"Caterpillar's Q4 2025 revenue of $19.13 billion crushed the $16.2 billion consensus estimate, driven by a Power & Energy segment that grew 23% to $9.40 billion. Power generation alone surged 44% year-over-year on hyperscale data center buildouts. Caterpillar ended 2025 with a record $51 billion backlog, up 71% versus the prior year."
"Deere's Q1 fiscal 2026 revenue came in at $9.61 billion, up 13% year-over-year, and EPS of $2.42 beat the $2.10 estimate. But the Production & Precision Agriculture segment saw operating profit collapse 59% with margins falling to 4.4% from 11.0%, while Construction & Forestry operating profit more than doubled."
"Caterpillar faces $2.6 billion in incremental tariff costs in 2026, up from $1.7 billion net in 2025, compressing Construction Industries and Resource Industries margins even as Power & Energy thrives. Deere projects $1.2 billion in pretax tariff expense for 2026, with Construction & Forestry bearing the heaviest impact."
Caterpillar and Deere present contrasting narratives in recent earnings. Caterpillar posted record Q4 2025 revenue of $19.13 billion, significantly exceeding consensus, with its Power & Energy segment surging 23% to $9.40 billion driven by hyperscale data center buildouts. The company ended 2025 with a record $51 billion backlog, up 71% year-over-year. Deere's Q1 fiscal 2026 results show recovery signals despite agricultural headwinds, with revenue up 13% year-over-year and EPS beating estimates. However, Production & Precision Agriculture operating profit collapsed 59% as the U.S. and Canadian large agriculture market faces a 15-20% decline in 2026. Both companies face tariff pressures, with Caterpillar facing $2.6 billion in incremental costs and Deere projecting $1.2 billion in pretax tariff expense. Deere is investing $20 billion in U.S. manufacturing infrastructure.
Read at 24/7 Wall St.
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