Caterpillar Q2 2025 Earnings Preview: Wall Street eyes EPS drop amid mixed demand signals

Caterpillar (NYSE:CAT) is scheduled to announce Q2 earnings results on Tuesday, August 5th, before market open.

Wall Street, on average, expects the construction and mining equipment company to post a quarterly EPS of $4.90 (-18.2% Y/Y) on revenue of $16.26B (-2.6% Y/Y).

In the first quarter, Caterpillar reported a double-digit drop in revenue and a sharp pullback in earnings, as lower dealer inventory buildup and softer pricing weighed on performance. .

Melius Research highlighted stronger-than-expected momentum in Caterpillar’s Engines & Transportation division, driven by surging demand from data center expansions tied to artificial intelligence infrastructure.

“The commoditization of AI “brains” will make physical engineering the key differentiator, where Caterpillar excels with its advanced, massive industrial robots,” pointed out a recent Seeking Alpha analysis.

Over the last 2 years, CAT has beaten EPS estimates 75% of the time and has beaten revenue estimates 38% of the time.

Over the last 3 months, EPS estimates have seen 5 upward revisions and 10 downward. Revenue estimates have seen 6 upward revisions and 3 downward.

Since the start of the year, CAT shares have risen 19%, compared to the 6% rise in the broader S&P 500 index (SP500).

Seeking Alpha’s Quant recommended the stock as a Hold, while the Wall Street analysts see the company as a Buy.

CAT shares were up 1% on Monday.