CATERPILLAR INC, 10-K filed on 2/13/2026
Annual Report
v3.25.4
Cover Page
$ in Billions
 12 Months Ended
Dec. 31, 2025
USD ($)
shares
Entity Information [Line Items]  
Document Type 10-K
Document Annual Report true
Document Period End Date Dec. 31, 2025
Document Transition Report false
Entity File Number 1-768
Entity Registrant Name CATERPILLAR INC
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 37-0602744
Entity Address, Address Line One 5205 N. O'Connor Boulevard,
Entity Address, Address Line Two Suite 100,
Entity Address, City or Town Irving,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75039
City Area Code 972
Local Phone Number 891-7700
Entity Well-known Seasoned Issuer Yes
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
ICFR Auditor Attestation Flag true
Document Financial Statement Error Correction false
Entity Shell Company false
Entity Public Float | $ $ 180.9
Entity Common Stock, Shares Outstanding | shares 465,287,332
Entity Central Index Key 0000018230
Amendment Flag false
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2025
Document Fiscal Period Focus FY
Documents Incorporated by Reference
Documents Incorporated by Reference
 
Portions of the documents listed below have been incorporated by reference into the indicated parts of this Form 10-K, as specified in the responses to the item numbers involved.
 
Part III
2026 Annual Meeting Proxy Statement (Proxy Statement) to be filed with the Securities and Exchange Commission (SEC) within 120 days after the end of the fiscal year.
Common Stock ($1.00 par value)  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock ($1.00 par value)
Trading Symbol CAT
Security Exchange Name NYSE
5.3% Debentures due September 15, 2035  
Entity Information [Line Items]  
Title of 12(b) Security 5.3% Debentures due September 15, 2035
Trading Symbol CAT35
Security Exchange Name NYSE
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Dallas, Texas
Auditor Firm ID 238
v3.25.4
Consolidated Results of Operations for the Years Ended December 31 - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Sales and revenues:      
Total sales and revenues $ 67,589 $ 64,809 $ 67,060
Operating costs:      
Cost of goods sold 44,752 40,199 42,767
Selling, general and administrative expenses 6,985 6,667 6,371
Research and development expenses 2,148 2,107 2,108
Other operating (income) expenses 1,194 1,478 1,818
Total operating costs 56,438 51,737 54,094
Operating profit 11,151 13,072 12,966
Other income (expense) 892 813 595
Consolidated profit before taxes 11,541 13,373 13,050
Provision (benefit) for income taxes 2,768 2,629 2,781
Profit of consolidated companies 8,773 10,744 10,269
Equity in profit (loss) of unconsolidated affiliated companies 109 44 63
Profit of consolidated and affiliated companies 8,882 10,788 10,332
Less: comprehensive income (loss) attributable to the noncontrolling interests (2) (4) (3)
Profit (loss) [1] $ 8,884 $ 10,792 $ 10,335
Profit per common share (in dollars per share) $ 18.90 $ 22.17 $ 20.24
Profit per common share - diluted (in dollars per share) [2] $ 18.81 $ 22.05 $ 20.12
Weighted-average common shares outstanding (millions)      
Basic (in shares) 470.0 486.7 510.6
Diluted (in shares) [2] 472.3 489.4 513.6
Machinery, Power & Energy      
Sales and revenues:      
Total sales and revenues $ 63,980 $ 61,363 $ 63,869
Financial Products      
Sales and revenues:      
Total sales and revenues 3,609 3,446 3,191
Operating costs:      
Interest expense of Financial Products 1,359 1,286 1,030
All other excluding Financial Products      
Operating costs:      
Interest expense excluding Financial Products $ 502 $ 512 $ 511
[1] Profit attributable to common shareholders.
[2] Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
v3.25.4
Consolidated Comprehensive Income (Loss) for the Years Ended December 31 - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Profit of consolidated and affiliated companies $ 8,882 $ 10,788 $ 10,332
Other comprehensive income (loss), net of tax      
Foreign currency translation, net of tax 557 (528) 546
Pension and other postretirement benefits, net of tax (9) (12) (10)
Derivative financial instruments: 85 (113) 39
Available-for-sale securities, net of tax 66 2 62
Total other comprehensive income (loss), net of tax 699 (651) 637
Comprehensive income (loss) 9,581 10,137 10,969
Less: comprehensive income (loss) attributable to the noncontrolling interests (2) (4) (3)
Comprehensive income (loss) attributable to shareholders $ 9,583 $ 10,141 $ 10,972
v3.25.4
Consolidated Financial Position at December 31 - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 9,980 $ 6,889
Receivables – trade and other 10,920 9,282
Receivables – finance 10,649 9,565
Prepaid expenses and other current assets 2,801 3,119
Inventories 18,135 16,827
Total current assets 52,485 45,682
Property, plant and equipment - net 15,140 13,361
Long-term receivables – trade and other 2,142 1,225
Long-term receivables – finance 14,272 13,242
Noncurrent deferred and refundable income taxes 2,882 3,312
Intangible assets 241 399
Goodwill 5,321 5,241
Other assets 6,102 5,302
Total assets 98,585 87,764
Short-term borrowings:    
Short-term borrowings 5,514 4,393
Accounts payable 8,968 7,675
Accrued expenses 5,587 5,243
Accrued wages, salaries and employee benefits 2,554 2,391
Customer advances 3,314 2,322
Dividends payable 703 674
Other current liabilities 2,798 2,909
Long-term debt due within one year:    
Total current liabilities 36,558 32,272
Long-term debt due after one year:    
Liability for postemployment benefits 3,838 3,757
Other liabilities 6,175 4,890
Total liabilities 77,267 68,270
Commitments and contingencies
Shareholders’ equity    
Common stock, par value (in dollars per share) $ 1.00 $ 1.00
Authorized shares: 2,000,000,000 Issued shares: (2025 and 2024 – 814,894,624 shares) at paid-in amount $ 7,181 $ 6,941
Treasury stock: (2025 - 349,607,292 shares; and 2024 - 336,962,600 shares) at cost (49,539) (44,331)
Profit employed in the business 65,448 59,352
Accumulated other comprehensive income (loss) (1,772) (2,471)
Noncontrolling interests 0 3
Total shareholders’ equity 21,318 19,494
Total liabilities and shareholders’ equity 98,585 87,764
Machinery, Power & Energy    
Short-term borrowings:    
Short-term borrowings 0 0
Long-term debt due within one year:    
Long-term debt due within one year 35 46
Long-term debt due after one year:    
Long-term debt due after one year 10,678 8,564
Financial Products    
Short-term borrowings:    
Short-term borrowings 5,514 4,393
Long-term debt due within one year:    
Long-term debt due within one year 7,085 6,619
Long-term debt due after one year:    
Long-term debt due after one year $ 20,018 $ 18,787
v3.25.4
Consolidated Financial Position at December 31 (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 1.00 $ 1.00
Common stock, issued (in shares) 814,894,624 814,894,624
Common stock, authorized (in shares) 2,000,000,000 2,000,000,000
Treasury stock (in shares) 349,607,292 336,962,600
v3.25.4
Changes in Consolidated Shareholders' Equity for the Years Ended December 31 - USD ($)
$ in Millions
Total
Common stock
Treasury stock
Profit employed in the business
Accumulated other comprehensive income (loss)
Noncontrolling interests
Beginning balance at Dec. 31, 2022 $ 15,891 $ 6,560 $ (31,748) $ 43,514 $ (2,457) $ 22
Increase (Decrease) in Stockholders' Equity            
Profit of consolidated and affiliated companies 10,332     10,335   (3)
Foreign currency translation, net of tax 546       546  
Pension and other postretirement benefits, net of tax (10)       (10)  
Derivative financial instruments, net of tax 39       39  
Available-for-sale securities, net of tax 62       62  
Change in ownership from noncontrolling interests (7)         (7)
Dividends declared (2,599)     (2,599)    
Common shares issued from treasury stock for stock-based compensation 12 (112) 124      
Stock-based compensation expense 208 208        
Common shares repurchased (4,675)   (4,675)      
Outstanding authorized accelerated share repurchase (300) (300)        
Other 4 47 (40)     (3)
Ending balance at Dec. 31, 2023 19,503 6,403 (36,339) 51,250 (1,820) 9
Increase (Decrease) in Stockholders' Equity            
Profit of consolidated and affiliated companies 10,788     10,792   (4)
Foreign currency translation, net of tax (528)       (528)  
Pension and other postretirement benefits, net of tax (12)       (12)  
Derivative financial instruments, net of tax (113)       (113)  
Available-for-sale securities, net of tax 2       2  
Dividends declared (2,690)     (2,690)    
Common shares issued from treasury stock for stock-based compensation 20 (58) 78      
Stock-based compensation expense 223 223        
Common shares repurchased (7,997)   (7,997)      
Outstanding authorized accelerated share repurchase 300 300        
Other (2) 73 (73)     (2)
Ending balance at Dec. 31, 2024 19,494 6,941 (44,331) 59,352 (2,471) 3
Increase (Decrease) in Stockholders' Equity            
Profit of consolidated and affiliated companies 8,882     8,884   (2)
Foreign currency translation, net of tax 557       557  
Pension and other postretirement benefits, net of tax (9)       (9)  
Derivative financial instruments, net of tax 85       85  
Available-for-sale securities, net of tax 66       66  
Dividends declared [1] (2,788)     (2,788)    
Common shares issued from treasury stock for stock-based compensation (16) (47) 31      
Stock-based compensation expense 242 242        
Common shares repurchased [2] (5,190)   (5,190)      
Other (5) 45 (49)     (1)
Ending balance at Dec. 31, 2025 $ 21,318 $ 7,181 $ (49,539) $ 65,448 $ (1,772) $ 0
[1] Dividends per share of common stock of $5.94, $5.53 and $5.10 were declared in the years ended December 31, 2025, 2024 and 2023, respectively.
[2] See Note 16 regarding shares repurchased.
v3.25.4
Changes in Consolidated Shareholders' Equity for the Years Ended December 31 (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]      
Common shares issued from treasury stock for stock-based compensation (in shares) 1,433,723 1,972,037 2,497,799
Common shares repurchased (in shares) 14,078,415 23,417,282 19,466,020
Dividends per share declared (in dollars per share) $ 5.94 $ 5.53 $ 5.10
v3.25.4
Consolidated Statement of Cash Flow for the Years Ended December 31 - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flow from operating activities:      
Profit of consolidated and affiliated companies $ 8,882 $ 10,788 $ 10,332
Adjustments to reconcile profit to net cash provided by operating activities:      
Depreciation and amortization 2,262 2,153 2,144
Actuarial (gain) loss on pension and postretirement benefits (294) (154) (97)
Provision (benefit) for deferred income taxes 465 (621) (592)
(Gain) loss on divestiture 30 164 572
Other 742 564 375
Changes in assets and liabilities, net of acquisitions and divestitures:      
Receivables – trade and other (2,138) (160) (437)
Inventories (1,477) (414) (364)
Accounts payable 1,179 (282) (754)
Accrued expenses 438 191 796
Accrued wages, salaries and employee benefits 187 (363) 486
Customer advances 1,933 370 80
Other assets – net (176) (97) (95)
Other liabilities – net (294) (104) 439
Net cash provided by (used for) operating activities 11,739 12,035 12,885
Cash flow from investing activities:      
Capital expenditures – excluding equipment leased to others (2,821) (1,988) (1,597)
Expenditures for equipment leased to others (1,465) (1,227) (1,495)
Proceeds from disposals of leased assets and property, plant and equipment 708 722 781
Additions to finance receivables (15,329) (15,409) (15,161)
Collections of finance receivables 13,515 13,608 14,034
Proceeds from sale of finance receivables 71 83 63
Investments and acquisitions (net of cash acquired) (47) (34) (75)
Proceeds from sale of businesses and investments (net of cash sold) 22 (61) (4)
Proceeds from maturities and sale of securities 2,494 3,155 1,891
Investments in securities (1,930) (1,495) (4,405)
Other – net 75 193 97
Net cash provided by (used for) investing activities (4,707) (2,453) (5,871)
Cash flow from financing activities:      
Dividends paid (2,749) (2,646) (2,563)
Common stock issued, and other stock compensation transactions, net (16) 20 12
Payments to purchase common stock (5,190) (7,697) (4,975)
Excise tax paid on purchases of common stock (73) (40) 0
Short-term borrowings – net (original maturities three months or less) 1,106 (168) (1,345)
Other – net (1) (1) 0
Net cash provided by (used for) financing activities (3,899) (9,565) (6,932)
Effect of exchange rate changes on cash (43) (106) (110)
Increase (decrease) in cash, cash equivalents and restricted cash 3,090 (89) (28)
Cash, cash equivalents and restricted cash at beginning of period 6,896 6,985 7,013
Cash, cash equivalents and restricted cash at end of period 9,986 6,896 6,985
Machinery, Power & Energy      
Cash flow from financing activities:      
Proceeds from debt issued (original maturities greater than three months): 1,976 0 0
Payments on debt (original maturities greater than three months): (51) (1,032) (106)
Financial Products      
Cash flow from financing activities:      
Proceeds from debt issued (original maturities greater than three months): 9,129 10,283 8,257
Payments on debt (original maturities greater than three months): $ (8,030) $ (8,284) $ (6,212)
v3.25.4
Operations and summary of significant accounting policies
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Operations and summary of significant accounting policies Operations and summary of significant accounting policies
A. Nature of operations

Information in our financial statements and related commentary are presented in the following categories:
 
Machinery, Power & Energy (MP&E) – We define MP&E as Caterpillar Inc. and its subsidiaries, excluding Financial Products. MP&E's information relates to the design, manufacturing and marketing of our products.
 
Financial Products – We define Financial Products as our finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
 
We sell our products primarily under the brands “Caterpillar,” “CAT,” design versions of “CAT” and “Caterpillar,” “EMD,” “FG Wilson,” “MWM,” “Perkins,” “Progress Rail,” “SEM” and “Solar Turbines.”
 
We conduct operations in our MP&E line of business under highly competitive conditions, including intense price competition. We place great emphasis on the high quality and performance of our products and our dealers’ service support. Although no one competitor is believed to produce all of the same types of equipment that we do, there are numerous companies, large and small, which compete with us in the sale of each of our products.
 
We distribute our machines principally through a worldwide organization of dealers (dealer network), 41 located in the United States and 109 located outside the United States, serving 190 countries.  We sell reciprocating engines principally through the dealer network and to other manufacturers for use in products. We also sell some of the reciprocating engines manufactured by our subsidiary Perkins Engines Company Limited through its worldwide network of 86 distributors covering 183 countries. We sell the FG Wilson branded electric power generation systems through its worldwide network of 108 distributors covering 159 countries.  Our dealers do not deal exclusively with our products; however, in most cases sales and servicing of our products are the dealers’ principal business. We sell some products, primarily turbines and locomotives, to end customers through sales forces employed by the company. At times, these employees are assisted by independent sales representatives.
 
The Financial Products line of business also conducts operations under highly competitive conditions. Financing for users of Caterpillar products is available through a variety of competitive sources, principally commercial banks and finance and leasing companies. We offer various financing, insurance and risk management products designed to support sales of our products and generate financing income for our company. We conduct a significant portion of Financial Products activity in North America, with additional offices in Latin America, Asia/Pacific, Europe and Africa.
 B. Basis of presentation

The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest.

Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method.

We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE.

Cat Financial has end-user customers and dealers that are VIEs of which we are not the primary beneficiary. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.
We include shipping and handling costs in Cost of goods sold in Statement 1.  Other operating (income) expenses primarily include Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses, employee separation charges, long-lived asset impairment charges, (gains) losses on divestitures and (gains) losses on disposal of long-lived assets.
 
Prepaid expenses and other current assets in Statement 3 primarily include investments in debt and equity securities, prepaid and refundable income taxes, right of return assets, contract assets, prepaid insurance, assets held for sale, core to be returned for remanufacturing, and restricted cash and other short-term investments.

Long-term receivables - trade and other in Statement 3 includes $377 million at December 31, 2025, for recoveries from over-payments made during the importation process. At December 31, 2024, the amount was inconsequential.

Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation.
C.     Inventories
 
We state inventories at the lower of cost or net realizable value. We principally determine cost using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 70 percent and 65 percent of total inventories at December 31, 2025 and 2024, respectively.
 
If the FIFO (first-in, first-out) method had been in use, inventories would have been $4,305 million and $3,864 million higher than reported at December 31, 2025 and 2024, respectively.
D.    Depreciation and amortization
 
We compute depreciation of plant and equipment principally using accelerated methods. We compute depreciation on equipment leased to others, primarily for Financial Products, using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2025, 2024 and 2023, Cat Financial depreciation on equipment leased to others was $699 million, $722 million and $713 million, respectively, which we include in Other operating (income) expenses in Statement 1. In 2025, 2024 and 2023, consolidated depreciation expense was $2,093 million, $1,983 million and $1,929 million, respectively. We compute amortization of purchased finite-lived intangibles principally using the straight-line method, generally not to exceed a period of 20 years.
E.    Foreign currency translation
 
The functional currency for most of our MP&E consolidated subsidiaries is the U.S. dollar. The functional currency for most of our Financial Products consolidated subsidiaries is the respective local currency.  We include gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency in Other income (expense) in Statement 1. We include gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars in Accumulated other comprehensive income (loss) (AOCI) in Statement 3.
F.    Derivative financial instruments
 
Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates, commodity prices and certain deferred compensation plan liabilities.  Our Risk Management Policy allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts, commodity forward and option contracts and total return swap contracts. All derivatives are recorded at fair value.  See Note 4 for more information.
G.    Income taxes
 
We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions.  Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year.  Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid.  We adjust deferred taxes for enacted changes in tax rates and tax laws.  We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 6 for further discussion.
H.    Goodwill
 
For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired.  We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances make it more likely than not that an impairment may have occurred.  A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition.  Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units.  When changes occur in the composition of our operating segments or reporting units, we reassign goodwill to the affected reporting units based on their relative fair values. 

We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis.  We review goodwill for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test.  If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary.  For reporting units where we perform the quantitative goodwill impairment test, we compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill.  If the fair value of the reporting unit exceeds its carrying value, we do not consider the goodwill impaired.  If the carrying value is higher than the fair value, we would recognize the difference as an impairment loss. See Note 10 for further details.
I.    Estimates in financial statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets, fair values for goodwill impairment tests, warranty liability and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes.
J.    New accounting guidance
 
A. Adoption of new accounting standards

Income tax reporting (ASU 2023-09) — In December 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. The expanded disclosures were effective for the year ending December 31, 2025, and are being applied prospectively. See Note 6, Income taxes, for additional information.

All other ASUs effective January 1, 2025, were assessed and determined that they either were not applicable or did not have a material impact on our financial statements.
B. Accounting standards issued but not yet adopted

Disaggregation of income statement expenses (ASU 2024-03) — In November 2024, the FASB issued accounting guidance to enhance transparency into the nature and function of income statement expenses. The amendments require that, on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation and amortization. The expanded annual disclosures are effective for our year ending December 31, 2027, and the expanded interim disclosures are effective in 2028, with early adoption permitted. We are in the process of evaluating the effect of this new guidance on the related disclosures.

