Wells Fargo Turns More Bullish on Caterpillar (CAT) Amid Improving Industrial and Data Center Trends

Caterpillar Inc. (NYSE:CAT) is included among the 13 Best Long-Term Dividend Stocks to Invest successful Right Now.

On February 25, Wells Fargo raised its terms proposal connected Caterpillar Inc. (NYSE:CAT) to $870 from $756. It reiterated an Overweight standing connected the shares. The steadfast accrued its backstage non-residential operation forecasts by astir 3% for 2026 and 2027. Its investigation points to improving conditions crossed respective cardinal areas. Wells Fargo sees signs of stabilization successful semiconductor fabrication and electronics manufacturing, arsenic good arsenic successful bureau and retail construction. It besides expects stronger maturation successful powerfulness and information halfway construction.

During Caterpillar’s Q4 2025 net call, CEO Joseph Creed described the company’s Centennial twelvemonth arsenic a large milestone. He said full-year income and revenues reached $67.6 billion, the highest level successful Caterpillar’s history. He besides noted that the institution generated $9.5 cardinal successful MP&E escaped currency travel and returned $7.9 cardinal to shareholders. Backlog accrued to a grounds $51 billion, marking a 71% summation from the erstwhile year.

Creed said quarterly income and revenues totaled $19.1 billion. This marked the strongest quarterly show connected grounds and represented an 18% summation compared with the anterior year. Growth was supported by higher volumes crossed each concern segments. Demand was particularly beardown successful the Power and Energy segment. Sales to extremity users accrued by 37%, portion powerfulness procreation roseate by 44%.

He besides reported a full-year adjusted operating nett borderline of 17.2%. Adjusted net per stock reached $19.06. The institution expanded its autonomous haul motortruck fleet to 827 units by the extremity of 2025, up from 690 units a twelvemonth earlier. Creed added that powerfulness procreation income exceeded $10 cardinal for the year. This reflected a maturation of much than 30% compared with 2024.

Caterpillar Inc. manufactures operation and mining equipment, on with diesel and earthy state engines, concern state turbines, and diesel-electric locomotives. The institution operates done its Construction Industries, Resource Industries, and Power and Energy segments. It besides provides financing and related services done its Financial Products division.

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