By Bob Tita

Caterpillar's operating profit fell by 9% last quarter from a year earlier, despite overall revenue rising. Tariffs were a big factor.

$800 million

That's how much levies cost the construction-excavator maker last quarter, making up the majority of a $1 billion increase in manufacturing costs. Furthermore, Caterpillar projects a big jump in tariff costs for 2026 and has been cutting production costs to compensate.

Caterpillar's price hikes for equipment have been restrained. Just $38 million in quarterly profit came from higher prices, despite the company generating $2.7 billion in operating profit.

Data centers' enormous appetite for electricity generators lifted Caterpillar's sales of power generation equipment by 44%.

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(END) Dow Jones Newswires

January 29, 2026 10:41 ET (15:41 GMT)

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