Internal-use software costs (ASU 2025-06) — In September 2025, the FASB issued accounting guidance to modernize the accounting for internal-use software costs. Under this guidance, capitalization for internal-use software costs begins when management has authorized and committed to funding the project and it is probable the project will be completed, and the software will be used to perform the intended function. This guidance is effective January 1, 2028, with early adoption permitted, and can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. We are in the process of evaluating the effect of this new guidance on our financial statements.

All other ASUs issued but not yet adopted were assessed and determined that they either were not applicable or were not expected to have a material impact on our financial statements.
v3.25.4
Sales and revenue recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Sales and revenue recognition Sales and revenue recognition
A. Sales of Machinery, Power & Energy

We recognize sales of MP&E when all the following criteria are satisfied: (i) a contract with an independently owned and operated dealer or an end user exists which has commercial substance; (ii) it is probable we will collect the amount charged to the dealer or end user; and (iii) we have completed our performance obligation whereby the dealer or end user has obtained control of the product. A contract with commercial substance exists once we receive and accept a purchase order under a dealer sales agreement, or once we enter into a contract with an end user. If collectibility is not probable, the sale is deferred and not recognized until collection is probable or payment is received. Control of our products typically transfers when title and risk of ownership of the product has transferred to the dealer or end user. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when we ship the product. Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country.

Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products.  In this business, we inspect, clean and remanufacture used engines and related components (core).  In connection with the sale of our remanufactured product to dealers, we collect a deposit that is repaid if the dealer returns an acceptable core within a specified time period.  Caterpillar owns and has title to the cores when they are returned from dealers.  The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and end users.  We recognize revenue pursuant to the same transfer of control criteria as MP&E sales noted above.  At the time of sale, we recognize the deposit in Other current liabilities in Statement 3, and we recognize the core to be returned as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with usable cores).  Upon receipt of an acceptable core, we repay the deposit and relieve the liability.  We then transfer the returned core asset into inventory. In the event that the deposit is forfeited (i.e., upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. 

We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products.  The most common dealer programs provide a discount when the dealer sells a product to a targeted end user.  Generally, we estimate the cost of these discounts for each product by model by geographic region based on historical experience and known changes in merchandising programs. We report the cost of these discounts as a reduction to the transaction price when we recognize the product sale. We accrue a corresponding post-sale discount reserve in Statement 3, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, we report the difference as a change in the transaction price in the subsequent period when the final discount is paid. As a result of differences between actual and estimated payments and changes in estimates, we recognized a decrease in revenue of $497 million during 2025, related to prior period sales. Products sold to dealers in a prior period that remained in dealer inventory during 2025 were subject to merchandising program actions taken in 2025 which resulted in higher discounts paid in the current year. The change in revenue during 2024 related to prior periods sales was inconsequential.
Except for replacement parts, no right of return exists on the sale of our products.  We estimate replacement part returns based on historical experience and recognize a parts return asset in Prepaid expenses and other current assets in Statement 3, which represents our right to recover replacement parts we expect will be returned. We also recognize a refund liability in Accrued expenses in Statement 3 for the refund we expect to pay for returned parts. If actual replacement part returns differ from those estimated, we recognize the difference in the estimated replacement part return asset and refund liability in Cost of goods sold and Sales, respectively.

Trade receivables represent amounts due from dealers and end users for the sale of our products, and include amounts due from wholesale inventory financing provided by Cat Financial for a dealer's purchase of inventory. See Note 7 for further information. We recognize trade receivables from dealers and end users in Receivables – trade and other and Long-term receivables – trade and other in Statement 3. Trade receivables from dealers and end users were $9,402 million, $7,864 million and $7,923 million as of December 31, 2025, 2024 and 2023, respectively. Long-term trade receivables from dealers and end users were $1,006 million, $640 million and $589 million as of December 31, 2025, 2024 and 2023, respectively.

Our standard dealer invoice terms are established by marketing region. Our invoice terms for end user sales are established by the responsible business unit. Payments from dealers are due shortly after the time of sale. When we make a sale to a dealer, the dealer is responsible for payment even if the product is not sold to an end user. Dealers and end users must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. Regular credit evaluations of our dealers and end users are performed. Collateral generally is not required, and the majority of our trade receivables are unsecured. Various devices, such as security agreements and letters of credit, are used to protect our interests, when deemed necessary. No single dealer or end user represents a significant concentration of credit risk. Our allowance for credit losses is not significant for MP&E receivables.

For certain contracts, we invoice for payment when contractual milestones are achieved. We recognize a contract asset when a sale is recognized before achieving the contractual milestone for invoicing. We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable. Contract assets are included in Prepaid expenses and other current assets in Statement 3. Contract assets were $297 million, $238 million and $246 million as of December 31, 2025, 2024 and 2023, respectively.

We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in Statement 3. Contract liabilities were $4,678 million, $2,745 million and $2,389 million as of December 31, 2025, 2024 and 2023, respectively. We reduce the contract liability when we recognize revenue. During 2025, we recognized $1,894 million of revenue that was recorded as a contract liability at the beginning of 2025. During 2024, we recognized $1,591 million of revenue that was recorded as a contract liability at the beginning of 2024.

We have elected the practical expedient to not adjust the amount of revenue to be recognized under a contract with a dealer or end user for the effects of time value of money when the timing difference between receipt of payment and recognition of revenue is less than one year.

As of December 31, 2025, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $30.1 billion, with about one-third of the amount expected to be completed and revenue recognized in the twelve months following December 31, 2025. We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts.

We exclude sales and other related taxes from the transaction price. We account for shipping and handling costs associated with outbound freight after control over a product has transferred as a fulfillment cost which is included in Cost of goods sold.

We provide a standard manufacturer’s warranty of our products at no additional cost. At the time we recognize a sale, we record estimated future warranty costs. See Note 21 for further discussion of our product warranty liabilities.

See Note 23 for further disaggregated sales and revenues information.
B. Revenues of Financial Products

Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. We record finance revenue over the life of the related finance receivables using the interest method, including the accretion of certain direct origination costs that are deferred. Operating lease revenue is recorded on a straight-line basis over the term of the lease.
We suspend recognition of finance revenue and operating lease revenue and place an account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue, and recognize previously suspended income, when we consider collection of remaining amounts to be probable. Payments received while a finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. We write off interest earned but uncollected prior to the receivables being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible. See Note 7 for more information.
v3.25.4
Stock-based compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-based compensation Stock-based compensation
 
Our stock-based compensation plans primarily provide for the granting of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stock’s price when the option was granted. RSUs are agreements to issue shares of Caterpillar stock at the time of vesting. PRSUs are similar to RSUs and include performance conditions in the vesting terms of the award.
 
Our long-standing practices and policies specify that the Compensation Committee (the Committee) of the Board of Directors approve all stock-based compensation awards.  The award approval process specifies the grant date, value and terms of the award.  We consistently apply the same terms and conditions to all employee grants, including Officers. The Committee approves all individual Officer grants.  We determine the number of stock-based compensation award units included in an individual’s award based on the methodology approved by the Committee. The exercise price methodology approved by the Committee is the closing price of the Company stock on the date of the grant. In June of 2014, shareholders approved the Caterpillar Inc. 2014 Long-Term Incentive Plan (the 2014 Plan) under which all new stock-based compensation awards were granted. In June of 2023, shareholders approved the Caterpillar Inc. 2023 Long-Term Incentive Plan (the 2023 Plan), which superseded and replaced the 2014 Plan.
 
Common stock issued from Treasury stock under the plans totaled 1,433,723 for 2025, 1,972,037 for 2024 and 2,497,799 for 2023. The total number of shares authorized for equity awards under the 2023 Plan is 42,500,000. As of December 31, 2025, 39,336,515 shares remained available for issuance, which includes shares returned to the 2023 Plan upon cancellation or shares withheld for taxes incurred in connection with issuance or vesting of grants made under the 2014 Plan.
 
Stock option and RSU awards generally vest according to a three-year graded vesting schedule. One-third of the award will become vested on the first anniversary of the grant date, one-third of the award will become vested on the second anniversary of the grant date and one-third of the award will become vested on the third anniversary of the grant date. PRSU awards generally have a three-year performance period and cliff vest at the end of the period based upon achievement of performance targets established at the time of grant.

Upon separation from service, if the participant is 55 years of age or older with more than five years of service, the participant meets the criteria for a “Long Service Separation.”  Award terms for stock option and RSU grants allow for continued vesting as of each vesting date specified in the award document for employees who meet the criteria for a “Long Service Separation” and fulfill a requisite service period of six months.  We recognize compensation expense for eligible employees for the grants over the period from the grant date to the end date of the six-month requisite service period.  For employees who become eligible for a “Long Service Separation” subsequent to the end date of the six-month requisite service period and prior to the completion of the vesting period, we recognized compensation expense over the period from the grant date to the date eligibility is achieved.
  
Award terms for PRSU grants allow for continued vesting upon achievement of the performance target specified in the award document for employees who meet the criteria for a “Long Service Separation” and fulfill a requisite service period of six months. We recognize compensation expense for the PRSU grants with respect to employees who have met the criteria for a “Long Service Separation” over the period from the grant date to the end of the six-month requisite service period. For employees who become eligible for a “Long Service Separation” subsequent to the end date of the six-month requisite service period and prior to the completion of the vesting period, we recognize compensation expense over the period from the grant date to the date eligibility is achieved.
 
At grant, option awards have a term life of ten years.  For awards granted prior to 2016, if the “Long Service Separation” criteria are met, the vested options have a life that is the lesser of ten years from the original grant date or five years from the separation date.  For awards granted beginning in 2016, the vested options have a life equal to ten years from the original grant date.

Accounting guidance on share-based payments requires companies to estimate the fair value of options on the date of grant using an option-pricing model.  The fair value of our option grants was estimated using the Black-Scholes option-pricing model.  The Black-Scholes option-pricing model considers a range of assumptions related to volatility, risk-free interest rate and historical employee behavior.  Expected volatility was based on historical Caterpillar stock price movement and current implied volatilities from traded options on Caterpillar stock. The risk-free interest rate was based on U.S. Treasury security yields at the time of grant. The weighted-average dividend yield was based on historical information.  We determine the expected life from the actual historical employee exercise behavior. The following table provides the assumptions used in determining the fair value of the option awards for the years ended December 31, 2025, 2024 and 2023, respectively:

 Grant Year
 202520242023
Weighted-average dividend yield2.13 %2.40 %2.60 %
Weighted-average volatility30.5 %30.7 %31.0 %
Range of volatilities
26.6%-32.6%
26.3%-32.3%
28.5%- 35.5%
Range of risk-free interest rates
4.13%-4.4%
4.28%-5.03%
3.92%-5.03%
Weighted-average expected lives7 years7 years7 years
 
We credit RSU and PRSU awards with dividend equivalent units on each date that we pay a cash dividend to holders of common stock. The dividend equivalent units are forfeitable if the associated award is forfeited. Therefore, the RSU and PSRUs, as well as dividend equivalent units are not treated as participating securities for earnings per share. We determine the fair value of the RSU awards granted in 2025, 2024 and 2023 as the closing stock price on the date of the grant.

The PRSUs granted in 2025 and 2024 contain a market condition and a Monte Carlo simulation was utilized to estimate the fair value of the awards. The following table provides the assumptions used in determining the fair value of the PRSUs granted in 2025 and 2024, respectively:

 Grant Year
 20252024
Expected volatility of the Company's stock29.5%29.8%
Risk-free interest rate3.90%4.38%

We determine the fair value of the PRSU awards granted in 2023 as the closing stock price on the date of the grant.
Please refer to Tables I and II below for additional information on our stock-based compensation awards.  

TABLE I — Financial Information Related to Stock-based Compensation
 Stock options
 SharesWeighted-
 Average
 Exercise
 Price		Weighted-Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value 1
    
Outstanding at January 1, 2025
3,732,862 $195.28 
Granted to officers and key employees299,523 $331.62 
Exercised(997,947)$159.25 
Forfeited / expired(17,385)$232.23 
Outstanding at December 31, 2025
3,017,053 $220.52 5.81$1,063 
Exercisable at December 31, 2025
2,279,192 $192.44 5.02$867 
1    The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2025, for awards with market price greater than the exercise price. Amounts are in millions of dollars.

 RSUsPRSUs
 SharesWeighted-
Average
Grant Date Fair Value		SharesWeighted-
Average
Grant Date Fair Value
    
Outstanding at January 1, 2025
776,637 $284.36 390,013 $321.58 
Granted to officers and key employees530,834 $357.02 203,491 $345.60 
Vested(403,533)$259.27 (220,897)$253.98 
Forfeited / expired(25,108)$316.72 (8,323)$326.09 
Outstanding at December 31, 2025
878,830 $338.27 364,284 $374.52 

The computations of weighted-average exercise prices and aggregate intrinsic values are not applicable to RSUs or PRSUs since these awards represent an agreement to issue shares of stock at the time of vesting.  At December 31, 2025, there were 878,830 outstanding RSUs with a weighted average remaining vesting period of 1.7 years and 364,284 outstanding PRSUs with a weighted-average remaining vesting period of 1.5 years.
 
TABLE II— Additional Stock-based Award Information
(Dollars in millions except per share data)202520242023
Stock options activity:   
Weighted-average fair value per share of stock awards granted$106.04 $104.27 $75.79 
Intrinsic value of stock awards exercised$298 $354 $356 
Fair value of stock awards vested 1
$46 $56 $53 
Cash received from stock awards exercised$82 $113 $98 
RSUs activity:   
Weighted-average fair value per share of stock awards granted$357.02 $338.65 $252.24 
Fair value of stock awards vested 2
$136 $144 $126 
PRSUs activity:   
Weighted-average fair value per share of stock awards granted$345.60 $408.64 $251.97 
Fair value of stock awards vested 2
$127 $94 $80 
1 Based on the grant date fair value.
2 Based on the underlying stock’s closing market price on the vesting date.

In accordance with guidance on share-based payments, stock-based compensation expense is based on the grant date fair value and is classified within Cost of goods sold, Selling, general and administrative expenses and Research and development expenses corresponding to the same line item as the cash compensation paid to respective employees, officers and non-employee directors. We recognize stock-based compensation expense on a straight-line basis over the requisite service period for awards with terms that specify cliff or graded vesting and contain only service conditions. Stock-based compensation expense for PRSUs is based on the probable number of shares expected to vest and is recognized primarily on a straight-line basis.

Before tax, stock-based compensation expense for 2025, 2024 and 2023 was $242 million, $223 million and $208 million, respectively, with a corresponding income tax benefit of $38 million, $30 million and $33 million, respectively.

The amount of stock-based compensation expense capitalized for the years ended December 31, 2025, 2024 and 2023 did not have a significant impact on our financial statements.
 
At December 31, 2025, there was $209.1 million of total unrecognized compensation cost from stock-based compensation arrangements granted under the plans, which is related to non-vested stock-based awards.  We expect to recognize the compensation expense over a weighted-average period of approximately 1.9 years.

We currently use shares in Treasury stock to satisfy share award exercises.
 
The cash tax benefits realized from stock awards exercised for 2025, 2024 and 2023 were $81 million, $90 million and $89 million, respectively. We use the direct only method and tax law ordering approach to calculate the tax effects of stock-based compensation.
v3.25.4
Derivative Financial Instruments and Risk Management
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative financial instruments and risk management Derivative financial instruments and risk management
 
Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates, commodity prices and certain deferred compensation plan liabilities.  Our Risk Management Policy allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability exposures.  Our policy specifies that derivatives are not to be used for speculative purposes.  Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts, commodity forward and option contracts and total return swap contracts.  Our derivative activities are subject to the management, direction and control of our senior financial officers.  We present at least annually to the Audit Committee of the Board of Directors on our risk management practices, including our use of financial derivative instruments.
 
We recognize all derivatives at their fair value in Statement 3. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument. We record in current earnings changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk. For foreign exchange contracts designated as fair value hedges, the interim settlements are excluded from the effectiveness assessment and are recognized under a systematic and rational method over the life of the hedging instrument within Interest expense. We record in AOCI changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, in Statement 3 until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings.  We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged on Statement 5.  We include cash flows from undesignated derivative financial instruments in the investing category on Statement 5.
 
We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions.  This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in Statement 3 and linking cash flow hedges to specific forecasted transactions or variability of cash flow.
 
We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items.  When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting.
 
A.Foreign currency exchange rate risk
 
Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates.
 
Our MP&E operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to approximately five years. As of December 31, 2025, the maximum term of these outstanding contracts at inception was approximately 60 months.
 
We generally designate as cash flow hedges at inception of the contract any foreign currency forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. We perform designation on a specific exposure basis to support hedge accounting. The remainder of MP&E foreign currency contracts are undesignated.
 
In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. We designate float-to-float cross currency contracts as fair value hedges to protect against movements in exchange rates on floating-rate assets and liabilities.
 
B.Interest rate risk
 
Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes.
 
Our MP&E operations generally use fixed-rate debt as a source of funding.  Our objective is to minimize the cost of borrowed funds.  Our policy allows us to enter into fixed-to-floating interest rate contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract.
Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of Cat Financial’s debt portfolio with the interest rate profile of our receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move.
 
Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective.  We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate.  We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate.

If we liquidate fixed-to-floating or floating-to-fixed interest rate contracts at MP&E or Financial Products, we amortize any deferred gains or losses into earnings over the remaining term of the previously hedged item.
 
C.Commodity price risk
 
Commodity price movements create a degree of risk by affecting the price we must pay for certain raw materials. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials.
 
Our MP&E operations purchase base and precious metals embedded in the components we purchase from suppliers.  Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use.
 
Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated.

D. Deferred compensation plan liability risk
 
We are also exposed to variability in compensation expense related to certain non-qualified deferred compensation obligations to employees. We utilize total return swaps to economically hedge this exposure to offset the related compensation expense. All such total return swap contracts are undesignated.

The location and fair value of derivative instruments reported in Statement 3 were as follows: 

(Millions of dollars)Fair Value
December 31, 2025December 31, 2024
Assets 1
Liabilities 2
Assets 1
Liabilities 2
Designated derivatives
Foreign exchange contracts$364 $(147)$357 $(275)
Interest rate contracts59 (99)10 (201)
Total$423 $(246)$367 $(476)
Undesignated derivatives
Foreign exchange contracts$62 $(75)$91 $(56)
Commodity contracts10 (2)4 (6)
Total return swap contracts1 (2)— (33)
Total$73 $(79)$95 $(95)
1 Assets are classified as Receivables - trade and other or Long-term receivables - trade and other.
2 Liabilities are classified as Accrued expenses or Other liabilities.
The total notional amounts of the derivative instruments as of December 31, 2025 and 2024 were $29.3 billion and $27.0 billion, respectively. The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates, commodity prices or certain deferred compensation plan liabilities.

