Stock-Split Watch: Is Caterpillar Next?
Key Points
Caterpillar has split its stock five times since 1976.
Shares have outperformed the S&P 500 since this time last year.
Caterpillar stock is down about 23% from its 52-week high.
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Soaring more than 76% over the past year as of this writing, Caterpillar (NYSE: CAT) stock has given investors a lot to celebrate, especially compared to the 17% rise in the S&P 500 (SNPINDEX: ^GSPC). Couple the strong performance with the fact that shares of the industrials stalwart touched an all-time high in late June, closing over $1,064, and it's clear that Caterpillar stock has gained investors' attention.
Since the stock has performed so well, many investors may now be wondering if management has plans to add Caterpillar to the list of upcoming stock splits. It wouldn't be so novel for the company, considering it has split its stock five times over the past 50 years -- the last time being in 2005.
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What helped to move Caterpillar stock higher?
There were a variety of catalysts for Caterpillar's strong performance over the past year. For one, investors responded positively to the company's financial reporting. Booking 2025 revenue of $67.6 billion -- a company record -- Caterpillar reported year-over-year sales growth of 4%. The company also closed 2025 well-positioned for future growth, reporting a backlog of $51 billion, also a company high-water mark.
Midway through this year, Caterpillar continued to report strong financial results. In the second quarter of 2026, Caterpillar reported $20.5 billion in revenue, a 24% increase over the same period last year, and a 92% year-over-year increase in backlog to $72 billion. In addition, the company's strong cash flow provided further encouragement. Caterpillar reported free cash flow of $5.1 billion, a 118% year-over-year increase.
Stock splits may seem exciting -- but don't be fooled
Believing there's an auspicious opportunity to seize, some investors will look for upcoming stock splits, thinking that if they buy shares before a forward split, they will prosper. In their minds, owning more shares after the stock split is a more advantageous position.
Savvy investors, though, recognize the flaw in this belief. In the same way that breaking a $10 bill into 1,000 pennies doesn't make you any wealthier than holding the lone $10 bill, you wouldn't be in a more fortuitous position owning more shares of a stock after a forward stock split than you would've been before the stock split.
Don't expect a Caterpillar stock split
According to recent research from The Motley Fool, Caterpillar is one of the largest industrial companies by market cap, not just in the United States but worldwide. For this reason -- and many others -- investors like to watch the company closely.
Caterpillar stock has provided early investors with strong returns over the past year. Still, it's highly unlikely that management will choose to split the company's stock in the near future, with shares trading around $820 -- down 23% from their 52-week high. Though some may be disappointed by this likelihood, Caterpillar still commands attention from those seeking a conservative industrial stock to fortify their portfolios.
Should you buy stock in Caterpillar right now?
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.
