Cat Financial Reports Second-Quarter 2026 Results
Rhea-AI Summary
Cat Financial (NYSE: CAT) reported second-quarter 2026 revenues of $991 million, up 10% from $899 million a year earlier, driven mainly by higher average earning assets. Profit was $145 million, a 6% increase, while profit before income taxes rose 13% to $206 million, reflecting a $44 million benefit from higher earning assets partly offset by a $22 million higher provision for credit losses.
The estimated annual tax rate increased to 28% from 25%, primarily due to changes in geographic profit mix. Retail new business volume reached $3.92 billion, up 9% with growth across all segments. Past dues improved to 1.31% from 1.62%, and net write-offs were $20 million versus $18 million. At June 30, 2026, the allowance for credit losses was $294 million, or 0.84% of finance receivables. For the first six months of 2026, revenues rose 10% to $1.94 billion and profit increased 8% to $289 million; total assets grew 6% to $40.46 billion.
Positive
- Q2 2026 revenues up 10% to $991 million
- Q2 profit before income taxes up 13% to $206 million
- Six-month 2026 profit up 8% to $289 million
- Q2 retail new business volume up 9% to $3.92 billion
- Past dues ratio improved to 1.31% from 1.62%
- Total assets up 6% year over year to $40.46 billion
Negative
- Higher tax rate increased to 28% from 25%
- Provision for credit losses increased by $22 million impact
- Net write-offs rose to $20 million from $18 million
Market reaction after 2Q26 earnings report: CAT +8.67%
Following this news, CAT has gained 8.67%, reflecting a notable positive market reaction. Our momentum scanner has triggered 21 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $902.02.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 21 | earnings date notice | Neutral | +3.0% | Company announced the scheduled release date for second-quarter financial results. |
| Jul 07 | acquisition announcement | Positive | -3.1% | Skycatch acquisition expanded Caterpillar's mining technology capabilities and digital operations portfolio. |
| Jul 02 | workforce investment | Positive | -2.8% | Caterpillar launched a five-year workforce initiative with up to $5 million initially allocated. |
| Jun 22 | power agreement exposure | Positive | +3.7% | Caterpillar's Solar Turbines participated in a 20-year West Texas data-center power agreement. |
| Jun 10 | dividend increase | Positive | +4.8% | Quarterly dividend increased by $0.12, or 8%, to $1.63 per share. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Two positive historical events aligned with gains, while two positive events diverged with declines; the neutral scheduling item also had a gain.
Key Terms
average earning assets financial
provision for credit losses financial
past dues financial
allowance for credit losses financial
finance receivables financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second-quarter 2026 profit before income taxes was
As of June 30, 2026 and 2025, the estimated annual tax rate was 28 percent and 25 percent, respectively. The increase in the estimated annual tax rate was primarily due to changes in the geographic mix of profits.
During the second quarter of 2026, retail new business volume was
At the end of the second quarter of 2026, past dues were
"Cat Financial delivered another solid quarter, with continued strong retail new business volume and strong portfolio performance," said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "The Cat Financial team remains committed to executing our strategy and delivering financial services solutions that support Caterpillar customers and dealers."
About Cat Financial
Cat Financial is a subsidiary of Caterpillar, the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Cat Financial provides a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® turbines, genuine Cat parts and services. Headquartered in
STATISTICAL HIGHLIGHTS:
SECOND-QUARTER 2026 VS. SECOND-QUARTER 2025 (ENDED JUNE 30, EXCEPT TOTAL ASSETS) (Millions of dollars) | |||||
2026 | 2025 | CHANGE | |||
Revenues | $ 991 | $ 899 | 10 % | ||
Profit Before Income Taxes | $ 206 | $ 183 | 13 % | ||
Profit (excluding profit attributable to noncontrolling interests) | $ 145 | $ 137 | 6 % | ||
Retail New Business Volume | $ 3,916 | $ 3,599 | 9 % | ||
Total Assets at June 30, and December 31, respectively | $ 40,457 | $ 38,313 | 6 % | ||
SIX MONTHS 2026 VS. SIX MONTHS 2025 (ENDED JUNE 30) (Millions of dollars) | |||||
2026 | 2025 | CHANGE | |||
Revenues | $ 1,938 | $ 1,759 | 10 % | ||
Profit Before Income Taxes | $ 401 | $ 357 | 12 % | ||
Profit (excluding profit attributable to noncontrolling interests) | $ 289 | $ 267 | 8 % | ||
Retail New Business Volume | $ 7,106 | $ 6,563 | 8 % | ||
FORWARD-LOOKING STATEMENTS
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Cat Financial's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (ii) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (iii) changes in interest rates, currency fluctuations or market liquidity conditions; (iv) an increase in delinquencies, repossessions or net losses of our customers; (v) used equipment values and estimated residual values of leased equipment; (vi) our compliance with financial and other restrictive covenants in debt agreements; (vii) government monetary or fiscal policies; (viii) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (ix) demand for Caterpillar products; (x) marketing, operational or administrative support received from Caterpillar; (xi) our ability to develop, produce and market quality products that meet our customers' needs; (xii) information technology security threats and computer crime; (xiii) alleged or actual violations of trade or anti-corruption laws and regulations; (xiv) new regulations or changes in financial services regulations; (xv) additional tax expense or exposure; (xvi) changes in accounting guidance; (xvii) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xviii) other factors described in more detail in Cat Financial's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
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SOURCE Cat Financial