Caterpillar Inc (NYSE:CAT) shares are falling in Thursday’s after-hours session after the company warned of tariff impacts for the remainder of the year.
Review what is going on with CAT stock here.
What Happened: Caterpillar said in a regulatory filing that it now expects the net impact of incremental tariffs announced in 2025 to be between $500 million and $600 million in the third quarter. The company anticipates a total tariff-related impact of approximately $1.5 billion to $1.8 billion for 2025.
“Since the Company released its second quarter earnings on August 5, 2025, several additional clarifications and additional tariffs have been announced. These clarifications and additional tariffs will impact the Company's financial results for the third quarter and the remainder of 2025,” the company said in the filing.
The revised tariff impact is not expected to affect the company’s revenue outlook provided in its second-quarter report, but Caterpillar now expects its full-year adjusted operating profit margin to be near the bottom of its target margin range.
Is CAT A Good Stock To Buy?
An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.
For example, for Caterpillar, you'll notice that earnings in its last quarter contracted 3.48%. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.
On the valuation side, Caterpillar's price to earnings ratio — a measure of how much an investor pays for the company's earnings — has grown 51.61% in the current quarter when compared with last year. That places it above similar businesses Cummins, PACCAR, Westinghouse Air Brake in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.
There are many different valuation metrics that may help you make a decision. Find more on Caterpillar's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.
CAT Price Action: Caterpillar shares were down 3.43% in after-hours, trading at $420 at the time of publication Thursday, according to Benzinga Pro.
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