Gains (losses) on derivative instruments are categorized as follows:

(Millions of dollars)Years ended December 31,
Gains (Losses) Recognized in Statement 11
Gains (Losses) Recognized in AOCI
Gains (Losses) Reclassified from AOCI2
202520242023202520242023202520242023
Cash Flow Hedges
Foreign exchange contracts$— $— $— $156 $53 $39 $55 $168 $(58)
Interest rate contracts— — — 16 11 9 6 39 55 
Fair Value Hedges
Foreign exchange contracts— — — (9)— — (8)— — 
Interest rate contracts(69)(139)(135)— — — — — — 
Undesignated Hedges
Foreign exchange contracts(65)162 12 — — — — — — 
Commodity contracts26 (10)10 — — — — — — 
Total return swap contracts118 40 — — — — — — — 
Total$10 $53 $(113)$163 $64 $48 $53 $207 $(3)
1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.
2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

The following amounts were recorded in Statement 3 related to cumulative basis adjustments for fair value hedges:

(Millions of dollars)Years ended December 31,
Carrying Value of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities
2025202420252024
Long-term debt due within one year$602 $483 $3 $(16)
Long-term debt due after one year5,513 5,327 (37)(170)
Total$6,115 $5,810 $(34)$(186)

We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within MP&E and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements may also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment.

Collateral is typically not required of the counterparties or of our company under the master netting agreements. As of December 31, 2025 and 2024, no cash collateral was received or pledged under the master netting agreements.
The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows:

(Millions of dollars)December 31, 2025December 31, 2024
AssetsLiabilitiesAssetsLiabilities
Gross Amounts Recognized$496 $(325)$462 $(571)
Financial Instruments Not Offset(160)160 (186)186 
Net Amount$336 $(165)$276 $(385)
v3.25.4
Other income (expense)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Other income (expense) Other income (expense)
 
 Years ended December 31,
(Millions of dollars)202520242023
Investment and interest income$416 $482 $494 
Foreign exchange gains (losses) 1 
(168)71 (96)
License fee income143 142 146 
Gains (losses) on securities30 39 11 
Net periodic pension and OPEB income (cost), excluding service cost
343 

165 47 
Miscellaneous income (loss)128 (86)(7)
Total$892 $813 $595 
1 Includes gains (losses) from foreign exchange derivative contracts.  See Note 4 for further details.
v3.25.4
Income taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
As described in Note 1J, New accounting guidance, we have elected to prospectively adopt the guidance in ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09.

Reconciliation of the U.S. federal statutory tax rate to effective tax rate:

Year ended December 31,
(Millions of dollars)2025
Taxes at U.S. statutory tax rate$2,424 21.0 %
(Decreases)/increases resulting from:
Non-U.S. tax effects
Switzerland
Federal statutory tax rate difference(310)(2.7)%
State and local income taxes, net of federal160 1.4 %
Other(27)(0.2)%
Other Non-U.S. jurisdictions342 3.0 %
Other179 1.5 %
Provision (benefit) for income taxes$2,768 24.0 %
The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the years ended December 31, 2024 and December 31, 2023 prior to the adoption of the guidance in ASU 2023-09.

Reconciliation of the U.S. federal statutory tax rate to effective tax rate:

Years ended December 31,
(Millions of dollars)20242023
Taxes at U.S. statutory rate$2,809 21.0 %$2,740 21.0 %
(Decreases) increases resulting from:    
Non-U.S. subsidiaries taxed at other than the U.S. rate186 1.4 %129 1.0 %
U.S. tax incentives(245)(1.8)%(170)(1.3)%
Tax law change related to currency translation(224)(1.7)%— — %
Other—net103 0.8 %82 0.6 %
Provision (benefit) for income taxes$2,629 19.7 %$2,781 21.3 %
 
The provision for income taxes for 2024 included a non-cash tax benefit of $224 million due to the reversal of a deferred tax liability from a U.S. tax law change related to currency translation. Included in the line item above labeled “Non-U.S. subsidiaries taxed at other than the U.S. rate” are the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances and other permanent differences between tax and U.S. GAAP results.
The components of profit (loss) before taxes were: 
 Years ended December 31,
(Millions of dollars)202520242023
U.S.$5,407 $6,219 $6,463 
Non-U.S.6,134 7,154 6,587 
 $11,541 $13,373 $13,050 
  
The components of the provision (benefit) for income taxes were:
 Years ended December 31,
(Millions of dollars)202520242023
Current tax provision (benefit):   
U.S. Federal1
$804 $1,584 $1,627 
Non-U.S.1,390 1,531 1,592 
U.S. State and local109 135 154 
 2,303 3,250 3,373 
Deferred tax provision (benefit):   
U.S. Federal1
393 (553)(391)
Non-U.S.56 (69)(164)
U.S. State and local16 1 (37)
 465 (621)(592)
Total provision (benefit) for income taxes$2,768 $2,629 $2,781 
1 Includes U.S. taxes related to non-U.S. earnings. We account for U.S. taxes on global intangible low-taxed income as a period cost.
 
We paid net income tax and related interest of $2,206 million, $3,126 million and $2,949 million in 2025, 2024 and 2023, respectively.

In accordance with the guidance in ASU 2023-09, net income tax and related interest paid in 2025 to the following jurisdictions were:

Income tax and related interest paid (net of refunds received) to:
 December 31,
(Millions of dollars)2025
U.S. Federal$605 
U.S. State and local138 
Non-U.S.1
Switzerland500 
China264 
Brazil135 
India128 
Other436 
Net income tax and related interest paid$2,206 
1 Includes federal, state and local jurisdictions within each country.
Accounting for income taxes under U.S. GAAP requires that individual tax-paying entities of the company offset all deferred tax liabilities and assets within each particular tax jurisdiction and present them as a noncurrent deferred tax liability or asset in the Consolidated Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amount of deferred income taxes at December 31, included on the following lines in Statement 3, were as follows:
 
 December 31,
(Millions of dollars)20252024
Assets:  
Noncurrent deferred and refundable income taxes$2,757 $3,191 
Liabilities:  
Other liabilities494 432 
Deferred income taxes—net$2,263 $2,759 
 
The components of deferred tax assets and liabilities were:
 December 31,
(Millions of dollars)20252024
Deferred income tax assets:  
Research expenditures$1,399 $1,735 
Tax carryforwards1,298 1,346 
Employee compensation and benefits607 531 
Postemployment benefits425 560 
Post sale discounts303 260 
Warranty reserves287 303 
Other—net579 622 
 4,898 5,357 
Deferred income tax liabilities:  
Capital and intangible assets, including lease basis differences(1,366)(1,270)
Outside basis differences(429)(454)
 (1,795)(1,724)
Valuation allowance for deferred tax assets(840)(874)
Deferred income taxes—net$2,263 $2,759 
 
At December 31, 2025, deferred tax assets for U.S. state and local losses and credit carryforwards of $72 million expire on or before the end of 2045 while the remaining $14 million may be carried over indefinitely. Of these U.S. state and local deferred tax assets, $52 million were reduced by valuation allowances. The deferred tax assets for U.S. federal losses and credit carryforwards of $174 million primarily expire on or before the end of 2035. Of these U.S. federal deferred tax assets, $171 million were reduced by valuation allowances. Deferred tax assets for losses and credit carryforwards of non-U.S. entities of $274 million expire on or before the end of 2045 while the remaining $764 million may be carried over indefinitely. Non-U.S. entities that have not demonstrated consistent and/or sustainable profitability to support the realization of net deferred tax assets, including certain entities in Luxembourg, have recorded valuation allowances of $617 million against tax carryforwards and other deferred tax assets.

Distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible primarily due to our legal entity structure and the complexity of U.S. and local tax laws.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, follows.

 
Reconciliation of unrecognized tax benefits: 1
 Years ended December 31,
(Millions of dollars)202520242023
Beginning balance$1,289 $1,223 $1,140 
Additions for tax positions related to current year68 118 94 
Additions for tax positions related to prior years35 49 42 
Reductions for tax positions related to prior years(6)(30)(19)
Reductions for settlements 2 
(29)(60)(27)
Reductions for expiration of statute of limitations(10)(11)(7)
Ending balance$1,347 $1,289 $1,223 
Amount that, if recognized, would impact the effective tax rate$1,199 $1,137 $997 

1Foreign currency impacts are included within each line as applicable.
2Includes cash payment or other reduction of assets to settle liability.

We classify interest and penalties on income taxes as a component of the provision for income taxes. We recognized a net provision for interest and penalties of $67 million, $35 million and $36 million during the years ended December 31, 2025, 2024 and 2023, respectively. The total amount of interest and penalties accrued was $268 million and $190 million as of December 31, 2025 and 2024, respectively.

We are subject to the continuous examination of our U.S. federal income tax returns by the Internal Revenue Service, and tax years 2017 to 2019 are currently under examination. In our major non-U.S. jurisdictions, tax years are typically subject to examination for three to ten years.
v3.25.4
Cat Financial Financing Activities
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Cat Financial Financing Activities Cat Financial financing activities
 
Wholesale inventory receivables
 
Wholesale inventory receivables are receivables of Cat Financial that arise when Cat Financial provides financing for a dealer’s purchase of inventory and were $2,169 million and $1,750 million, at December 31, 2025 and 2024, respectively. We include these receivables in Receivables—trade and other and Long-term receivables—trade and other in Statement 3.
 
Contractual maturities of outstanding wholesale inventory receivables:
(Millions of dollars)December 31, 2025
Amounts Due InWholesale
Loans		Wholesale
Leases		Total
2026$1,128 $30 $1,158 
2027497 21 518 
2028256 15 271 
202991 9 100 
203039 5 44 
Thereafter17 1 18 
Total2,028 81 2,109 
Guaranteed residual value 1
39 22 61 
Unguaranteed residual value 1
9 21 30 
Less: Unearned income(22)(9)(31)
Total$2,054 $115 $2,169 
1 For Wholesale loans, represents residual value on failed sale leasebacks.
 
Cat Financial’s wholesale inventory receivables generally may be repaid or refinanced without penalty prior to contractual maturity.

Please refer to Note 18 for fair value information.
Finance receivables
 
Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses.

Contractual maturities of outstanding finance receivables:
(Millions of dollars)December 31, 2025
Amounts Due InRetail
Loans		Retail
Leases		Total
2026$8,372 $2,561 $10,933 
20274,992 1,740 6,732 
20283,324 1,052 4,376 
20291,779 566 2,345 
2030687 207 894 
Thereafter149 54 203 
Total19,303 6,180 25,483 
Guaranteed residual value 1
7 429 436 
Unguaranteed residual value 1
8 528 536 
Less: Unearned income(642)(663)(1,305)
Total$18,676 $6,474 $25,150 
1 For Retail loans, represents residual value on failed sale leasebacks.

Cat Financial’s finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity.

Please refer to Note 18 for fair value information.
Allowance for credit losses
 
Portfolio segments
A portfolio segment is the level at which Cat Financial develops a systematic methodology for determining its allowance for credit losses. Cat Financial's portfolio segments and related methods for estimating expected credit losses are as follows:

Customer
Cat Financial provides loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use. Cat Financial also provides financing for power generation facilities that incorporate Caterpillar products. The average original term of Cat Financial's customer finance receivables portfolio was approximately 51 months with an average remaining term of approximately 28 months as of December 31, 2025.

Cat Financial typically maintains a security interest in financed equipment and generally requires physical damage insurance coverage on the financed equipment, both of which provide Cat Financial with certain rights and protections. If Cat Financial's collection efforts fail to bring a defaulted account current, Cat Financial generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions.

Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors.

During the year ended December 31, 2025, Cat Financial's forecasts reflected a continuation of global market uncertainty and actions by global central banks aimed at balancing economic growth and managing inflation. Cat Financial believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends.

Dealer
Cat Financial provides financing to Caterpillar dealers on a secured and unsecured basis in the form of wholesale financing plans and retail loans. Cat Financial's wholesale financing plans provide financing to dealers for their new Caterpillar equipment inventory and rental fleets. The retail loans to dealers are primarily for working capital.
    
Cat Financial estimates the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts.

In general, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength. Therefore, Cat Financial made no adjustments to historical loss rates during the year ended December 31, 2025.

Classes of finance receivables
Cat Financial further evaluates portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Cat Financial's classes, which align with management reporting for credit losses, are as follows:

•North America — Finance receivables originated in the United States and Canada.
•EAME — Finance receivables originated in Europe, Africa, the Middle East and Eurasia.
•Asia/Pacific — Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India.
•Latin America — Finance receivables originated in Mexico and Central and South American countries.
•Mining — Finance receivables originated worldwide related to large mining customers worldwide.
•Power — Finance receivables originated worldwide related to large power customers of Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems.

Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). The amount of the write-off is primarily determined by comparing the fair value of the collateral, less estimated selling costs, to the amortized cost of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received.
An analysis of the allowance for credit losses was as follows:

(Millions of dollars)December 31, 2025December 31, 2024
CustomerDealerTotalCustomerDealerTotal
Allowance for Credit Losses:   
Beginning balance$258 $4 $262 $276 $51 $327 
Write-offs(148)— (148)(125)(47)(172)
Recoveries47 — 47 57 — 57 
Provision for credit losses1
109 — 109 84 — 84 
Other7 — 7 (34)— (34)
Ending balance$273 $4 $277 $258 $4 $262 
Finance Receivables$23,635 $1,515 $25,150 $21,517 $1,512 $23,029 
1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.

Gross write-offs by origination year for the Customer portfolio segment were as follows:
(Millions of dollars)
Year Ended December 31, 2025
20252024202320222021PriorRevolving Finance ReceivablesTotal
North America$3 $15 $27 $12 $8 $4 $8 $77 
EAME1 5 7 3 2 1 1 20 
Asia/Pacific2 6 3 2 1 — — 14 
Latin America1 3 3 5 2 1 — 15 
Mining— 8 6 6 — 1 — 21 
Power— — — — — 1 — 1 
Total$7 $37 $46 $28 $13 $8 $9 $148 
Year Ended December 31, 2024
20242023202220212020PriorRevolving Finance ReceivablesTotal
North America$2 $19 $13 $6 $3 $1 $9 $53 
EAME1 4 5 4 2 1 — 17 
Asia/Pacific1 4 5 4 1 1 — 16 
Latin America— 3 6 5 3 8 — 25 
Mining8 3 3 — — — — 14 
Total$12 $33 $32 $19 $9 $11 $9 $125 

All $47 million of gross write-offs in the Dealer portfolio segment for the year ended December 31, 2024 were in Latin America and originated prior to 2020.
Credit quality of finance receivables
At origination, Cat Financial evaluates credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, Cat Financial monitors credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, Cat Financial considers the entire finance receivable past due when any installment is over 30 days past due.
Customer
The aging analysis of Cat Financial's Customer portfolio segment by origination year was as follows:

      
 (Millions of dollars)December 31, 2025
20252024202320222021PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$5,531 $3,634 $1,845 $743 $318 $20 $510 $12,601 
31-60 days past due30 42 28 18 6 1 4 129 
61-90 days past due11 14 10 5 3 — 2 45 
91+ days past due11 34 29 20 8 3 1 106 
EAME
Current1,551 929 614 316 114 44 — 3,568 
31-60 days past due5 12 6 6 2 — — 31 
61-90 days past due3 5 3 2 1 — — 14 
91+ days past due5 9 12 6 3 2 — 37 
Asia/Pacific
Current996 571 290 104 25 1 — 1,987 
31-60 days past due5 8 3 1 — — — 17 
61-90 days past due2 3 1 2 — — — 8 
91+ days past due1 1 2 2 — — — 6 
Latin America
Current984 511 212 96 15 1 4 1,823 
31-60 days past due3 6 5 3 — — — 17 
61-90 days past due2 2 2 1 — 1 — 8 
91+ days past due1 10 7 4 1 — — 23 
Mining
Current765 698 484 278 106 46 — 2,377 
31-60 days past due3 — — — — — — 3 
61-90 days past due— — — — — — — — 
91+ days past due1 1 8 — — — — 10 
Power
Current168 250 179 37 8 35 148 825 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — — — — 
Totals by Aging Category
Current9,995 6,593 3,624 1,574 586 147 662 23,181 
31-60 days past due46 68 42 28 8 1 4 197 
61-90 days past due18 24 16 10 4 1 2 75 
91+ days past due19 55 58 32 12 5 1 182 
Total Customer$10,078 $6,740 $3,740 $1,644 $610 $154 $669 $23,635 
      
 (Millions of dollars)December 31, 2024
20242023202220212020PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$5,340 $3,035 $1,567 $980 $244 $23 $385 $11,574 
31-60 days past due30 42 29 18 5 1 3 128 
61-90 days past due9 14 10 6 2 1 1 43 
91+ days past due13 37 26 16 6 2 1 101 
EAME
Current1,235 874 532 285 92 72 — 3,090 
31-60 days past due7 10 4 3 1 — — 25 
61-90 days past due3 4 1 1 1 — — 10 
91+ days past due3 14 8 6 4 1 — 36 
Asia/Pacific
Current898 531 256 87 14 2 — 1,788 
31-60 days past due4 6 5 2 — — — 17 
61-90 days past due1 1 2 1 — — — 5 
91+ days past due4 1 2 1 1 — — 9 
Latin America
Current800 363 220 60 8 2 — 1,453 
31-60 days past due4 6 5 1 — 2 — 18 
61-90 days past due1 2 1 — — — — 4 
91+ days past due2 6 8 4 1 1 — 22 
Mining
Current924 755 444 206 67 34 21 2,451 
31-60 days past due— 1 — — — — — 1 
61-90 days past due— 1 — — — — — 1 
91+ days past due4 5 5 1 — 3 — 18 
Power
Current169 184 39 43 64 56 166 721 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 2 — 2 
Totals by Aging Category
Current9,366 5,742 3,058 1,661 489 189 572 21,077 
31-60 days past due45 65 43 24 6 3 3 189 
61-90 days past due14 22 14 8 3 1 1 63 
91+ days past due26 63 49 28 12 9 1 188 
Total Customer$9,451 $5,892 $3,164 $1,721 $510 $202 $577 $21,517 

Dealer
As of December 31, 2025 and 2024, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current.
Non-accrual finance receivables
Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. Contracts on non-accrual status are generally more than 120 days past due. Recognition is resumed and previously suspended income is recognized when collection is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible.

In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income as of December 31, were as follows:

   
December 31, 2025December 31, 2024
 Amortized CostAmortized Cost
 (Millions of dollars)
Non-accrual 91+ Still
Accruing		Non-accrual91+ Still
Accruing
   
North America$90 $20 $83 $20 
EAME35 5 33 5 
Asia/Pacific4 2 5 5 
Latin America24 1 24 — 
Mining10 — 29 — 
Power— — 2 — 
Total$163 $28 $176 $30 

There were no finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of December 31, 2025 and 2024.

