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Caterpillar (CAT) maintained its $1.63 quarterly dividend and returned $7.9 billion to shareholders in H1 2026. The company raised its full-year 2026 sales growth outlook to mid-to-high teens, supported by a record $72 billion backlog and improved business conditions. CAT has increased its dividend for 33 consecutive years and maintains a sustainable dividend profile with a 0.30 dividend-to-free-cash-flow ratio.

Caterpillar (CAT) added $5.4 billion in first-half 2026 revenues from volume growth, with Construction Industries leading at $3.21 billion and Power & Energy contributing $1.58 billion. The company raised its 2026 sales growth forecast to mid-to-high teens, driven by strength across all three segments including infrastructure spending, data center demand, and mining activity.

Caterpillar (CAT) stock dropped 6% below its 50-day moving average due to broader market pressures and rising Treasury yields, but the company maintains strong fundamentals with record $72B backlog, 24% revenue growth, and 73% adjusted EPS growth. Despite elevated valuation, analysts recommend holding the stock while waiting for a better entry point.