Shares of Caterpillar (CAT) tumbled 5% in pre-market trading on Wednesday following the release of disappointing first-quarter results that fell short of analyst expectations. The construction equipment giant reported softer demand amid growing economic uncertainty, signaling potential challenges ahead for the industrial sector.

Caterpillar's adjusted earnings per share for Q1 2025 came in at $4.25, missing the consensus estimate of $4.35 and marking a significant 24% decrease from the $5.60 reported in the same period last year. Revenue also disappointed, falling to $14.2 billion, well below the expected $14.66 billion and representing a 9.81% year-over-year decline.

Looking ahead, Caterpillar provided a cautious outlook for the second quarter. The company expects Q2 2025 sales and revenues to be similar to those of Q2 2024, while anticipating a lower adjusted operating profit margin compared to the previous year. This guidance, coupled with the weaker-than-expected Q1 results, has likely contributed to the stock's pre-market plunge as investors reassess the company's near-term growth prospects in light of the challenging economic environment.