Modifications
Cat Financial periodically modifies the terms of their finance receivable agreements. Typically, the types of modifications granted are payment deferrals, interest-only payment periods and/or term extensions. Many modifications Cat Financial grants are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. Cat Financial does not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers Cat Financial does consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both.

During the years ended December 31, 2025 and 2024, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment.

The ending amortized cost of finance receivables modified with borrowers experiencing financial difficulty in Cat Financial's Customer portfolio segment for the years ended December 31, 2025 and 2024 were as follows:

(Millions of dollars)20252024
Amortized cost of finance receivables modified$38 $33 
Modifications as a percentage of Customer portfolio0.16 %0.15 %

The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty for the years ended December 31, were as follows:

(In months)20252024
Weighted average extension to term of modified contracts198
Weighted average payment deferral and/or interest only periods66
After Cat Financial modifies a finance receivable, they continue to track its performance under its most recent modified terms. As of December 31, 2025 and 2024, defaults of loans modified in the prior twelve months were not significant.

The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses.
Concentration of Credit Risk
Finance receivables and wholesale inventory receivables primarily represent receivables under installment sales contracts, receivables arising from leasing transactions and notes receivable. No single customer or dealer represented a significant concentration of credit risk.
v3.25.4
Inventories
 12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Inventories Inventories
 
Inventories (principally using the LIFO method) are comprised of the following:
 
 December 31,
(Millions of dollars)20252024
Raw materials$7,434 $6,681 
Work-in-process1,598 1,438 
Finished goods8,725 8,329 
Supplies378 379 
Total inventories$18,135 $16,827 
v3.25.4
Property, plant and equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, plant and equipment Property, plant and equipment
 
 December 31,
(Millions of dollars)Useful
Lives (Years)		20252024
Land—$616 $612 
Buildings and land improvements
20-45
7,761 7,281 
Machinery, equipment and other
2-10
13,737 12,523 
Software
3-7
1,696 1,609 
Equipment leased to others
1-7
6,004 5,701 
Construction-in-process—2,092 1,751 
Total property, plant and equipment, at cost 31,906 29,477 
Less: Accumulated depreciation (16,766)(16,116)
Property, plant and equipment–net $15,140 $13,361 
v3.25.4
Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible assets and goodwill
A.Intangible assets
 
Intangible assets were comprised of the following:
 
 December 31, 2025
(Millions of dollars)
Gross Carrying Amount1
Accumulated
Amortization1
Net
Customer relationships$2,012 $(1,877)$135 
Intellectual property479 (399)80 
Other117 (91)26 
Total finite-lived intangible assets$2,608 $(2,367)$241 
 December 31, 2024
Gross Carrying AmountAccumulated
Amortization		Net
Customer relationships$2,220 $(1,950)$270 
Intellectual property496 (401)95 
Other117 (83)34 
Total finite-lived intangible assets$2,833 $(2,434)$399 
1 For the year ended December 31, 2025, $248 million of intangible assets were fully amortized and have been removed.
 
Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired.

Amortization expense related to intangible assets was $169 million, $176 million and $218 million for 2025, 2024 and 2023, respectively.

As of December 31, 2025, amortization expense related to intangible assets is expected to be: 

(Millions of dollars)
20262027202820292030Thereafter
$98$35$27$24$21$36
 
B.Goodwill
 
There were no goodwill impairments during 2025, 2024 or 2023.
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 were as follows:

(Millions of dollars)December 31, 2024
Other Adjustments 1
December 31, 2025
Construction Industries
Goodwill$261 $3 $264 
Impairments(22)— (22)
Net goodwill239 3 242 
Resource Industries
Goodwill4,124 37 4,161 
Impairments(1,175)— (1,175)
Net goodwill2,949 37 2,986 
Power & Energy
Goodwill2,939 40 2,979 
Impairment(925)— (925)
Net goodwill2,014 40 2,054 
All Other 2
Goodwill39 — 39 
Consolidated total
Goodwill7,363 80 7,443 
Impairments(2,122)— (2,122)
Net goodwill$5,241 $80 $5,321 
December 31, 2023
Other Adjustments 1
December 31, 2024
Construction Industries
Goodwill$277 $(16)$261 
Impairments(22)— (22)
Net goodwill255 (16)239 
Resource Industries
Goodwill4,151 (27)4,124 
Impairments(1,175)— (1,175)
Net goodwill2,976 (27)2,949 
Power & Energy
Goodwill2,959 (20)2,939 
Impairment(925)— (925)
Net goodwill2,034 (20)2,014 
All Other 2
Goodwill43 (4)39 
Consolidated total
Goodwill7,430 (67)7,363 
Impairments(2,122)— (2,122)
Net goodwill$5,308 $(67)$5,241 
1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other Segment (See Note 23).
v3.25.4
Investments in debt and equity securities
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments in debt and equity securities Investments in debt and equity securities
 
We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in Statement 3. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited.

We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in Statement 3). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in Statement 1. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in Statement 1.

The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in Statement 3) were as follows:

Available-for-sale debt securitiesDecember 31, 2025December 31, 2024
(Millions of dollars)Cost
Basis		Unrealized
Pretax Net
Gains
(Losses)		Fair
Value		Cost
Basis		Unrealized
Pretax Net
Gains
(Losses)		Fair
Value
Government debt securities      
U.S. treasury bonds$10 $— $10 $10 $— $10 
Other U.S. and non-U.S. government bonds
72 2 74 71 (3)68 
Corporate debt securities      
Corporate bonds and other debt securities2,457 23 2,480 3,199 (29)3,170 
Asset-backed securities273 — 273 220 (1)219 
Mortgage-backed debt securities
    
U.S. governmental agency
580 (8)572 476 (33)443 
Residential
2 (1)1 2 — 2 
Commercial
141 (2)139 136 (6)130 
Total available-for-sale debt securities$3,535 $14 $3,549 $4,114 $(72)$4,042 
Available-for-sale debt securities in an unrealized loss position:
 December 31, 2025
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities      
Other U.S. and non-U.S. government bonds$— $— $17 $— $17 $— 
Corporate debt securities
Corporate bonds130 — 306 6 436 6 
Asset-backed securities38 — 43 1 81 1 
Mortgage-backed debt securities
U.S. governmental agency3 — 307 15 310 15 
Residential— — 1 1 1 1 
Commercial6 — 89 3 95 3 
Total$177 $— $763 $26 $940 $26 

 December 31, 2024
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities
Other U.S. and non-U.S. government bonds$— $— $55 $4 $55 $4 
Corporate debt securities
Corporate bonds729 3 812 33 1,541 36 
Asset-backed securities7 — 37 2 44 2 
Mortgage-backed debt securities      
U.S. governmental agency126 3 273 30 399 33 
Commercial13 — 113 6 126 6 
Total$875 $6 $1,290 $75 $2,165 $81 
1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.
The unrealized losses on our investments in government debt securities, corporate debt securities, and mortgage-backed debt securities relate to changes in underlying interest rates and credit spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their respective amortized cost basis. In addition, we did not expect credit-related losses on these investments as of December 31, 2025.

The cost basis and fair value of available-for-sale debt securities at December 31, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.
December 31, 2025
(Millions of dollars)Cost BasisFair Value
Due in one year or less$744 $748 
Due after one year through five years1,488 1,504 
Due after five years through ten years378 383 
Due after ten years202 202 
U.S. governmental agency mortgage-backed securities580 572 
Residential mortgage-backed securities2 1 
Commercial mortgage-backed securities141 139 
Total debt securities – available-for-sale$3,535 $3,549 
 
For the years ended December 31, 2025, 2024 and 2023 proceeds from available-for-sale debt securities were $2,166 million, $1,223 million and $940 million respectively.

The net unrealized gains (losses) for equity securities held at December 31, 2025, 2024 and 2023 were $20 million, $25 million and $(12) million respectively.
v3.25.4
Postemployment benefit plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Postemployment benefit plans Postemployment benefit plans
 
We provide defined benefit pension plans, defined contribution plans and/or other postretirement benefit plans (retirement health care and life insurance) to employees in many of our locations throughout the world. Our defined benefit pension plans provide a benefit based on years of service and/or the employee’s average earnings near retirement. Our defined contribution plans allow employees to contribute a portion of their salary to help save for retirement, and in most cases, we provide a matching contribution. The benefit obligation related to our non-U.S. defined benefit pension plans are for employees located primarily in Europe, Japan and Brazil. For other postretirement benefits (OPEB), substantially all of our benefit obligation is for employees located in the United States.
A. Obligations, assets and funded status
 U.S. Pension BenefitsNon-U.S. 
Pension Benefits		Other Postretirement 
Benefits
(Millions of dollars)202520242025202420252024
Accumulated benefit obligation, end of year
$12,066 $12,171 $3,011 $2,880   
Change in benefit obligation:
Benefit obligation, beginning of year
$12,171 $13,137 $2,989 $3,265 $2,469 $2,741 
Service cost 1
— — 49 43 63 67 
Interest cost612 625 118 118 125 131 
Plan amendments— — 6 — — — 
Actuarial loss (gain) 276 (603)(93)(31)(96)(202)
Foreign currency exchange rates— — 291 (203)21 (33)
Participant contributions— — 5 5 41 45 
Benefits paid - gross(993)(988)(189)(193)(287)(286)
Less: federal subsidy on benefits paid
— — — — 6 6 
Curtailments, settlements and termination benefits
— — (45)(15)— — 
Benefit obligation, end of year$12,066 $12,171 $3,131 $2,989 $2,342 $2,469 
Change in plan assets:
Fair value of plan assets, beginning of year
$11,898 $12,738 $3,203 $3,467 $88 $144 
Actual return on plan assets1,158 96 103 74 25 25 
Foreign currency exchange rates
— — 307 (194)— — 
Company contributions50 52 70 59 261 160 
Participant contributions— — 5 5 41 45 
Benefits paid(993)(988)(189)(193)(287)(286)
Settlements and termination benefits
— — (45)(15)— — 
Fair value of plan assets, end of year
$12,113 $11,898 $3,454 $3,203 $128 $88 
Over (under) funded status
$47 $(273)$323 $214 $(2,214)$(2,381)
Amounts recognized in Statement 3:      
Other assets (non-current asset)$670 $354 $681 $541 $— $— 
Accrued wages, salaries and employee benefits (current liability)
(50)(50)(22)(21)(146)(204)
Liability for postemployment benefits (non-current liability) 2
(573)(577)(336)(306)(2,068)(2,177)
Net (liability) asset recognized$47 $(273)$323 $214 $(2,214)$(2,381)
Amounts recognized in AOCI (pre-tax):
Prior service cost (credit)$— $— $27 $21 $— $(5)
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate5.3 %5.6 %4.3 %4.1 %5.3 %5.6 %
Rate of compensation increase 1
— %— %2.2 %2.2 %4.0 %4.0 %

1 All U.S. pension benefits are frozen, and accordingly there is no longer any service cost and certain assumptions are no longer applicable.
2 The Liability for postemployment benefits reported in Statement 3 includes liabilities for other postemployment benefits and non-qualified deferred compensation plans. For 2025 and 2024, these liabilities were $861 million and $697 million, respectively.
For 2025, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2025 compared to the end of 2024. For 2024, Actuarial loss (gain) impacting the benefit obligation was primarily due to higher discount rates at the end of 2024 compared to the end of 2023.

 U.S. Pension BenefitsNon-U.S. 
Pension Benefits
(Millions of dollars)2025202420252024
Pension plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation$623 $627 $412 $370 
Fair value of plan assets$— $— $54 $43 
Pension plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation$623 $627 $300 $279 
Fair value of plan assets$— $— $19 $7 

The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented.
B. Net periodic benefit cost
 
 U.S. Pension BenefitsNon-U.S. Pension BenefitsOther Postretirement Benefits
(Millions of dollars)202520242023202520242023202520242023
Net periodic benefit cost:         
Service cost 1
$— $— $— $49 $43 $40 $63 $67 $67 
Interest cost612 625 656 118 118 124 125 131 144 
Expected return on plan assets(720)(699)(689)(171)(165)(163)(9)(7)(11)
Curtailments, settlements and termination benefits— — — — — 1 — — — 
Amortization of prior service cost (credit) — — — 1 — — (5)(14)(12)
Actuarial loss (gain) 2
(162)— (138)(26)59 172 (106)(213)(131)
Net periodic benefit cost (benefit) 3
$(270)$(74)$(171)$(29)$55 $174 $68 $(36)$57 
Amounts recognized in other comprehensive income (pre-tax):         
Current year prior service cost (credit)
$— $— $— $7 $— $1 $— $— $(2)
Amortization of prior service (cost) credit — — — (1)— — 5 14 12 
Total recognized in other comprehensive income
— — — 6 — 1 5 14 10 
Total recognized in net periodic cost and other comprehensive income
$(270)$(74)$(171)$(23)$55 $175 $73 $(22)$67 
Weighted-average assumptions used to determine net periodic benefit cost:         
Discount rate used to measure service cost 1
— %— %— %3.2 %3.6 %3.8 %5.7 %5.1 %5.4 %
Discount rate used to measure interest cost
5.3 %5.0 %5.2 %3.9 %3.9 %4.2 %5.3 %5.0 %5.3 %
Expected rate of return on plan assets6.3 %5.7 %5.8 %5.2 %5.1 %5.2 %6.1 %7.4 %7.4 %
Rate of compensation increase 1
— %— %— %2.2 %2.3 %2.3 %4.0 %4.0 %4.0 %
1 All U.S. pension benefits are frozen, and accordingly there is no longer any service cost and certain assumptions are no longer applicable.
2 Actuarial loss (gain) represents the effects of actual results differing from our assumptions and the effects of changing assumptions. We recognize actuarial loss (gain) immediately through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement.
3 The service cost component is included in Operating costs and all other components are included in Other income (expense) in Statement 1.

Our expected rate of return on U.S. plan assets is based on our estimate of long-term returns for equities and fixed income securities weighted by the asset allocations as of December 31. We use a similar process to determine this rate for our non-U.S. plans.

The assumed health care cost trend rate represents the rate at which costs are assumed to increase. We assumed a weighted-average increase of 6.0 percent in our calculation of 2025 benefit expense.  We expect a weighted-average increase of 6.7 percent during 2026.  The 2026 rates are assumed to decrease gradually to the ultimate health care trend rate of 4.7 percent in 2037.
 C. Expected contributions and Benefit payments

The following table presents information about expected contributions and benefit payments for pension and other postretirement benefit plans:
 
(Millions of dollars)2026
Expected employer contributions:   
U.S. Pension Benefits$50 
Non-U.S. Pension Benefits$64 
Other Postretirement Benefits$246 
Expected benefit payments:202620272028202920302031-2035Total
U.S. Pension Benefits$1,000 $985 $975 $965 $950 $4,510 $9,385 
Non-U.S. Pension Benefits$215 $200 $210 $215 $220 $1,120 $2,180 
Other Postretirement Benefits$225 $225 $220 $215 $210 $1,010 $2,105 
Expected Medicare Part D subsidy:$6 $5 $5 $5 $4 $17 $42 
 
The above table reflects the total expected employer contributions and expected benefits to be paid from the plan or from company assets and does not include the participants’ share of the cost. The expected benefit payments for our other postretirement benefits include payments for prescription drug benefits. The above table also includes Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments.
D. Plan assets

In general, our strategy for both the U.S. and non-U.S. pensions is designed to decrease funded status volatility through ongoing alignment of the interest rate sensitivity of our investments to our obligations, while reducing risk from return seeking assets in our portfolio. The current U.S. pension target asset allocation is 87 percent fixed income and 13 percent equities. We will revise this target allocation periodically to ensure it reflects our overall objectives. The non-U.S. pension weighted-average target allocations are 59 percent fixed income, 18 percent insurance contracts, 11 percent equities, 7 percent real estate, and 5 percent other.  The target allocations for each plan vary based upon local statutory requirements, demographics of plan participants and funded status.  We primarily invest the non-U.S. plan assets in non-U.S. securities.
 
Our target allocation for the other postretirement benefit plans is 40 percent equities and 60 percent fixed income. 
 
We rebalance the U.S. plans to within the appropriate target asset allocation ranges on a monthly basis.  The frequency of rebalancing for the non-U.S. plans varies depending on the plan. As a result of our diversification strategies, there are no significant concentrations of risk within the portfolio of investments.
 
We permit the use of certain derivative instruments where appropriate and necessary for achieving overall investment policy objectives.  The plans do not use derivative contracts for speculative purposes.
 
The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2 and 3). Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. See Note 18 for a discussion of the fair value hierarchy.
 
We determine fair values as follows:
 
•Equity securities are primarily based on valuations for identical instruments in active markets.
•Fixed income securities are primarily based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds.
•Real estate is stated at the fund’s net asset value or at appraised value.
•Insurance contracts are valued on an insurer pricing basis updated for changes in insurance market pricing, market rates, and inflation.
•Cash, short-term instruments and other are based on the carrying amount, which approximates fair value, or the fund’s net asset value.

