Caterpillar stock rose 1.9% amid several positive developments. Evercore ISI Group maintained an Outperform rating and raised its price target to $878. Bank of America raised its price target to $825 from $735, citing expanding turbine demand beyond data centers and 24% year-over-year growth in oil and gas demand. The company announced a $725 million investment in its Lafayette manufacturing facilities, expected to create 100 new full-time jobs over three to four years. Caterpillar also partnered with Geotab to integrate fleet management capabilities, combining data from nearly 5 million connected vehicles with VisionLink's 1.6 million off-highway assets. The company reported fourth-quarter 2025 adjusted earnings per share of $5.16, a 0.4% year-over-year increase and a turnaround after five consecutive quarters of earnings declines. For 2026, Caterpillar expects revenue growth near the upper end of its long-term 5-7% target, though profitability remains pressured by estimated tariff impacts of $2.6 billion for the full year.
Read full analysisCaterpillar stock rose 1.9% amid several positive developments. Evercore ISI Group maintained an Outperform rating and raised its price target to $878. Bank of America raised its price target to $825 from $735, citing expanding turbine demand beyond data centers and 24% year-over-year growth in oil and gas demand. The company announced a $725 million investment in its Lafayette manufacturing facilities, expected to create 100 new full-time jobs over three to four years. Caterpillar also partnered with Geotab to integrate fleet management capabilities, combining data from nearly 5 million connected vehicles with VisionLink's 1.6 million off-highway assets. The company reported fourth-quarter 2025 adjusted earnings per share of $5.16, a 0.4% year-over-year increase and a turnaround after five consecutive quarters of earnings declines. For 2026, Caterpillar expects revenue growth near the upper end of its long-term 5-7% target, though profitability remains pressured by estimated tariff impacts of $2.6 billion for the full year.
Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial turbines. The stock has surged roughly 25% since its January 29 earnings beat on an AI data center construction narrative, with BofA and Evercore ISI recently raising price targets to $825 and $878, respectively. Morningstar identifies CAT as the single largest contributor to the industrials sector's 2026 outperformance, framing it as a key beneficiary of the rotation from tech into real-economy infrastructure plays.