Caterpillar Misses Earnings Estimates Despite Revenue Beat

Caterpillar (NYSE:CAT) reported second-quarter 2025 earnings that missed Wall Street expectations, even as revenue came in slightly above consensus forecasts.

The industrial machinery giant posted adjusted earnings of $4.72 per share, falling short of analyst estimates of $4.90. Revenue totaled $16.6 billion, just above the $16.27 billion estimate but down 1% from $16.7 billion in the same quarter a year earlier.

Operating profit margin declined to 17.3% from 20.9%, while adjusted operating margin dropped to 17.6% from 22.4%. The company cited unfavorable manufacturing costs—driven largely by elevated tariffs—as the primary factor behind the margin pressure.

By business segment, Construction Industries revenue declined 7% year-over-year to $6.19 billion, with profit falling 29% to $1.24 billion. Resource Industries revenue decreased 4% to $3.09 billion, while segment profit dropped 25%. The Energy & Transportation segment was a bright spot, with sales rising 7% to $7.84 billion and segment profit up 4% to $1.59 billion.