Cat revenue and profit surge in Q3 2026 despite higher manufacturing costs

Caterpillar has reported a 17% year-on-year increase in sales and revenue in Q3 of 2026 to $20.7 billion. Joe Creed, CEO of Caterpillar, speaks during a Caterpillar keynote at CES 2026 in Las Vegas (Image: Reuters/Steve Marcus) Operating profit margin was 20.4% for Q3 2026, compared with 17.3% in Q3 of 2025. The company said its increase in revenue was mainly due to higher sales volumes of $2.2 billion and favourable price realisation of $663 million./ Caterpillar's Construction Industries division saw an 18% increase in revenue to nearly $8 billion in the period. Power and energy was also up 18% to $8.8 billion. Resource Industries climbed 15% to $4.6 billion. Caterpillar attributed higher sales in Construction Industries to higher sales volumes of $874 million and favourable price realisation of $349 million. Sales increase in North America, Latin America, and EAME (Europe and the Middle East), with higher sales volumes across all three regions. In Asia/Pacific, sales increase due to higher sales volume but were partially offset by unfavourable price realisation and unfavourable currency impacts related primarily to the Japanese Yen. Construction Industries' segment profit was $1.8 billion in Q3 2026, an increase of $454 million or 33% compared to the same period a year before. Caterpillar said the increase was mainly due to higher sales volumes of $356 million and favourable price realisation of $349 million, although that was partially offset by unfavourable manufacturing costs to the tune of $252 million, including the impact of higher freight costs. For the group as a whole, operating profit for the third quarter was $4.2 billion, an increase of 38% on the third quarter of 2025. 'Our third-quarter results reflect the durability of our end markets, with strong order rates and a record backlog,' said Caterpillar chairman and CEO Joe Creed. 'Our team continues to execute our strategic priorities in a dynamic environment, positioning us for a strong year while delivering long-term value for our customers and shareholders.'