Why Did Caterpillar (CAT) Plunge 3.85% Ahead of Earnings?

On August 5, 2025, Caterpillar's stock experienced a significant drop of 3.85% in pre-market trading, reflecting investor concerns and market sentiment ahead of its second-quarter earnings release.

Caterpillar is scheduled to announce its second-quarter earnings results on August 5, 2025, before the market opens. Wall Street analysts anticipate that the company will report earnings of $4.9 per share, with revenue projected at $16.22 billion for the quarter ending June 30. However, there are mixed signals regarding demand, which could impact the company's performance.

Despite the overall positive market sentiment driven by strong corporate earnings and AI-driven gains, Caterpillar faces challenges due to projected declines in earnings and flat sales for the second quarter. The company's earnings are expected to drop by 30%, which has contributed to the recent volatility in its stock price.