Caterpillar Inc. Q2 Earnings Miss Estimates Despite Resilient Cash Flow

Caterpillar Inc. shares edged up 0.37% to $435.29 midday Tuesday after reporting second-quarter earnings that fell short of Wall Street expectations. The industrial giant posted adjusted EPS of $4.72, below the $4.90 consensus estimate, while revenue dipped 0.7% year-over-year to $16.57 billion.

Operating margins contracted significantly to 17.3% from 20.9% in the prior-year period, reflecting pricing pressures and cost inflation. Despite the earnings miss, the company demonstrated financial discipline by deploying $1.5 billion for shareholder returns through buybacks and dividends.

Market reaction remained tempered as investors balanced the earnings shortfall against Caterpillar's maintained cash generation capabilities. The machinery sector bellwether continues facing macroeconomic headwinds, though equipment sales to end users showed modest growth.