The fair value of the pension and other postretirement benefit plan assets by category is summarized below:
 
 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
U.S. Pension     
Equity securities:     
U.S. equities$1,049 $1 $22 $50 $1,122 
Non-U.S. equities998 — 14 — 1,012 
Fixed income securities:    
U.S. corporate bonds— 5,598 28 91 5,717 
Non-U.S. corporate bonds— 958 — — 958 
U.S. government bonds— 2,619 — — 2,619 
U.S. governmental agency mortgage-backed securities— 184 — — 184 
Non-U.S. government bonds— 151 — — 151 
Cash, short-term instruments and other68 10 — 272 350 
Total U.S. pension assets$2,115 $9,521 $64 $413 $12,113 

 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
U.S. Pension    
Equity securities:    
U.S. equities$1,087 $— $28 $62 $1,177 
Non-U.S. equities946 — 10 — 956 
Fixed income securities:    
U.S. corporate bonds— 5,396 33 36 5,465 
Non-U.S. corporate bonds— 972 — — 972 
U.S. government bonds— 2,656 — — 2,656 
U.S. governmental agency mortgage-backed securities— 180 — — 180 
Non-U.S. government bonds— 132 — — 132 
Cash, short-term instruments and other48 12 — 300 360 
Total U.S. pension assets$2,081 $9,348 $71 $398 $11,898 
 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Non-U.S. Pension    
Equity securities:    
U.S. equities$78 $— $— $— $78 
Non-U.S. equities232 27 — 3 262 
Global equities 1 
41 — — 10 51 
Fixed income securities:    
U.S. corporate bonds— 89 — — 89 
Non-U.S. corporate bonds— 917 — — 917 
U.S. government bonds— 73 — — 73 
Non-U.S. government bonds— 606 — — 606 
Global fixed income 1 
— 113 — 213 326 
Real estate— 250 — 10 260 
Insurance contracts— — 577 — 577 
Cash, short-term instruments and other 2 
24 191 — — 215 
Total non-U.S. pension assets$375 $2,266 $577 $236 $3,454 

 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Non-U.S. Pension    
Equity securities:    
U.S. equities$74 $— $— $— $74 
Non-U.S. equities197 26 — 20 243 
Global equities 1 
32 — — 17 49 
Fixed income securities:    
U.S. corporate bonds— 87 — — 87 
Non-U.S. corporate bonds— 468 — — 468 
U.S. government bonds— 61 — — 61 
Non-U.S. government bonds— 916 — — 916 
Global fixed income 1 
— 104 — 193 297 
Real estate— 207 — 9 216 
Insurance contracts— — 601 — 601 
Cash, short-term instruments and other 2 
35 156 — — 191 
Total non-U.S. pension assets$338 $2,025 $601 $239 $3,203 
1 Includes funds that invest in both U.S. and non-U.S. securities.
2 Includes funds that invest in multiple asset classes, hedge funds and other.
 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Other Postretirement Benefits    
Equity securities:    
U.S. equities$46 $— $— $3 $49 
Non-U.S. equities23 — — 3 26 
Fixed income securities:    
U.S. corporate bonds— — — 21 21 
Cash, short-term instruments and other— — — 32 32 
Total other postretirement benefit assets$69 $— $— $59 $128 
 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Other Postretirement Benefits    
Equity securities:    
U.S. equities$41 $— $— $2 $43 
Non-U.S. equities18 — — 2 20 
Fixed income securities:    
U.S. corporate bonds— — — 20 20 
Cash, short-term instruments and other— — — 5 5 
Total other postretirement benefit assets$59 $— $— $29 $88 

The activity attributable to U.S. pension assets measured at fair value using Level 3 inputs for the years ended December 31, 2025 and 2024 was insignificant. The activity in our non-U.S. pension Level 3 assets involved insurance contracts. During 2025, activity was settlements of $58 million and unrealized gains of $34 million. During 2024, activity was settlements of $59 million and unrealized losses of $15 million. We valued these instruments using pricing models that, in management’s judgment, reflect the assumptions a market participant would use.
E. Defined contribution plans
 
We have both U.S. and non-U.S. employee defined contribution plans to help employees save for retirement. Our primary U.S. 401(k) plan allows eligible employees to contribute a portion of their cash compensation to the plan. Employees are eligible for matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age).

These 401(k) plans include various investment funds, including a non-leveraged employee stock ownership plan (ESOP). As of December 31, 2025 and 2024, the ESOP held 9.6 million and 10.4 million shares, respectively. We allocate all of the shares held by the ESOP to participant accounts. Dividends paid to participants are automatically reinvested into company shares unless the participant elects to have all or a portion of the dividend paid to the participant. Various other U.S. and non-U.S. defined contribution plans generally allow eligible employees to contribute a portion of their cash compensation to the plans, and in most cases, we provide a matching contribution to the funds.
 
Total company costs related to U.S. and non-U.S. defined contribution plans were as follows:
 
(Millions of dollars)202520242023
U.S. plans 1
$696 $610 $567 
Non-U.S. plans139 131 114 
 $835 $741 $681 

1 Includes costs related to our non-qualified deferred compensation plans. We utilize total return swaps to economically hedge this exposure to offset the related costs. See Note 4 for additional information.

For our U.S. plans, changes in annual defined contribution costs are primarily due to fair value adjustments related to our non-qualified deferred compensation plans.
v3.25.4
Short-term borrowings
 12 Months Ended
Dec. 31, 2025
Short-Term Debt [Abstract]  
Short-term borrowings Short-term borrowings
 
 December 31,
(Millions of dollars)20252024
Machinery, Power & Energy:  
Notes payable to banks$— $— 
 — — 
Financial Products:  
Commercial paper5,408 3,946 
Notes payable to banks106 165 
Demand notes— 282 
 5,514 4,393 
Total short-term borrowings$5,514 $4,393 
 
The weighted-average interest rates on short-term borrowings outstanding were:

 December 31,
 20252024
Commercial paper3.8 %4.5 %
Notes payable to banks10.1 %10.8 %
Demand notes— %4.2 %
 
Please refer to Note 18 for fair value information on short-term borrowings.
v3.25.4
Long-term debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-term debt Long-term debt
 December 31,
(Millions of dollars)
Effective Yield to Maturity 1
20252024
Machinery, Power & Energy:  
Notes—$759 million of 5.200% due 2041 2
5.27%$753 $753 
Debentures—$193 million of 6.625% due 2028 2
6.68%193 193 
Debentures—$500 million of 2.600% due 2029 2
2.67%499 498 
Debentures—$800 million of 2.600% due 2030 2
2.72%796 796 
Debentures—$500 million of 1.900% due 2031 2
2.04%497 496 
Debentures—$242 million of 7.300% due 2031 2
7.38%241 241 
Debentures—$1,700 million of 5.200% due 2035 2
5.30%1,688 — 
Debentures—$307 million of 5.300% due 2035 2
8.64%241 237 
Debentures—$460 million of 6.050% due 2036 2
6.12%457 457 
Debentures—$65 million of 8.250% due 2038 2
8.38%64 64 
Debentures—$160 million of 6.950% due 2042 2
7.02%158 158 
Debentures—$1,722 million of 3.803% due 2042 2
6.39%1,395 1,375 
Debentures—$500 million of 4.300% due 2044
4.39%494 494 
Debentures—$1,000 million of 3.250% due 2049 2
3.34%985 984 
Debentures—$1,200 million of 3.250% due 2050 2
3.32%1,187 1,186 
Debentures—$300 million of 5.500% due 2055 2
5.74%289 — 
Debentures—$500 million of 4.750% due 2064
4.81%494 494 
Debentures—$246 million of 7.375% due 2097 2
7.51%241 241 
Finance lease obligations & other 3
6 (103)
Total Machinery, Power & Energy10,678 8,564 
Financial Products:  
Medium-term notes19,675 18,568 
Other343 219 
Total Financial Products20,018 18,787 
Total long-term debt due after one year$30,696 $27,351 

1    Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs.
2    Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.
3    Includes $(88) million and $(170) million of mark-to-market adjustments related to fair value interest rate swap contracts as of December 31, 2025 and 2024, respectively.

All outstanding notes and debentures are unsecured and rank equally with one another.

On May 12, 2025, we issued $1.7 billion of 5.200% Senior Notes due 2035 and $300 million 5.500% Senior Notes due 2055. Interest on each series of notes will be paid semi-annually on May 15 and November 15 of each year, commencing on November 15, 2025.

Cat Financial’s medium-term notes are offered by prospectus and are issued through agents at fixed and floating rates. Medium-term notes due after one year have a weighted average interest rate of 3.8% with remaining maturities up to 5 years at December 31, 2025.
 
The aggregate amounts of maturities of long-term debt during each of the years 2026 through 2030, including amounts due within one year and classified as current, are:

 December 31,
(Millions of dollars)20262027202820292030
Machinery, Power & Energy$35 $30 $219 $522 $805 
Financial Products7,085 8,890 7,528 2,590 456 
 $7,120 $8,920 $7,747 $3,112 $1,261 

Medium-term notes of $1.75 billion maturing in the first quarter of 2026 were excluded from the current maturities of long-term debt in Statement 3 as of December 31, 2025 due to a $1.75 billion issuance of medium-term notes on January 8, 2026 of which $1.25 billion and $500 million mature in 2028 and 2031, respectively. The preceding maturity table reflects the reclassification of $1.75 billion from maturities in 2026 to $1.25 billion in 2028 and $500 million in 2031.

Interest paid on short-term and long-term borrowings for 2025, 2024 and 2023 was $1,842 million, $1,738 million and $1,435 million, respectively.
 
Please refer to Note 18 for fair value information on long-term debt.
v3.25.4
Credit commitments
 12 Months Ended
Dec. 31, 2025
Credit Commitments [Abstract]  
Credit commitments Credit commitments
 
 December 31, 2025
(Millions of dollars)ConsolidatedMachinery,
Power & Energy		Financial
Products
Credit lines available:   
Global credit facilities$11,500 $2,875 $8,625 
Other external4,337 896 3,441 
Total credit lines available15,837 3,771 12,066 
Less: Commercial paper outstanding(5,408)— (5,408)
Less: Utilized credit(771)— (771)
Available credit$9,658 $3,771 $5,887 
 
As of December 31, 2025, we had three global credit facilities with a syndicate of banks totaling $11.50 billion (Credit Facility) available in the aggregate to both Caterpillar and Cat Financial for general liquidity purposes.  Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to MP&E as of December 31, 2025 was $2.88 billion. Information on our Credit Facility is as follows:
 
•In August 2025, we entered into a new 364-day facility. The 364-day facility of $3.50 billion (of which $875 million is available to MP&E) expires in August 2026.
•In August 2025, we amended and extended the three-year facility (as amended and restated, the "three-year facility"). The three-year facility of $3.00 billion (of which $750 million is available to MP&E) expires in August 2028.
•In August 2025, we amended and extended the five-year facility (as amended and restated, the "five-year facility"). The five-year facility of $5.00 billion (of which $1.25 billion is available to MP&E) expires in August 2030.
Other consolidated credit lines with banks as of December 31, 2025 totaled $4.34 billion. These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our subsidiaries for local funding requirements.  Caterpillar or Cat Financial may guarantee subsidiary borrowings under these lines.
In the event Caterpillar or Cat Financial does not meet one or more of their respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants.  Additionally, in such event, certain of Cat Financial’s other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings.  At December 31, 2025, there were no borrowings under the Credit Facility, and Caterpillar and Cat Financial were in compliance with their respective financial covenants under the Credit Facility.
v3.25.4
Profit per share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Profit per share Profit per share
 
Computations of profit per share:
(Dollars in millions except per share data)202520242023
Profit for the period (A) 1 
$8,884 $10,792 $10,335 
Determination of shares (in millions):   
Weighted average number of common shares outstanding (B)470.0 486.7 510.6 
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price2.3 2.7 3.0 
Average common shares outstanding for fully diluted computation (C) 2
472.3 489.4 513.6 
Profit per share of common stock:   
Assuming no dilution (A/B)$18.90 $22.17 $20.24 
Assuming full dilution (A/C) 2
$18.81 $22.05 $20.12 
Shares outstanding as of December 31, (in millions)465.3 477.9 499.4 
1Profit attributable to common shareholders.
2Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

For the years ended December 31, 2025, 2024 and 2023, we excluded 0.1 million, 0.3 million and 0.8 million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

In May 2022, the Board approved a new share repurchase authorization (the 2022 Authorization) of up to $15.0 billion of Caterpillar common stock effective August 1, 2022, with no expiration. In June 2024, the Board approved an additional share repurchase authorization (the 2024 Authorization) of up to $20.0 billion of Caterpillar common stock, effective June 12, 2024, with no expiration. As of March 31, 2025, the 2022 Authorization was fully utilized and as of December 31, 2025, approximately $14.9 billion remained available under the 2024 Authorizations.

During 2025, 2024 and 2023, we repurchased 14.1 million, 23.4 million and 19.5 million shares of Caterpillar common stock, respectively, at an aggregate cost of $5.2 billion, $8.0 billion and $4.7 billion, respectively. We made these purchases through a combination of accelerated share repurchase (ASR) agreements with third-party financial institutions and open market transactions.
In the first quarter of 2025, we entered into ASR agreements to repurchase an aggregate of $3.0 billion of common stock. We advanced $3.0 billion and received approximately 5.7 million shares of Caterpillar common stock with a value of $2.1 billion. In the fourth quarter of 2025, upon final settlement of the ASRs, we received approximately 2.4 million additional shares.
v3.25.4
Accumulated other comprehensive income (loss)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss)
We present comprehensive income and its components in Statement 2. Changes in the balances for each component of AOCI were as follows:

(Millions of dollars)
202520242023
Foreign currency translation
Beginning balance$(2,310)$(1,782)$(2,328)
Gains (losses) on foreign currency translation559 (535)32 
Less: Tax provision /(benefit)2 21 (21)
Net gains (losses) on foreign currency translation557 (556)53 
(Gains) losses reclassified to earnings— 28 493 
Less: Tax provision /(benefit)— — — 
Net (gains) losses reclassified to earnings— 28 493 
Other comprehensive income (loss), net of tax557 (528)546 
Ending balance$(1,753)$(2,310)$(1,782)
Pension and other postretirement benefits
Beginning balance$(61)$(49)$(39)
Current year prior service credit (cost)(7)— 1 
Less: Tax provision /(benefit)(2)— — 
Net current year prior service credit (cost)(5)— 1 
Amortization of prior service (credit) cost(4)(14)(12)
Less: Tax provision /(benefit)— (2)(1)
Net amortization of prior service (credit) cost(4)(12)(11)
Other comprehensive income (loss), net of tax(9)(12)(10)
Ending balance$(70)$(61)$(49)
Derivative financial instruments
Beginning balance$(46)$67 $28 
Gains (losses) deferred163 64 48 
Less: Tax provision /(benefit)38 27 11 
Net gains (losses) deferred125 37 37 
(Gains) losses reclassified to earnings(53)(207)3 
Less: Tax provision /(benefit)(13)(57)1 
Net (gains) losses reclassified to earnings(40)(150)2 
Other comprehensive income (loss), net of tax85 (113)39 
Ending balance$39 $(46)$67 
Available-for-sale securities
Beginning balance$(54)$(56)$(118)
Gains (losses) deferred78 (2)72 
Less: Tax provision /(benefit)18 — 11 
Net gains (losses) deferred60 (2)61 
(Gains) losses reclassified to earnings8 4 1 
Less: Tax provision /(benefit)2 — — 
Net (gains) losses reclassified to earnings6 4 1 
Other comprehensive income (loss), net of tax66 2 62 
Ending balance$12 $(54)$(56)
Total AOCI Ending Balance at December 31,$(1,772)$(2,471)$(1,820)
v3.25.4
Fair value disclosures
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair value disclosures Fair value disclosures
 
A.Fair value measurements
 
The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.  This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques.  Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions.  In accordance with this guidance, fair value measurements are classified under the following hierarchy:
 
•Level 1 — Quoted prices for identical instruments in active markets.

•Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

•Level 3 — Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.
 
When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1.  In some cases where market prices are not available, we make use of observable market based inputs to calculate fair value, in which case the measurements are classified within Level 2.  If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates.  These measurements are classified within Level 3.

We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation.  We may therefore classify a measurement within Level 3 even though there may be significant inputs that are readily observable.
 
Fair value measurement includes the consideration of nonperformance risk.  Nonperformance risk refers to the risk that an obligation (either by a counterparty or Caterpillar) will not be fulfilled.  For financial assets traded in an active market (Level 1 and certain Level 2), the nonperformance risk is included in the market price.  For certain other financial assets and liabilities (certain Level 2 and Level 3), our fair value calculations have been adjusted accordingly.
 
Investments in debt and equity securities
We have investments in certain debt and equity securities that are recorded at fair value.  Fair values for our U.S. treasury bonds and equity securities are based upon valuations for identical instruments in active markets.  Fair values for other government debt securities, corporate debt securities and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds.
 
We also have investments in time deposits classified as held-to-maturity debt securities. The fair value of these investments is based upon valuations observed in less active markets than Level 1. These investments have a maturity of less than one year and are recorded at amortized costs, which approximate fair value.

In addition, Insurance Services has an equity investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment and is not classified within the fair value hierarchy.

See Note 11 for additional information on our investments in debt and equity securities.
 
Derivative financial instruments
The fair value of interest rate contracts is primarily based on a standard industry accepted valuation model that utilizes the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency and commodity forward, option and cross currency contracts is based on standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate. The fair value of total return swap contracts is primarily based on valuing the underlying securities or funds using pricing by industry providers and the average Secured Overnight Financing Rate (SOFR) plus a spread.

See Note 4 for additional information.
Assets and liabilities measured on a recurring basis at fair value included in Statement 3 as of December 31, 2025 and 2024 were as follows:

 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal
Assets / Liabilities,
at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 74 — — 74 
Corporate debt securities   
Corporate bonds and other debt securities— 2,480 — — 2,480 
Asset-backed securities— 273 — — 273 
Mortgage-backed debt securities   
U.S. governmental agency— 572 — — 572 
Residential— 1 — — 1 
Commercial— 139 — — 139 
Total debt securities10 3,539 — — 3,549 
Equity securities 
Large capitalization value283 — — — 283 
Smaller company growth65 — — — 65 
REIT— — — 174 174 
Total equity securities348 — — 174 522 
Derivative financial instruments - assets
Foreign currency contracts - net— 204 — — 204 
Commodity contracts - net— 8 — — 8 
Total assets$358 $3,751 $— $174 $4,283 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $40 $— $— $40 
Total return swap contracts - net— 1 — — 1 
Total liabilities$— $41 $— $— $41 
 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal
 Assets / Liabilities,
 at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 68 — — 68 
Corporate debt securities    
Corporate bonds and other debt securities— 3,170 — — 3,170 
Asset-backed securities— 219 — — 219 
Mortgage-backed debt securities    
U.S. governmental agency— 443 — — 443 
Residential— 2 — — 2 
Commercial— 130 — — 130 
Total debt securities10 4,032 — — 4,042 
Equity securities    
Large capitalization value261 — — 261 
Smaller company growth41 — — 41 
REIT— — — 167 167 
Total equity securities302 — — 167 469 
Derivative financial instruments - assets
Foreign currency contracts - net— 117 — — 117 
Total assets$312 $4,149 $— $167 $4,628 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $191 $— $— $191 
Commodity contracts - net— 2 — — 2 
Total return swap contracts - net— 33 — — 33 
Total liabilities$— $226 $— $— $226 

In addition to the amounts above, certain Cat Financial loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables, or the observable market price of the receivable. In determining collateral value, Cat Financial estimates the current fair market value of the collateral less selling costs. Cat Financial had loans carried at fair value of $63 million and $59 million as of December 31, 2025 and 2024, respectively.  
 
B.Fair values of financial instruments
 
In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair value measurements section above, we use the following methods and assumptions to estimate the fair value of our financial instruments:
 
Cash and cash equivalents
Carrying amount approximates fair value. We classify cash and cash equivalents as Level 1. See Statement 3.
 
Restricted cash and short-term investments
Carrying amount approximates fair value.  We include restricted cash and short-term investments in Prepaid expenses and other current assets in Statement 3. We classify these instruments as Level 1 except for time deposits which are Level 2. See Note 11 for additional information.
 
Finance receivables
We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities.
 
Wholesale inventory receivables
We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities.
 
Short-term borrowings
Carrying amount approximates fair value. We classify short-term borrowings as Level 1. See Note 13 for additional information.
 
Long-term debt
We estimate fair value for fixed and floating rate debt based on quoted market prices.
 
