Wells Fargo Boosts Caterpillar Price Target to $870; Q4 Revenue Jumps 18%
Wells Fargo raised Caterpillar’s price target to $870 from $756 and boosted its 2026-27 construction forecasts by 3%, citing strength in semiconductor fabrication and data center construction. Q4 revenues reached $19.1 billion, up 18%, supporting record annual sales of $67.6 billion, $9.5 billion in free cash flow and a $51 billion backlog, up 71%.
1. Wells Fargo Raises Price Target and Forecasts
Wells Fargo increased Caterpillar’s price target from $756 to $870 and lifted its 2026-27 construction forecasts by about 3%. The firm highlighted improving conditions in semiconductor fabrication and data center construction as key catalysts for its more bullish stance.
2. Strong Q4 Revenue and Record Annual Sales
Caterpillar reported Q4 2025 revenues of $19.1 billion, an 18% increase year-over-year, driving full-year sales to a record $67.6 billion. The company generated $9.5 billion in free cash flow, returned $7.9 billion to shareholders and saw its backlog rise to $51 billion, up 71%.
3. Segment Growth and Autonomous Fleet Expansion
Demand in the Power and Energy segment propelled power generation sales up 44% and equipment sales to end users up 37%. Caterpillar also expanded its autonomous haul truck fleet to 827 units from 690, underscoring its focus on technological innovation in mining operations.