Caterpillar (CAT) Stock Surges 7% on Wall Street Zen Upgrade Following Record Q4 Earnings
Caterpillar shares soared 7.1% after Wall Street Zen upgraded the stock from 'hold' to 'buy,' driven by a robust fourth-quarter performance. The industrial equipment giant opened at $726.38, nearing its 12-month peak of $727.40.
Q4 earnings per share reached $5.16, surpassing analyst estimates of $4.67, while revenue hit a quarterly record of $19.13 billion, up 17.9% year-over-year. The company reported a record backlog of $51.2 billion, fueled by demand for AI data center infrastructure, signaling a new revenue stream beyond traditional equipment cycles.
Insider sales of 120,747 shares worth $78.3 million, including CFO Andrew Bonfield's $5.75 million transaction, raised short-term concerns. Management projects 2026 revenue growth NEAR the upper end of its 5-7% target, though operating margins may face pressure from tariff costs.