Our financial instruments not carried at fair value were as follows:
 
 20252024 
(Millions of dollars)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Fair Value LevelsReference
Assets at December 31,     
Finance receivables–net (excluding finance leases 1)
$17,922 $17,648 $16,180 $15,788 3Note 7
Wholesale inventory receivables–net (excluding finance leases 1)
1,931 1,871 1,568 1,527 3Note 7
Liabilities at December 31,     
Long-term debt (including amounts due within one year):     
Machinery, Power & Energy10,713 10,363 8,610 7,980 2Note 14
Financial Products27,103 27,204 25,406 25,304 2Note 14
 1 Represents finance leases and failed sale leasebacks of $7,189 million and $6,769 million at December 31, 2025 and 2024, respectively.
v3.25.4
Supplier Finance Programs
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Supplier Finance Programs Supplier finance programs
 
We facilitate voluntary supplier finance programs (the “Programs”) through participating financial institutions. The Programs are available to a wide range of suppliers and allow them the option to manage their cash flow. We are not a party to the agreements between the participating financial institutions and the suppliers in connection with the Programs. The range of payment terms, typically 60-90 days, we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the Programs. The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in Statement 3, were $936 million and $830 million at December 31, 2025 and 2024, respectively.
The rollforward of our outstanding obligations confirmed as valid under the Programs for the Years ended December 31, were as follows:

(Millions of dollars)20252024
Confirmed obligations outstanding, beginning of period$830 $803 
Invoices confirmed during the period5,669 5,140 
Confirmed invoices paid during the period(5,563)(5,113)
Confirmed obligations outstanding, end of period$936 $830 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
 
A. Lessee arrangements

We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate payments for lease and non-lease components. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. We have elected not to recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less.

Our finance leases are not significant and therefore are not included in the following disclosures.

The components of lease costs were as follows:
(Millions of dollars)
Years Ended December 31,
202520242023
Operating lease cost$192 $185 $189 
Short-term lease cost$67 $65 $62 

We recognize operating lease right-of-use assets in Other assets in Statement 3. We recognize the operating lease liabilities in Other current liabilities and Other liabilities.

Supplemental information related to leases was as follows:

(Millions of dollars)
December 31, 2025December 31, 2024
Operating Leases
Other assets$708 $592 
Other current liabilities$158 $143 
Other liabilities$570 $459 
Weighted average remaining lease term
Operating leases7 years7 years
Weighted average discount rates
Operating leases4 %3 %
Maturities of operating lease liabilities were as follows:

(Millions of dollars)December 31, 2025
Amounts Due In
2026$183 
2027149 
2028115 
202998 
203074 
Thereafter223 
Total lease payments842 
Less: Imputed interest(114)
Total$728 

Supplemental cash flow information related to leases was as follows:

(Millions of dollars)
Years ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
   Operating cash flows from operating leases$185 $179 $180 
Right-of-use assets obtained in exchange for lease obligations:
   Operating leases$259 $187 $148 

B. Lessor arrangements

We lease Caterpillar machinery, engines and other equipment to customers and dealers around the world, primarily through Cat Financial. Cat Financial leases to customers primarily through sales-type (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease. Cat Financial also offers tax leases that are classified as either operating or direct finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, Cat Financial is considered the owner of the equipment. Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value.
We determine the residual value of Cat Financial’s leased equipment based on its estimated end-of-term market value.  We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends.  We also consider the following critical factors in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options.
During the term of our leases, we monitor residual values.  For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis.  For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term.
See Note 7 for contractual maturities of finance lease receivables (sales-type and direct finance leases).
The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows:

December 31,
(Millions of dollars)20252024
Equipment leased to others - at original cost$6,004 $5,701 
Less: Accumulated depreciation(1,999)(1,927)
Equipment leased to others - net$4,005 $3,774 
Payments due for operating leases as of December 31, 2025, were as follows:

(Millions of dollars)
20262027202820292030ThereafterTotal
$896$598$397$200$104$80$2,275
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows:

(Millions of dollars)
Year ended December 31,
202520242023
Finance lease revenue$473 $440 $420 
Operating lease revenue1,216 1,212 1,166 
Total$1,689 $1,652 $1,586 
We present revenues net of sales and other related taxes.
Leases Leases
 
A. Lessee arrangements

We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate payments for lease and non-lease components. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. We have elected not to recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less.

Our finance leases are not significant and therefore are not included in the following disclosures.

The components of lease costs were as follows:
(Millions of dollars)
Years Ended December 31,
202520242023
Operating lease cost$192 $185 $189 
Short-term lease cost$67 $65 $62 

We recognize operating lease right-of-use assets in Other assets in Statement 3. We recognize the operating lease liabilities in Other current liabilities and Other liabilities.

Supplemental information related to leases was as follows:

(Millions of dollars)
December 31, 2025December 31, 2024
Operating Leases
Other assets$708 $592 
Other current liabilities$158 $143 
Other liabilities$570 $459 
Weighted average remaining lease term
Operating leases7 years7 years
Weighted average discount rates
Operating leases4 %3 %
Maturities of operating lease liabilities were as follows:

(Millions of dollars)December 31, 2025
Amounts Due In
2026$183 
2027149 
2028115 
202998 
203074 
Thereafter223 
Total lease payments842 
Less: Imputed interest(114)
Total$728 

Supplemental cash flow information related to leases was as follows:

(Millions of dollars)
Years ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
   Operating cash flows from operating leases$185 $179 $180 
Right-of-use assets obtained in exchange for lease obligations:
   Operating leases$259 $187 $148 

B. Lessor arrangements

We lease Caterpillar machinery, engines and other equipment to customers and dealers around the world, primarily through Cat Financial. Cat Financial leases to customers primarily through sales-type (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease. Cat Financial also offers tax leases that are classified as either operating or direct finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, Cat Financial is considered the owner of the equipment. Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value.
We determine the residual value of Cat Financial’s leased equipment based on its estimated end-of-term market value.  We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends.  We also consider the following critical factors in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options.
During the term of our leases, we monitor residual values.  For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis.  For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term.
See Note 7 for contractual maturities of finance lease receivables (sales-type and direct finance leases).
The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows:

December 31,
(Millions of dollars)20252024
Equipment leased to others - at original cost$6,004 $5,701 
Less: Accumulated depreciation(1,999)(1,927)
Equipment leased to others - net$4,005 $3,774 
Payments due for operating leases as of December 31, 2025, were as follows:

(Millions of dollars)
20262027202820292030ThereafterTotal
$896$598$397$200$104$80$2,275
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows:

(Millions of dollars)
Year ended December 31,
202520242023
Finance lease revenue$473 $440 $420 
Operating lease revenue1,216 1,212 1,166 
Total$1,689 $1,652 $1,586 
We present revenues net of sales and other related taxes.
Leases Leases
 
A. Lessee arrangements

We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate payments for lease and non-lease components. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. We have elected not to recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less.

Our finance leases are not significant and therefore are not included in the following disclosures.

The components of lease costs were as follows:
(Millions of dollars)
Years Ended December 31,
202520242023
Operating lease cost$192 $185 $189 
Short-term lease cost$67 $65 $62 

We recognize operating lease right-of-use assets in Other assets in Statement 3. We recognize the operating lease liabilities in Other current liabilities and Other liabilities.

Supplemental information related to leases was as follows:

(Millions of dollars)
December 31, 2025December 31, 2024
Operating Leases
Other assets$708 $592 
Other current liabilities$158 $143 
Other liabilities$570 $459 
Weighted average remaining lease term
Operating leases7 years7 years
Weighted average discount rates
Operating leases4 %3 %
Maturities of operating lease liabilities were as follows:

(Millions of dollars)December 31, 2025
Amounts Due In
2026$183 
2027149 
2028115 
202998 
203074 
Thereafter223 
Total lease payments842 
Less: Imputed interest(114)
Total$728 

Supplemental cash flow information related to leases was as follows:

(Millions of dollars)
Years ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
   Operating cash flows from operating leases$185 $179 $180 
Right-of-use assets obtained in exchange for lease obligations:
   Operating leases$259 $187 $148 

B. Lessor arrangements

We lease Caterpillar machinery, engines and other equipment to customers and dealers around the world, primarily through Cat Financial. Cat Financial leases to customers primarily through sales-type (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease. Cat Financial also offers tax leases that are classified as either operating or direct finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, Cat Financial is considered the owner of the equipment. Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value.
We determine the residual value of Cat Financial’s leased equipment based on its estimated end-of-term market value.  We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends.  We also consider the following critical factors in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options.
During the term of our leases, we monitor residual values.  For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis.  For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term.
See Note 7 for contractual maturities of finance lease receivables (sales-type and direct finance leases).
The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows:

December 31,
(Millions of dollars)20252024
Equipment leased to others - at original cost$6,004 $5,701 
Less: Accumulated depreciation(1,999)(1,927)
Equipment leased to others - net$4,005 $3,774 
Payments due for operating leases as of December 31, 2025, were as follows:

(Millions of dollars)
20262027202820292030ThereafterTotal
$896$598$397$200$104$80$2,275
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows:

(Millions of dollars)
Year ended December 31,
202520242023
Finance lease revenue$473 $440 $420 
Operating lease revenue1,216 1,212 1,166 
Total$1,689 $1,652 $1,586 
We present revenues net of sales and other related taxes.
Leases Leases
 
A. Lessee arrangements

We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate payments for lease and non-lease components. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. We have elected not to recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less.

Our finance leases are not significant and therefore are not included in the following disclosures.

The components of lease costs were as follows:
(Millions of dollars)
Years Ended December 31,
202520242023
Operating lease cost$192 $185 $189 
Short-term lease cost$67 $65 $62 

We recognize operating lease right-of-use assets in Other assets in Statement 3. We recognize the operating lease liabilities in Other current liabilities and Other liabilities.

Supplemental information related to leases was as follows:

(Millions of dollars)
December 31, 2025December 31, 2024
Operating Leases
Other assets$708 $592 
Other current liabilities$158 $143 
Other liabilities$570 $459 
Weighted average remaining lease term
Operating leases7 years7 years
Weighted average discount rates
Operating leases4 %3 %
Maturities of operating lease liabilities were as follows:

(Millions of dollars)December 31, 2025
Amounts Due In
2026$183 
2027149 
2028115 
202998 
203074 
Thereafter223 
Total lease payments842 
Less: Imputed interest(114)
Total$728 

Supplemental cash flow information related to leases was as follows:

(Millions of dollars)
Years ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
   Operating cash flows from operating leases$185 $179 $180 
Right-of-use assets obtained in exchange for lease obligations:
   Operating leases$259 $187 $148 

B. Lessor arrangements

We lease Caterpillar machinery, engines and other equipment to customers and dealers around the world, primarily through Cat Financial. Cat Financial leases to customers primarily through sales-type (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease. Cat Financial also offers tax leases that are classified as either operating or direct finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, Cat Financial is considered the owner of the equipment. Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value.
We determine the residual value of Cat Financial’s leased equipment based on its estimated end-of-term market value.  We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends.  We also consider the following critical factors in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options.
During the term of our leases, we monitor residual values.  For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis.  For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term.
See Note 7 for contractual maturities of finance lease receivables (sales-type and direct finance leases).
The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows:

December 31,
(Millions of dollars)20252024
Equipment leased to others - at original cost$6,004 $5,701 
Less: Accumulated depreciation(1,999)(1,927)
Equipment leased to others - net$4,005 $3,774 
Payments due for operating leases as of December 31, 2025, were as follows:

(Millions of dollars)
20262027202820292030ThereafterTotal
$896$598$397$200$104$80$2,275
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows:

(Millions of dollars)
Year ended December 31,
202520242023
Finance lease revenue$473 $440 $420 
Operating lease revenue1,216 1,212 1,166 
Total$1,689 $1,652 $1,586 
We present revenues net of sales and other related taxes.
v3.25.4
Guarantees and product warranty
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Guarantees and product warranty Guarantees and product warranty
 
We have provided various guarantees that have varying terms and limit potential payment. Under the guarantees, non-performance by the third parties could require Caterpillar to satisfy the contractual obligation by providing goods, services or financial compensation. The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $458 million and $368 million at December 31, 2025 and 2024, respectively.

We have dealer performance guarantees and third-party performance guarantees that do not limit potential payment to end users related to indemnities and other commercial contractual obligations. In addition, we have entered into contracts involving industry standard indemnifications that do not limit potential payment. For these unlimited guarantees, we are unable to estimate a maximum potential amount of future payments that could result from claims made.

No significant loss has been experienced or is anticipated under any of these guarantees.

Cat Financial provides guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity.  Cat Financial receives a fee for providing this guarantee. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers.  This SPC issues commercial paper and uses the proceeds to fund its loan program.  Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC.  As of December 31, 2025 and 2024, the SPC’s assets of $1.19 billion and $1.14 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1.19 billion and $1.14 billion, respectively, were primarily comprised of commercial paper.  The assets of the SPC are not available to pay Cat Financial’s creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement.
 
Cat Financial has commitments to extend credit to customers and Caterpillar dealers through lines of credit and other pre-approved credit arrangements. Cat Financial applies the same credit policies and approval process for these commitments as we do for other financing. If credit is extended, collateral is generally required upon funding. The unused commitments to extend credit to customers and dealers that are not unconditionally cancellable were $901 million and $291 million at December 31, 2025, respectively. Cat Financial also has other pre-approved lines of credit and other credit arrangements with Caterpillar dealers that we generally have the right to unconditionally cancel, alter, or amend the terms for these at any time.

We determine our product warranty liability by applying historical claim rate experience to the current field population and dealer inventory.  Generally, we base historical claim rates on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America).  We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience.

The reconciliation of the change in our product warranty liability balances for the years ended December 31, was as follows:
 
(Millions of dollars)20252024
Warranty liability, beginning of period$1,700 $1,894 
Reduction in liability (payments)(836)(824)
Increase in liability (new warranties)762 630 
Warranty liability, end of period$1,626 $1,700 
v3.25.4
Environmental and legal matters
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Environmental and legal matters Environmental and legal matters
The Company is regulated by federal, state and international environmental laws governing its use, transport and disposal of substances and control of emissions. In addition to governing our manufacturing and other operations, these laws often impact the development of our products, including, but not limited to, required compliance with air emissions standards applicable to internal combustion engines. We have made, and will continue to make, significant research and development and capital expenditures to comply with these emissions standards.
We are engaged in remedial activities at a number of locations, often with other companies, pursuant to federal and state laws. When it is probable we will pay remedial costs at a site, and those costs can be reasonably estimated, we accrue the investigation, remediation, and operating and maintenance costs against our earnings. We accrue costs based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience. Where no amount within a range of estimates is more likely, we accrue the minimum. Where multiple potentially responsible parties are involved, we consider our proportionate share of the probable costs. In formulating the estimate of probable costs, we do not consider amounts expected to be recovered from insurance companies or others. We reassess these accrued amounts on a quarterly basis. The amount recorded for environmental remediation is not material and is included in Accrued expenses. We believe there is no more than a remote chance that a material amount for remedial activities at any individual site, or at all the sites in the aggregate, will be required.

Our operations in Brazil are subject to highly complex labor, tax, customs and other laws. While we believe that we are in compliance with such laws, we are periodically engaged in litigation regarding the application of these laws, including certain tax and customs disputes with federal, state and municipal authorities in Brazil relating to export activities associated with Caterpillar Brasil Ltda. The Company is unable to predict the outcome or reasonably estimate any potential losses; however, we currently believe that any matters raised will not have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity.

In addition, we are involved in other unresolved legal actions that arise in the normal course of business. The most prevalent of these unresolved actions involve disputes related to product design, manufacture and performance liability (including claimed asbestos exposure), contracts, employment issues, environmental matters, intellectual property rights, taxes (other than income taxes) and securities laws. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal actions is not material. In some cases, we cannot reasonably estimate a range of loss because there is insufficient information regarding the matter. However, we believe there is no more than a remote chance that any liability arising from these matters would be material. Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.
v3.25.4
Segment information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment information Segment information 
 
A. Basis for segment information
 
Our Executive Office is comprised of a Chief Executive Officer (CEO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage. The Chief Legal Officer and General Counsel leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the Group President/CFO reporting structure.
 
Three of our operating segments, Construction Industries, Resource Industries and Power & Energy are led by Group Presidents. One operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services. Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. One Group President leads one smaller operating segment that is included in the All Other Segment. The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment.

Effective July 1, 2025, we made the following changes to segment reporting. These changes were made to reflect changes in organizational accountabilities and refinements to our internal reporting.

•Responsibility for business strategy, product design, product management and development, manufacturing, marketing and sales and product support for and sourcing of wear and maintenance components and related parts moved from All Other Segment to Resource Industries.

•Responsibility for business strategy, product design, product management and development, manufacturing and product support for electronics and control systems moved from Resource Industries to All Other Segment.

•Responsibility for research and development for automation, electronics and software for machines and engines moved from Resource Industries to the All Other Segment.
Segment information for 2024 and 2023 has been retrospectively adjusted to conform to the 2025 presentation.

B. Description of segments
 
We have five operating segments, of which four are reportable segments. Following is a brief description of our reportable segments and the business activities included in the All Other Segment:
 
Construction Industries: A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; cold planers; compactors; compact track loaders; forestry machines; material handlers; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; track-type loaders; track-type tractors (small, medium); track excavators (mini, small, medium, large); wheel excavators; wheel loaders (compact, small, medium); and related parts and work tools. Inter-segment sales are a source of revenue for this segment.

Resource Industries: A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors; large mining trucks; hard rock vehicles; electric rope shovels; draglines; hydraulic shovels; rotary drills; large wheel loaders; off-highway trucks; articulated trucks; wheel tractor scrapers; wheel dozers; landfill compactors; soil compactors; wide-body trucks; select work tools; machinery components; wear and maintenance components and related parts. In addition to equipment, Resource Industries also sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated component design and manufacturing and research and development for hydraulic systems and cabs. Inter-segment sales are a source of revenue for this segment.

Power & Energy: A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses as well as product support of on-highway engines. Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support. The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; electrified powertrain and zero-emission power sources and service solutions development; and diesel-electric and hybrid locomotives and components and other rail-related products and services, including remanufacturing and leasing. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies. Inter-segment sales are a source of revenue for this segment.
 
Financial Products Segment: Provides financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage and maintenance plans for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment. The segment also earns revenues from Machinery, Power & Energy, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items.
 
All Other Segment: Primarily includes activities such as: business strategy; product management and development; parts distribution; integrated logistics solutions; electronics and control systems; distribution services responsible for dealer development and administration, including a wholly owned dealer in Japan; dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts; brand management and marketing strategy; research and development for automation, electronics and software for machines and engines and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience. Results for the All Other Segment are included as a reconciling item between reportable segments and consolidated external reporting.
 
C. Segment measurement and reconciliations
 
We determine the segment profit of Construction Industries, Resource Industries, Power & Energy and our All Other Segment on a pretax basis and exclude most interest expense and certain other income (expense) items. We determine Financial Products Segment profit on a pretax basis and include other income (expense) items.

