Caterpillar Stock Soars After Strong Q3, Upgraded Guidance

Caterpillar's stock jumped to all-time intraday and closing highs on Oct. 29, rallying roughly 12–13% in a single session and becoming one of the biggest contributors to the Dow. The move followed stronger-than-expected third-quarter results: revenue rose about 9.5% to $17.64 billion and adjusted EPS of $4.95 topped estimates. All three business segments posted gains, led by Energy & Transportation, where power-generation sales tied to AI data-center construction helped push backlog to a record $39.8 billion, up $11.2 billion year-over-year. Management said tariff costs were at the high end of its outlook and will exceed prior estimates (above $1.5 billion), but higher volumes and pricing largely offset those headwinds and supported margins. Caterpillar updated guidance, saying it now expects full-year 2025 revenue to be modestly higher year-over-year and anticipates stronger fourth-quarter growth, reversing a prior slightly down outlook.