Caterpillar Q2 margin rebounds and raises 2026 sales and revenue outlook
Cost of sales rose 18% year over year in Q2 2026 due to higher manufacturing expenses, but higher sales volumes and favorable pricing more than offset the increase, lifting adjusted operating margin to 21.9%. Caterpillar also raised its 2026 outlook, expecting sales and revenues to grow in the mid-to-high teens, while targeting margin near the lower end of its range excluding tariff recoveries.