Our CODM evaluates the operating performance of the segments using segment profit as it provides insight into the financial health of each segment. The CODM reviews this metric regularly to compare the profitability of segments, identify trends, and evaluate which segments require additional resources or strategic adjustments. The CODM uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process. Additionally, the CODM monitors forecast-to-actual variances, focusing on areas where performance deviates from expectations, when evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.

There are several methodology differences between our segment reporting and our external reporting.  The following is a list of the more significant methodology differences:
 
•For Construction Industries, Resource Industries, Power & Energy and our All Other Segment, net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances. We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations. Financial Products Segment assets generally include all categories of assets.
 
•We value segment inventories and cost of sales using a current cost methodology.

•We amortize goodwill allocated to segments using a fixed amount based on a 20-year useful life. This methodology difference only impacts segment assets. We do not include goodwill amortization expense in segment profit. In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later.

•We generally manage currency exposures for operating segments, other than Financial Products, at the corporate level and do not include in segment profit the effects of changes in exchange rates on results of operations within the year. We report the net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting as a methodology difference.

•We do not include stock-based compensation expense in segment profit.

•Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.

Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 121 to 122 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows:
 
•Corporate costs: These costs are related to corporate requirements primarily for compliance and legal functions for the benefit of the entire organization.
•Restructuring income/costs: May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs, which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. See Note 24 for more information.

•Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting.

•Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting.
For the years ended December 31, 2025, 2024 and 2023, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:
Sales and Revenues by Geographic Region
(Millions of dollars)
North
 America
Latin
 America
EAME
Asia/
 Pacific
External Sales and RevenuesIntersegment Sales and RevenuesTotal Sales and Revenues
2025    
Construction Industries$14,064 $2,358 $4,595 $3,783 $24,800 $260 $25,060 
Resource Industries4,643 2,292 2,061 3,189 12,185 289 12,474 
Power & Energy15,558 1,985 5,717 3,883 27,143 5,058 32,201 
Financial Products Segment2,841 442 511 426 4,220 
1
— 4,220 
Total sales and revenues from reportable segments37,106 7,077 12,884 11,281 68,348 5,607 73,955 
All Other Segment26 — 6 14 46 281 327 
Corporate Items and Eliminations(523)(89)(97)(96)(805)(5,888)(6,693)
Total Sales and Revenues$36,609 $6,988 $12,793 $11,199 $67,589 $— $67,589 
2024
Construction Industries$14,576 $2,553 $4,315 $3,900 $25,344 $111 $25,455 
Resource Industries4,597 2,079 1,809 3,615 12,100 371 12,471 
Power & Energy13,005 1,763 5,787 3,533 24,088 4,766 28,854 
Financial Products Segment2,702 402 505 444 4,053 
1
— 4,053 
Total sales and revenues from reportable segments34,880 6,797 12,416 11,492 65,585 5,248 70,833 
All Other Segment20 (2)7 11 36 308 344 
Corporate Items and Eliminations(503)(87)(107)(115)(812)(5,556)(6,368)
Total Sales and Revenues$34,397 $6,708 $12,316 $11,388 $64,809 $— $64,809 
2023    
Construction Industries$15,343 $2,307 $5,254 $4,390 $27,294 $124 $27,418 
Resource Industries5,292 2,040 2,075 3,922 13,329 340 13,669 
Power & Energy11,982 1,983 5,929 3,461 23,355 4,646 28,001 
Financial Products Segment2,440 416 491 438 3,785 
1
— 3,785 
Total sales and revenues from reportable segments35,057 6,746 13,749 12,211 67,763 5,110 72,873 
All Other Segment28 (1)12 6 45 318 363 
Corporate Items and Eliminations(479)(80)(88)(101)(748)(5,428)(6,176)
Total Sales and Revenues$34,606 $6,665 $13,673 $12,116 $67,060 $— $67,060 
1 Includes revenues from Construction Industries, Resource Industries, Power & Energy and All Other Segment of $712 million, $711 million and $690 million in the years ended December 31, 2025, 2024 and 2023, respectively.
For the years ended December 31, 2025, 2024 and 2023, Power & Energy segment sales by end user application were as follows:

Power & Energy External Sales
(Millions of dollars)
202520242023
Oil and Gas$7,502 $6,980 $6,988 
Power Generation10,275 7,756 6,362 
Industrial4,071 3,990 4,871 
Transportation5,295 5,362 5,134 
Power & Energy External Sales$27,143 $24,088 $23,355 
Profit from Reportable Segments
(Millions of dollars)
    
Construction IndustriesResource IndustriesPower & EnergyFinancial Products Segment Total from Reportable Segments
2025
Sales and revenues$25,060 $12,474 $32,201 $4,220 $73,955 
Less 1:
Cost of goods sold18,393 9,018 22,474 — 49,885 
SG&A/R&D 2
1,902 1,513 3,330 829 7,574 
Other segment items 3
90 (45)(21)2,425 2,449 
Segment Profit$4,675 $1,988 $6,418 $966 $14,047 
2024
Sales and revenues$25,455 $12,471 $28,854 $4,053 $70,833 
Less 1:
Cost of goods sold17,326 8,452 19,796 — 45,574 
SG&A/R&D 2
1,931 1,460 3,241 771 7,403 
Other segment items 3
33 21 81 2,350 2,485 
Segment Profit$6,165 $2,538 $5,736 $932 $15,371 
2023
Sales and revenues$27,418 $13,669 $28,001 $3,785 $72,873 
Less 1:
Cost of goods sold18,658 9,439 19,875 — 47,972 
SG&A/R&D 2
1,844 1,395 3,084 691 7,014 
Other segment items 3
(59)(1)106 2,185 2,231 
Segment Profit$6,975 $2,836 $4,936 $909 $15,656 
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment income/expenses are included within the amounts shown.
2 Includes selling, general and administrative (SG&A) and research and development (R&D) expenses. The combined presentation aligns with the segment-level information that is regularly provided to the CODM.
3 Other segment items for each reportable segment primarily includes:

Construction Industries/Resource Industries/Power & Energy – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S. GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies.

Financial Products Segment – interest expense, Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses and investment and interest income, and foreign exchange (gains) losses.
Reconciliation of Consolidated profit before taxes:  
(Millions of dollars)
202520242023
Total profit from reportable segments14,047 15,371 15,656 
Profit from All Other Segment(8)43 16 
Cost centers(11)(1)(7)
Corporate costs(1,006)(889)(913)
Timing(175)133 (30)
Restructuring costs(445)(359)(780)
Methodology differences:
Inventory/cost of sales49 33 160 
Postretirement benefit income (expense)185 67 (65)
Stock-based compensation expense(230)(223)(208)
Financing costs(180)(126)(91)
Currency(81)145 6 
Goodwill impairment charge— — — 
Other income/expense methodology differences(470)(740)(624)
Other methodology differences(134)(81)(70)
Total consolidated profit before taxes$11,541 $13,373 $13,050 

Reconciliation of Assets:
(Millions of dollars)December 31,
20252024
Assets from reportable segments:
Construction Industries$5,442 $5,546 
Resource Industries6,087 6,082 
Power & Energy11,387 11,772 
Financial Products Segment41,476 36,925 
Total assets from reportable segments64,392 60,325 
Assets from All Other Segment1,516 1,403 
Items not included in segment assets:
Cash and cash equivalents9,333 6,165 
Deferred income taxes2,749 3,194 
Goodwill and intangible assets4,669 4,478 
Property, plant and equipment – net and other assets4,689 4,808 
Inventory methodology differences(3,622)(3,560)
Liabilities included in segment assets15,330 11,973 
Other(471)(1,022)
Total assets$98,585 $87,764 
Reconciliation of Depreciation and amortization:
(Millions of dollars)
202520242023
Depreciation and amortization from reportable segments:
   Construction Industries$266 $233 $221 
   Resource Industries252 230 277 
   Power & Energy661 578 551 
   Financial Products Segment719 740 731 
Total depreciation and amortization from reportable segments1,898 1,781 1,780 
Items not included in segment depreciation and amortization:
All Other Segment267 284 261 
Cost centers103 95 91 
Other(6)(7)12 
Total depreciation and amortization$2,262 $2,153 $2,144 

Reconciliation of Capital expenditures:   
(Millions of dollars)
2025
2024
2023
Capital expenditures from reportable segments:
Construction Industries$358 $323 $376 
Resource Industries353 228 210 
Power & Energy1,774 1,279 944 
Financial Products Segment1,341 1,085 1,299 
Total capital expenditures from reportable segments3,826 2,915 2,829 
Items not included in segment capital expenditures:
All Other Segment254 285 295 
Cost centers98 193 102 
Timing22 (149)(44)
Other86 (29)(90)
Total capital expenditures$4,286 $3,215 $3,092 
Enterprise-wide Disclosures:
Information about Geographic Areas:
    Property, plant and equipment - net
 
External sales and revenues 1
December 31,
(Millions of dollars)2025202420232025 2024
Inside United States$32,880 $30,624 $31,053 $9,455  $8,213 
Outside United States34,709 34,185 36,007 5,685 5,148 
Total$67,589 $64,809 $67,060 $15,140  $13,361 
1 Sales of MP&E are based on dealer or customer location. Revenues from services provided are based on where service is rendered.
v3.25.4
Restructuring income/costs
 12 Months Ended
Dec. 31, 2025
Restructuring Charges [Abstract]  
Restructuring income/costs Restructuring income/costs
 
Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, we recognize eligible separation costs at the time of employee acceptance unless the acceptance requires explicit approval by the company. For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable.

Restructuring costs for 2025, 2024 and 2023 were as follows:

(Millions of dollars)202520242023
Employee separations 1
$106 $64 $74 
Divestitures 1
30 164 586 
Contract terminations 1
4 7 7 
Long-lived asset impairments 1
17 6 3 
Other 2
291 118 110 
Total restructuring (income) costs$448 $359 $780 
1 Recognized in Other operating (income) expenses.
2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management and accelerated depreciation, all of which are primarily included in Cost of goods sold.

The restructuring costs in 2025 were related to restructuring actions across the company including write-downs in the value of inventory in the Rail division. The restructuring costs in 2024 were related to restructuring actions across the company including the divestitures of certain non-U.S. entities. The restructuring costs in 2023 were primarily related to the divestiture of the company's Longwall business within Resource Industries.
In 2025, 2024 and 2023, all restructuring costs were excluded from segment profit.
v3.25.4
Subsequent Event
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent eventOn February 3, 2026, the Federal Court of Australia approved Caterpillar's acquisition of RPMGlobal Holdings Limited, an Australian based software company. The transaction is expected to close in the final two weeks of February with a purchase price of approximately $790 million, excluding cash acquired. RPMGlobal is a leading provider of mining software solutions with deep domain expertise in mining technology enablement and data-driven software solutions at every stage of the mining lifecycle.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Andrew R.J. Bonfield [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On August 28, 2025, Andrew R.J. Bonfield, Chief Financial Officer of the Company, entered into a Rule 10b5-1 sales plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. The sales plan will be in effect until the earlier of (1) November 13, 2026 and (2) the date on which an aggregate of 20,000 shares of our common stock have been sold under the plan.
Name Andrew R.J. Bonfield
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date August 28, 2025
Expiration Date November 13, 2026
Arrangement Duration 442 days
Aggregate Available 20,000
Joseph E. Creed [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 21, 2025, Joseph E. Creed, Chief Executive Officer of the Company, entered into a Rule 10b5-1 sales plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. The sales plan will be in effect until the earlier of (1) March 5, 2026 and (2) the date on which an aggregate of 2,500 shares of our common stock have been sold under the plan.
Name Joseph E. Creed
Title Chief Executive Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 21, 2025
Expiration Date March 5, 2026
Arrangement Duration 104 days
Aggregate Available 2,500
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity is critical to advancing our overall objectives and enabling our digital efforts. As a global company, we face a wide variety of cybersecurity threats that range from common attacks such as ransomware and denial-of-service, to attacks from more advanced adversaries. Our customers, suppliers, and other partners face similar cybersecurity threats, and a cybersecurity incident impacting these entities could materially adversely affect our operations, performance and results. These cybersecurity threats and related risks make it imperative that we maintain focus on cybersecurity and systemic risks.

We maintain a comprehensive cybersecurity program which is integrated within the Company’s enterprise risk management system and encompasses the corporate information technology and operational technology environments as well as customer-facing products. Our cybersecurity program maintains a governance structure and process to identify, assess, manage, mitigate, respond to and report on cybersecurity risks. We utilize cybersecurity policies and frameworks based on industry and government standards. Our cyber risk management program controls are based on recognized best practices and standards, including the National Institute of Standards and Technology (NIST) Cyber Security Framework and the International Organization for Standardization (ISO 27001) Information Security Management System Requirements. We partner with third parties to support and evaluate our cybersecurity program. These third-party services span areas including cybersecurity maturity assessments, incident response, penetration testing, consulting on best practices, and others. We also consume threat intelligence from several paid and non-paid sources.

We maintain a 24 x 7 operations center which serves as a central location for the reporting of cybersecurity matters, provides monitoring of our global cybersecurity environment, and coordinates the investigation and remediation of alerts. As cybersecurity events occur, the cybersecurity team focuses on responding to and containing the threat and minimizing impact. In the event of an incident, the cybersecurity team assesses, among other factors, safety impact, supply chain and manufacturing disruption, data and personal information loss, business operations disruption, projected cost and potential for reputational harm, with participation from technical, legal and law enforcement support, as appropriate.

We have implemented a cybersecurity awareness program which covers topics such as phishing, social networking safety, password security, mobile device usage and potential risks associated with emerging technologies. We have mandatory training in the areas of cybersecurity, privacy, and confidential information handling. We also conduct regular phishing training and simulations for our employees and contractors. We provide specialized role-based training to technical professionals in cybersecurity, secure application development, and other focus areas. We also conduct periodic tabletop exercises to validate our preparation for cyber events.

We operate a third-party cybersecurity program with the goal of minimizing disruption to the Company’s business and production operations, strengthening supply chain resilience, and supporting the integrity of components and systems used in its products and services. We rely heavily on our supply chain to deliver our products and services to our customers, and a cybersecurity incident at a supplier, subcontractor or joint venture partner could materially adversely impact us. We assess third-party cybersecurity controls through a cybersecurity third-party risk assessment process. Identified deficiencies are addressed through a risk remediation process. For select suppliers, we engage third-party cybersecurity monitoring and alerting services, and seek to work directly with those suppliers to address potential deficiencies identified.
As of the date of this report, we do not believe that risks from any cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to affect us, including our business strategy, results of operations or financial condition. That said, as discussed more fully under Item 1A. “Risk Factors—Operational Risks— Increased information technology security threats and more sophisticated computer crime pose a risk to our systems, networks, products and services” of this Form 10-K, these threats pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data. Cybersecurity attacks could also include attacks targeting customer data or the security, integrity and/or reliability of the hardware and software installed in our products. It is possible that our information technology systems and networks, or those managed or provided by third parties, could have vulnerabilities, which could go unnoticed for a period of time. While various procedures and controls have been and are being utilized to mitigate such risks, there can be no guarantee that the actions and controls we have implemented and are implementing, or which we cause or have caused third-party service providers to implement, will be sufficient to protect and mitigate associated risks to our systems, information or other property.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We maintain a comprehensive cybersecurity program which is integrated within the Company’s enterprise risk management system and encompasses the corporate information technology and operational technology environments as well as customer-facing products. Our cybersecurity program maintains a governance structure and process to identify, assess, manage, mitigate, respond to and report on cybersecurity risks. We utilize cybersecurity policies and frameworks based on industry and government standards. Our cyber risk management program controls are based on recognized best practices and standards, including the National Institute of Standards and Technology (NIST) Cyber Security Framework and the International Organization for Standardization (ISO 27001) Information Security Management System Requirements. We partner with third parties to support and evaluate our cybersecurity program. These third-party services span areas including cybersecurity maturity assessments, incident response, penetration testing, consulting on best practices, and others. We also consume threat intelligence from several paid and non-paid sources.

We maintain a 24 x 7 operations center which serves as a central location for the reporting of cybersecurity matters, provides monitoring of our global cybersecurity environment, and coordinates the investigation and remediation of alerts. As cybersecurity events occur, the cybersecurity team focuses on responding to and containing the threat and minimizing impact. In the event of an incident, the cybersecurity team assesses, among other factors, safety impact, supply chain and manufacturing disruption, data and personal information loss, business operations disruption, projected cost and potential for reputational harm, with participation from technical, legal and law enforcement support, as appropriate.

We have implemented a cybersecurity awareness program which covers topics such as phishing, social networking safety, password security, mobile device usage and potential risks associated with emerging technologies. We have mandatory training in the areas of cybersecurity, privacy, and confidential information handling. We also conduct regular phishing training and simulations for our employees and contractors. We provide specialized role-based training to technical professionals in cybersecurity, secure application development, and other focus areas. We also conduct periodic tabletop exercises to validate our preparation for cyber events.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Caterpillar’s board has oversight for risk management with a focus on the most significant risks facing the Company, including strategic, operational, financial and legal compliance risks. The board’s risk oversight process builds upon management’s risk assessment and mitigation processes, which include an enterprise risk management program of which our cybersecurity processes are an integral component.

The board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the board. The board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. The Audit Committee (the “AC”) assists the board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, the Company’s information security program. The AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. The Company’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “CIO”) attends all bimonthly AC meetings and provides cybersecurity updates to the AC and board.
Our cybersecurity program is overseen by our CIO, who has been a Caterpillar employee for over twenty-six years. Prior to her current appointment as our CIO in September 2020, she was the Chief Information Officer for the Company’s Financial Products Division. Her extensive background in IT includes global leadership for large-scale systems transformations, cybersecurity, cloud and application management, global data center management, worldwide network, servers and storage, database management and end-user services. Our CIO leads a cross-functional cybersecurity team comprised of professionals from our product, cybersecurity, legal and compliance organizations who focus on managing the security of our connected solutions. This team manages the Company’s global IT systems, IT risk management, cybersecurity, global infrastructure and IT transformations.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Caterpillar’s board has oversight for risk management with a focus on the most significant risks facing the Company, including strategic, operational, financial and legal compliance risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the board.
Cybersecurity Risk Role of Management [Text Block] Our cybersecurity program is overseen by our CIO, who has been a Caterpillar employee for over twenty-six years. Prior to her current appointment as our CIO in September 2020, she was the Chief Information Officer for the Company’s Financial Products Division. Her extensive background in IT includes global leadership for large-scale systems transformations, cybersecurity, cloud and application management, global data center management, worldwide network, servers and storage, database management and end-user services. Our CIO leads a cross-functional cybersecurity team comprised of professionals from our product, cybersecurity, legal and compliance organizations who focus on managing the security of our connected solutions. This team manages the Company’s global IT systems, IT risk management, cybersecurity, global infrastructure and IT transformations.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Caterpillar’s board has oversight for risk management with a focus on the most significant risks facing the Company, including strategic, operational, financial and legal compliance risks. The board’s risk oversight process builds upon management’s risk assessment and mitigation processes, which include an enterprise risk management program of which our cybersecurity processes are an integral component.

