How does Caterpillar (CAT) make money?

Caterpillar (CAT) generates revenue primarily from Reportable Subsegments, which accounted for 60.8% of total revenue in TTM through Q1 2026. The company reported $70.75B in revenue and converted 13.3% of it into net profit, equivalent to roughly $9.42B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Caterpillar (CAT)?

Caterpillar (CAT) reported a gross profit margin of 32.5% in TTM through Q1 2026, equivalent to $23.01B in gross profit on $70.75B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Caterpillar (CAT)?

Caterpillar (CAT) reported an operating profit margin of 16.6% in TTM through Q1 2026, equivalent to $11.72B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Caterpillar (CAT)?

Caterpillar (CAT) reported a net profit margin of 13.3% in TTM through Q1 2026, equivalent to $9.42B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Caterpillar (CAT) profitable?

Yes. Caterpillar (CAT) reported $9.42B in net income for TTM through Q1 2026, with a net profit margin of 13.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Caterpillar (CAT) invest in research and development?

Caterpillar (CAT) invested $2.21B in research and development during TTM through Q1 2026, roughly 3.1% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Caterpillar (CAT) spend on capital expenditures?

Caterpillar (CAT) spent $870.00M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Caterpillar (CAT) generate?

Caterpillar (CAT) generated $11.45B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 16.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Caterpillar (CAT)?

Caterpillar (CAT) had an effective tax rate of 23.5% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Caterpillar (CAT)?

Caterpillar (CAT) reports revenue across 6 reportable product segments, led by Reportable Subsegments at 60.3% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Caterpillar (CAT) generate most of its revenue?

North America is the largest geographic market for Caterpillar (CAT), accounting for 55.3% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Caterpillar Makes Money: 2026 Visual Revenue Map

Caterpillar (CAT) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 6, 2026).

Caterpillar (CAT) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Caterpillar (CAT) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Reportable Subsegments	$42.66B	60.3%
Construction	$12.40B	17.5%
Energy and Transportation	$7.44B	10.5%
Resource	$6.14B	8.7%
Financial Products	$1.98B	2.8%
Other	$143.51M	0.2%
Total	$70.75B	100%

Reportable Subsegments$42.66B
Construction$12.40B
Energy and Transportation$7.44B
Resource$6.14B
Financial Products$1.98B
Other$143.51M
Total$70.75B

Caterpillar (CAT) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Caterpillar (CAT), TTM through Q1 2026
Region	Revenue (USD)	% of total
North America	$39.10B	55.3%
EMEA	$13.29B	18.8%
Asia Pacific	$11.29B	16%
Latin America	$7.07B	10%
Total	$70.75B	100%

North America
EMEA
Asia Pacific
Latin America
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Caterpillar (CAT) reports revenue across 6 operating segments; the largest segment was Reportable Subsegments at 60.3%, followed by Construction (17.5%) and Energy and Transportation (10.5%). Separately, by end-market geography, North America accounted for 55.3% of revenue, followed by EMEA (18.8%) and Asia Pacific (16%).

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