Caterpillar Inc. stock research
FY2026 Q1
Caterpillar (CAT) Gross Margin & Quarterly History
Explore Caterpillar Inc. (CAT) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Gross margin improved sequentially but weakened compared to the same quarter a year earlier. Revenue decreased from the prior quarter while cost of revenue fell more sharply, resulting in higher gross profit; year-over-year, revenue rose but cost of revenue grew at a faster pace, narrowing gross profit growth and reducing margin.
- The strongest observable margin driver is the relative movement of cost of revenue. Sequentially, cost of revenue declined more than revenue, which improved gross margin. Year-over-year, cost of revenue increased faster than revenue, which compressed margin.
- Sequentially, gross margin improved as revenue declined and cost of revenue decreased more sharply, leading to higher gross profit. Year-over-year, gross margin weakened as revenue increased but cost of revenue increased at a greater rate, resulting in a smaller increase in gross profit relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.1%
Gross profit
$6.1B
Revenue
$17.4B
Cost of revenue
$11.3B
Quarter-over-quarter change
+4.6 pts
Year-over-year change
-2.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $16.6B | $5.8B | $10.8B | 34.8% |
| Sep 30, 2025 | $17.6B | $6.0B | $11.7B | 33.8% |
| Dec 31, 2025 | $19.1B | $5.8B | $13.3B | 30.5% |
| Mar 31, 2026 | $17.4B | $6.1B | $11.3B | 35.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+4.6 pts
Year-over-year change
Mar 31, 2025
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative movement of cost of revenue. Sequentially, cost of revenue declined more than revenue, which improved gross margin. Year-over-year, cost of revenue increased faster than revenue, which compressed margin.
Sequentially, gross margin improved as revenue declined and cost of revenue decreased more sharply, leading to higher gross profit. Year-over-year, gross margin weakened as revenue increased but cost of revenue increased at a greater rate, resulting in a smaller increase in gross profit relative to revenue.
Monitor operating cash flow trends as noted in the filing's liquidity discussion.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Caterpillar Inc. (CAT) | 35.1% |