‑world AI demand. The fundamentals are strong, the AI/data‑center story just got a new boost with Vertiv, and Wall Street still leans bullish — but after a massive year‑to‑date rally and a premium valuation, CAT is no longer a simple “value industrial” story. It’s a high‑quality, higher‑expectation AI‑infrastructure play, and investors should treat it accordingly.
References
1. finance.yahoo.com, 2. www.marketbeat.com, 3. public.com, 4. stockanalysis.com, 5. www.reuters.com, 6. investors.caterpillar.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.axios.com, 10. www.prnewswire.com, 11. www.investors.com, 12. www.prnewswire.com, 13. investors.caterpillar.com, 14. www.solarturbines.com, 15. www.vertiv.com, 16. www.marketbeat.com, 17. www.marketbeat.com, 18. www.marketbeat.com, 19. www.prnewswire.com, 20. www.reuters.com, 21. www.ft.com, 22. public.com, 23. seekingalpha.com, 24. www.investopedia.com, 25. www.investopedia.com, 26. investors.caterpillar.com, 27. stockanalysis.com, 28. stockanalysis.com, 29. www.prnewswire.com, 30. www.marketbeat.com, 31. www.marketbeat.com, 32. www.marketbeat.com, 33. stockanalysis.com, 34. www.marketbeat.com, 35. www.solarturbines.com, 36. www.prnewswire.com, 37. public.com, 38. www.reuters.com, 39. www.prnewswire.com, 40. www.solarturbines.com, 41. public.com
