Solid 2Q26 Beat & Raise With Record Backlog and 1.5x Book-to-Bill Underpinning Continued Strength

Research evidence excerpt

Solid 2Q26 Beat & Raise With Record Backlog and 1.5x Book-to-Bill Underpinning Continued Strength

Update

August 4, 2026 11:38 AM GMT

Morgan Stanley & Co. LLCMCaterpillar Inc | North America Angel Castillo

Equity Analyst

Solid 2Q26 Beat & Raise With Angel.Castillo@morganstanley.comStefan Diaz, CFA +1 212 761-1931

Stefan.Diaz@morganstanley.com +1 212 761-1834

Record Backlog and 1.5x Book- Esther O Osinaiya

Research Associate

Esther.Osinaiya@morganstanley.com +1 212 761-3176

to-Bill Underpinning Continued Oliver Jiang

Oliver.Jiang@morganstanley.com +1 212 761-6458

Strength

Caterpillar Inc (CAT.N, CAT US)

Machinery & Construction | United States of America

AlphaSignals Earnings Reaction

Stock Rating Equal-weight

Unchanged Meaningful upside Meaningful revision higher Industry View Attractive

Impact to our thesis Financial results versus consensus Direction of next 12-month Price target $915.00

consensus EPS Shr price, close (Aug 3, 2026) $830.03

Mkt cap, curr (mm) $382,488

Source: Company data, Morgan Stanley Research 52-Week Range $1,073.46-406.23

Key Takeaways

2Q26 Adj. EPS of $8.17 (including ~$1.45 of one time benefits and lower tariff

costs) beat vs. MSe of $6.60 / cons of $6.10.

Raised FY26 revenue guide to "mid-to-high teens growth" from "low double digits"

vs. MSe 15.2% and cons +13.1%.

Guided to adj. operating profit margin still near the bottom end of the target

range when excluding IEEPA tariff recoveries.

Stock Reaction: Expect a positive stock reaction to the beat & raise that we think

delivered on bulls expectations with another record backlog and book to bill.

See below for notable takeaways from CAT's earnings release. For a more

detailed variance table of results vs. expectations see Exhibit 1 and guidance

update summary table in Exhibit 2 .

• (+) 2Q26 Adj.