Caterpillar shares fall 8% on Q3 earnings; tariff recoveries and dealer destocking weigh

Caterpillar shares fell 8% after Q3 earnings. The beat was partly due to tariff recoveries. Excluding those, operating profit was in line. Dealer inventory cuts create a $1B headwind in Q4. Power & Energy demand is strong, with a record backlog and orders into 2030, but capacity and costs limit margin expansion.