Zacks Investment Research
12 Nov 2026, 09:15 UTC · 1h ago
CAT's Record $78B Backlog Signals Strength: Can Growth Continue?
Impact · against what's priced in
Caterpillar's updated guidance and record backlog provide direct evidence for the high-growth scenario the market currently rejects. By explicitly forecasting mid-to-high teens revenue growth for 2026, the company is validating the bull case that the backlog represents a sustained acceleration rather than a cyclical peak.
- CAT+0.40
Challenges what's priced in
- The price assumes
the assumption that the 79% year-over-year backlog increase converts into sustained high-teens revenue growth rather than pulling forward demand
The market is currently not paying for the thesis that the backlog converts into sustained high-teens growth; however, Caterpillar now explicitly anticipates 2026 sales and revenues to increase in the mid-to-high teens range.
What CAT's price assumes · Sep 3
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