New York, January 27, 2026, 13:47 (ET) — Regular session
- CAT shares climbed roughly 0.4% in afternoon trading following Jefferies’ boost of its price target to $750
- Caterpillar will release its fourth-quarter and full-year earnings on Thursday, Jan. 29
- Investors are eyeing the Fed’s Wednesday decision, while tariff costs continue to weigh on industrial earnings
Caterpillar shares climbed roughly 0.4% in Tuesday afternoon trading, following Jefferies’ upgrade of the price target to $750 while maintaining a Buy rating. The stock last traded at $638.49, having fluctuated between $633.31 and $643.99 earlier in the session. (GuruFocus)
The call comes with investors gearing up for Caterpillar’s quarterly report later this week, a key early indicator of global construction and mining demand in this earnings season.
Caterpillar’s results often signal more than just moves in its stock price. Dealers, miners, and builders usually appear in the company’s figures before official economic reports hit. Plus, changes in financing conditions can rapidly shift order volumes.
Jefferies described a balanced setup heading into the quarter, highlighting steady volumes and tariff impacts that investors have mostly factored in. The firm expects a stronger 2026 for Caterpillar’s Construction Industries, driven by rising construction demand, solid dealer orders, and stable commodity prices. It also sees potential upside in Resource Industries if mining activity picks up later this year. Jefferies’ $750 price target values the stock at roughly 25 times projected 2026 EBITDA, which excludes interest, taxes, depreciation, and amortization as a cash-flow measure. (Investing)
Caterpillar will report its fourth-quarter and full-year 2025 earnings at 5:30 a.m. CST on Thursday, followed by a conference call at 7:30 a.m. CST. (Caterpillar Investors)
Wall Street forecasts earnings of $4.67 per share on revenue hitting $17.89 billion, according to a Zacks preview shared by Nasdaq. The same preview estimates Construction Industries sales around $6.79 billion, while Energy & Transportation should pull in about $8.63 billion this quarter. (Nasdaq)
Equipment financing showed strength recently. U.S. businesses borrowed 5.9% more for equipment purchases in December compared to the same month last year, according to the Equipment Leasing and Finance Association. Its president and CEO, Leigh Lytle, stated, “The data show that the equipment finance industry has not only weathered but thrived amid historic uncertainty.” (Reuters)
Macro factors continue to weigh on the tape. The Federal Open Market Committee will release its statement at 2 p.m. EST Wednesday, with the chair holding a news conference half an hour later at 2:30 p.m. EST, according to the Federal Reserve’s calendar. (Federal Reserve)
Tariffs continue to complicate the picture, especially for global manufacturers caught between protecting margins and keeping customers. “Most consumers are still mad about the level of current prices and won’t take kindly to further hikes,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Reuters. This comes as companies like Caterpillar prepare for a busy week with over 100 S&P 500 earnings reports due. (Reuters)
Separately, Caterpillar announced earlier this month that CEO Joe Creed will take over as chairman on April 1, following Jim Umpleby’s retirement. (Reuters)
CAT holders will be watching Thursday’s earnings closely, especially for clues from management on segment demand, dealer orders, and pricing or cost trends heading into 2026. The Fed’s Wednesday decision might shape sentiment ahead of the report.