The board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the board. The board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. The Audit Committee (the “AC”) assists the board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, the Company’s information security program. The AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. The Company’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “CIO”) attends all bimonthly AC meetings and provides cybersecurity updates to the AC and board.
Our cybersecurity program is overseen by our CIO, who has been a Caterpillar employee for over twenty-six years. Prior to her current appointment as our CIO in September 2020, she was the Chief Information Officer for the Company’s Financial Products Division.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our cybersecurity program is overseen by our CIO, who has been a Caterpillar employee for over twenty-six years. Prior to her current appointment as our CIO in September 2020, she was the Chief Information Officer for the Company’s Financial Products Division. Her extensive background in IT includes global leadership for large-scale systems transformations, cybersecurity, cloud and application management, global data center management, worldwide network, servers and storage, database management and end-user services. Our CIO leads a cross-functional cybersecurity team comprised of professionals from our product, cybersecurity, legal and compliance organizations who focus on managing the security of our connected solutions. This team manages the Company’s global IT systems, IT risk management, cybersecurity, global infrastructure and IT transformations.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the board. The board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. The Audit Committee (the “AC”) assists the board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, the Company’s information security program. The AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. The Company’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “CIO”) attends all bimonthly AC meetings and provides cybersecurity updates to the AC and board.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Operations and summary of significant accounting policies (Policies)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation B. Basis of presentation
The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest.

Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method.

We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE.

Cat Financial has end-user customers and dealers that are VIEs of which we are not the primary beneficiary. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.
We include shipping and handling costs in Cost of goods sold in Statement 1.  Other operating (income) expenses primarily include Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses, employee separation charges, long-lived asset impairment charges, (gains) losses on divestitures and (gains) losses on disposal of long-lived assets.
 
Prepaid expenses and other current assets in Statement 3 primarily include investments in debt and equity securities, prepaid and refundable income taxes, right of return assets, contract assets, prepaid insurance, assets held for sale, core to be returned for remanufacturing, and restricted cash and other short-term investments.

Long-term receivables - trade and other in Statement 3 includes $377 million at December 31, 2025, for recoveries from over-payments made during the importation process. At December 31, 2024, the amount was inconsequential.
Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation.
Inventories
C.     Inventories
 
We state inventories at the lower of cost or net realizable value. We principally determine cost using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 70 percent and 65 percent of total inventories at December 31, 2025 and 2024, respectively.
 
If the FIFO (first-in, first-out) method had been in use, inventories would have been $4,305 million and $3,864 million higher than reported at December 31, 2025 and 2024, respectively.
Depreciation and amortization
D.    Depreciation and amortization
 
We compute depreciation of plant and equipment principally using accelerated methods. We compute depreciation on equipment leased to others, primarily for Financial Products, using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2025, 2024 and 2023, Cat Financial depreciation on equipment leased to others was $699 million, $722 million and $713 million, respectively, which we include in Other operating (income) expenses in Statement 1. In 2025, 2024 and 2023, consolidated depreciation expense was $2,093 million, $1,983 million and $1,929 million, respectively. We compute amortization of purchased finite-lived intangibles principally using the straight-line method, generally not to exceed a period of 20 years.
Foreign currency translation
E.    Foreign currency translation
 
The functional currency for most of our MP&E consolidated subsidiaries is the U.S. dollar. The functional currency for most of our Financial Products consolidated subsidiaries is the respective local currency.  We include gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency in Other income (expense) in Statement 1. We include gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars in Accumulated other comprehensive income (loss) (AOCI) in Statement 3.
Derivative financial instruments
F.    Derivative financial instruments
 
Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates, commodity prices and certain deferred compensation plan liabilities.  Our Risk Management Policy allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts, commodity forward and option contracts and total return swap contracts. All derivatives are recorded at fair value. Foreign currency exchange rate risk
 
Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates.
 
Our MP&E operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to approximately five years. As of December 31, 2025, the maximum term of these outstanding contracts at inception was approximately 60 months.
 
We generally designate as cash flow hedges at inception of the contract any foreign currency forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. We perform designation on a specific exposure basis to support hedge accounting. The remainder of MP&E foreign currency contracts are undesignated.
 
In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. We designate float-to-float cross currency contracts as fair value hedges to protect against movements in exchange rates on floating-rate assets and liabilities.
 
B.Interest rate risk
 
Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes.
 
Our MP&E operations generally use fixed-rate debt as a source of funding.  Our objective is to minimize the cost of borrowed funds.  Our policy allows us to enter into fixed-to-floating interest rate contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract.
Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of Cat Financial’s debt portfolio with the interest rate profile of our receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move.
 
Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective.  We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate.  We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate.

If we liquidate fixed-to-floating or floating-to-fixed interest rate contracts at MP&E or Financial Products, we amortize any deferred gains or losses into earnings over the remaining term of the previously hedged item.
 
C.Commodity price risk
 
Commodity price movements create a degree of risk by affecting the price we must pay for certain raw materials. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials.
 
Our MP&E operations purchase base and precious metals embedded in the components we purchase from suppliers.  Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use.
 
Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated.

D. Deferred compensation plan liability risk
 
We are also exposed to variability in compensation expense related to certain non-qualified deferred compensation obligations to employees. We utilize total return swaps to economically hedge this exposure to offset the related compensation expense. All such total return swap contracts are undesignated.
Income taxes
G.    Income taxes
 
We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions.  Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year.  Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid.  We adjust deferred taxes for enacted changes in tax rates and tax laws.  We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.
Goodwill
H.    Goodwill
 
For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired.  We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances make it more likely than not that an impairment may have occurred.  A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition.  Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units.  When changes occur in the composition of our operating segments or reporting units, we reassign goodwill to the affected reporting units based on their relative fair values. 
We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis.  We review goodwill for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test.  If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary.  For reporting units where we perform the quantitative goodwill impairment test, we compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill.  If the fair value of the reporting unit exceeds its carrying value, we do not consider the goodwill impaired.  If the carrying value is higher than the fair value, we would recognize the difference as an impairment loss.
Estimates in financial statements
I.    Estimates in financial statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets, fair values for goodwill impairment tests, warranty liability and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes.
New accounting guidance
J.    New accounting guidance
 
A. Adoption of new accounting standards

Income tax reporting (ASU 2023-09) — In December 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. The expanded disclosures were effective for the year ending December 31, 2025, and are being applied prospectively. See Note 6, Income taxes, for additional information.

All other ASUs effective January 1, 2025, were assessed and determined that they either were not applicable or did not have a material impact on our financial statements.
B. Accounting standards issued but not yet adopted

Disaggregation of income statement expenses (ASU 2024-03) — In November 2024, the FASB issued accounting guidance to enhance transparency into the nature and function of income statement expenses. The amendments require that, on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation and amortization. The expanded annual disclosures are effective for our year ending December 31, 2027, and the expanded interim disclosures are effective in 2028, with early adoption permitted. We are in the process of evaluating the effect of this new guidance on the related disclosures.

Internal-use software costs (ASU 2025-06) — In September 2025, the FASB issued accounting guidance to modernize the accounting for internal-use software costs. Under this guidance, capitalization for internal-use software costs begins when management has authorized and committed to funding the project and it is probable the project will be completed, and the software will be used to perform the intended function. This guidance is effective January 1, 2028, with early adoption permitted, and can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. We are in the process of evaluating the effect of this new guidance on our financial statements.

All other ASUs issued but not yet adopted were assessed and determined that they either were not applicable or were not expected to have a material impact on our financial statements.
Revenue Sales and revenue recognition
A. Sales of Machinery, Power & Energy

We recognize sales of MP&E when all the following criteria are satisfied: (i) a contract with an independently owned and operated dealer or an end user exists which has commercial substance; (ii) it is probable we will collect the amount charged to the dealer or end user; and (iii) we have completed our performance obligation whereby the dealer or end user has obtained control of the product. A contract with commercial substance exists once we receive and accept a purchase order under a dealer sales agreement, or once we enter into a contract with an end user. If collectibility is not probable, the sale is deferred and not recognized until collection is probable or payment is received. Control of our products typically transfers when title and risk of ownership of the product has transferred to the dealer or end user. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when we ship the product. Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country.

Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products.  In this business, we inspect, clean and remanufacture used engines and related components (core).  In connection with the sale of our remanufactured product to dealers, we collect a deposit that is repaid if the dealer returns an acceptable core within a specified time period.  Caterpillar owns and has title to the cores when they are returned from dealers.  The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and end users.  We recognize revenue pursuant to the same transfer of control criteria as MP&E sales noted above.  At the time of sale, we recognize the deposit in Other current liabilities in Statement 3, and we recognize the core to be returned as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with usable cores).  Upon receipt of an acceptable core, we repay the deposit and relieve the liability.  We then transfer the returned core asset into inventory. In the event that the deposit is forfeited (i.e., upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. 

We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products.  The most common dealer programs provide a discount when the dealer sells a product to a targeted end user.  Generally, we estimate the cost of these discounts for each product by model by geographic region based on historical experience and known changes in merchandising programs. We report the cost of these discounts as a reduction to the transaction price when we recognize the product sale. We accrue a corresponding post-sale discount reserve in Statement 3, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, we report the difference as a change in the transaction price in the subsequent period when the final discount is paid. As a result of differences between actual and estimated payments and changes in estimates, we recognized a decrease in revenue of $497 million during 2025, related to prior period sales. Products sold to dealers in a prior period that remained in dealer inventory during 2025 were subject to merchandising program actions taken in 2025 which resulted in higher discounts paid in the current year. The change in revenue during 2024 related to prior periods sales was inconsequential.
Except for replacement parts, no right of return exists on the sale of our products.  We estimate replacement part returns based on historical experience and recognize a parts return asset in Prepaid expenses and other current assets in Statement 3, which represents our right to recover replacement parts we expect will be returned. We also recognize a refund liability in Accrued expenses in Statement 3 for the refund we expect to pay for returned parts. If actual replacement part returns differ from those estimated, we recognize the difference in the estimated replacement part return asset and refund liability in Cost of goods sold and Sales, respectively.

Trade receivables represent amounts due from dealers and end users for the sale of our products, and include amounts due from wholesale inventory financing provided by Cat Financial for a dealer's purchase of inventory. See Note 7 for further information. We recognize trade receivables from dealers and end users in Receivables – trade and other and Long-term receivables – trade and other in Statement 3. Trade receivables from dealers and end users were $9,402 million, $7,864 million and $7,923 million as of December 31, 2025, 2024 and 2023, respectively. Long-term trade receivables from dealers and end users were $1,006 million, $640 million and $589 million as of December 31, 2025, 2024 and 2023, respectively.

Our standard dealer invoice terms are established by marketing region. Our invoice terms for end user sales are established by the responsible business unit. Payments from dealers are due shortly after the time of sale. When we make a sale to a dealer, the dealer is responsible for payment even if the product is not sold to an end user. Dealers and end users must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. Regular credit evaluations of our dealers and end users are performed. Collateral generally is not required, and the majority of our trade receivables are unsecured. Various devices, such as security agreements and letters of credit, are used to protect our interests, when deemed necessary. No single dealer or end user represents a significant concentration of credit risk. Our allowance for credit losses is not significant for MP&E receivables.

For certain contracts, we invoice for payment when contractual milestones are achieved. We recognize a contract asset when a sale is recognized before achieving the contractual milestone for invoicing. We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable. Contract assets are included in Prepaid expenses and other current assets in Statement 3. Contract assets were $297 million, $238 million and $246 million as of December 31, 2025, 2024 and 2023, respectively.

We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in Statement 3. Contract liabilities were $4,678 million, $2,745 million and $2,389 million as of December 31, 2025, 2024 and 2023, respectively. We reduce the contract liability when we recognize revenue. During 2025, we recognized $1,894 million of revenue that was recorded as a contract liability at the beginning of 2025. During 2024, we recognized $1,591 million of revenue that was recorded as a contract liability at the beginning of 2024.

We have elected the practical expedient to not adjust the amount of revenue to be recognized under a contract with a dealer or end user for the effects of time value of money when the timing difference between receipt of payment and recognition of revenue is less than one year.

As of December 31, 2025, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $30.1 billion, with about one-third of the amount expected to be completed and revenue recognized in the twelve months following December 31, 2025. We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts.

We exclude sales and other related taxes from the transaction price. We account for shipping and handling costs associated with outbound freight after control over a product has transferred as a fulfillment cost which is included in Cost of goods sold.

We provide a standard manufacturer’s warranty of our products at no additional cost. At the time we recognize a sale, we record estimated future warranty costs. See Note 21 for further discussion of our product warranty liabilities.

See Note 23 for further disaggregated sales and revenues information.
B. Revenues of Financial Products

Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. We record finance revenue over the life of the related finance receivables using the interest method, including the accretion of certain direct origination costs that are deferred. Operating lease revenue is recorded on a straight-line basis over the term of the lease.
We suspend recognition of finance revenue and operating lease revenue and place an account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue, and recognize previously suspended income, when we consider collection of remaining amounts to be probable. Payments received while a finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. We write off interest earned but uncollected prior to the receivables being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible. See Note 7 for more information.
Stock-based compensation Stock-based compensation
 
Our stock-based compensation plans primarily provide for the granting of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stock’s price when the option was granted. RSUs are agreements to issue shares of Caterpillar stock at the time of vesting. PRSUs are similar to RSUs and include performance conditions in the vesting terms of the award.
 
Our long-standing practices and policies specify that the Compensation Committee (the Committee) of the Board of Directors approve all stock-based compensation awards.  The award approval process specifies the grant date, value and terms of the award.  We consistently apply the same terms and conditions to all employee grants, including Officers. The Committee approves all individual Officer grants.  We determine the number of stock-based compensation award units included in an individual’s award based on the methodology approved by the Committee. The exercise price methodology approved by the Committee is the closing price of the Company stock on the date of the grant. In June of 2014, shareholders approved the Caterpillar Inc. 2014 Long-Term Incentive Plan (the 2014 Plan) under which all new stock-based compensation awards were granted. In June of 2023, shareholders approved the Caterpillar Inc. 2023 Long-Term Incentive Plan (the 2023 Plan), which superseded and replaced the 2014 Plan.
Investments in debt and equity securities
We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in Statement 3. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited.

We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in Statement 3). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in Statement 1. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in Statement 1.
Fair value measurments Fair value measurements
 
The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.  This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques.  Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions.  In accordance with this guidance, fair value measurements are classified under the following hierarchy:
 
•Level 1 — Quoted prices for identical instruments in active markets.

•Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

•Level 3 — Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.
 
When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1.  In some cases where market prices are not available, we make use of observable market based inputs to calculate fair value, in which case the measurements are classified within Level 2.  If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates.  These measurements are classified within Level 3.

We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation.  We may therefore classify a measurement within Level 3 even though there may be significant inputs that are readily observable.
 
Fair value measurement includes the consideration of nonperformance risk.  Nonperformance risk refers to the risk that an obligation (either by a counterparty or Caterpillar) will not be fulfilled.  For financial assets traded in an active market (Level 1 and certain Level 2), the nonperformance risk is included in the market price.  For certain other financial assets and liabilities (certain Level 2 and Level 3), our fair value calculations have been adjusted accordingly.
 
Investments in debt and equity securities
We have investments in certain debt and equity securities that are recorded at fair value.  Fair values for our U.S. treasury bonds and equity securities are based upon valuations for identical instruments in active markets.  Fair values for other government debt securities, corporate debt securities and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds.
 
We also have investments in time deposits classified as held-to-maturity debt securities. The fair value of these investments is based upon valuations observed in less active markets than Level 1. These investments have a maturity of less than one year and are recorded at amortized costs, which approximate fair value.

In addition, Insurance Services has an equity investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment and is not classified within the fair value hierarchy.

See Note 11 for additional information on our investments in debt and equity securities.
 
Derivative financial instruments
The fair value of interest rate contracts is primarily based on a standard industry accepted valuation model that utilizes the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency and commodity forward, option and cross currency contracts is based on standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate. The fair value of total return swap contracts is primarily based on valuing the underlying securities or funds using pricing by industry providers and the average Secured Overnight Financing Rate (SOFR) plus a spread.
Guarantees and product warranty Guarantees and product warranty
 
We have provided various guarantees that have varying terms and limit potential payment. Under the guarantees, non-performance by the third parties could require Caterpillar to satisfy the contractual obligation by providing goods, services or financial compensation. The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $458 million and $368 million at December 31, 2025 and 2024, respectively.

We have dealer performance guarantees and third-party performance guarantees that do not limit potential payment to end users related to indemnities and other commercial contractual obligations. In addition, we have entered into contracts involving industry standard indemnifications that do not limit potential payment. For these unlimited guarantees, we are unable to estimate a maximum potential amount of future payments that could result from claims made.
We determine our product warranty liability by applying historical claim rate experience to the current field population and dealer inventory.  Generally, we base historical claim rates on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America).  We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience.
v3.25.4
Stock-based compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of assumptions used in determining fair value The following table provides the assumptions used in determining the fair value of the option awards for the years ended December 31, 2025, 2024 and 2023, respectively:
 Grant Year
 202520242023
Weighted-average dividend yield2.13 %2.40 %2.60 %
Weighted-average volatility30.5 %30.7 %31.0 %
Range of volatilities
26.6%-32.6%
26.3%-32.3%
28.5%- 35.5%
Range of risk-free interest rates
4.13%-4.4%
4.28%-5.03%
3.92%-5.03%
Weighted-average expected lives7 years7 years7 years
Schedule of Assumptions Used for Fair Value of PRSUs The following table provides the assumptions used in determining the fair value of the PRSUs granted in 2025 and 2024, respectively:
 Grant Year
 20252024
Expected volatility of the Company's stock29.5%29.8%
Risk-free interest rate3.90%4.38%
Schedule of stock-based compensation activity
Please refer to Tables I and II below for additional information on our stock-based compensation awards.  

TABLE I — Financial Information Related to Stock-based Compensation
 Stock options
 SharesWeighted-
 Average
 Exercise
 Price		Weighted-Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value 1
    
Outstanding at January 1, 2025
3,732,862 $195.28 
Granted to officers and key employees299,523 $331.62 
Exercised(997,947)$159.25 
Forfeited / expired(17,385)$232.23 
Outstanding at December 31, 2025
3,017,053 $220.52 5.81$1,063 
Exercisable at December 31, 2025
2,279,192 $192.44 5.02$867 
1    The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2025, for awards with market price greater than the exercise price. Amounts are in millions of dollars.

 RSUsPRSUs
 SharesWeighted-
Average
Grant Date Fair Value		SharesWeighted-
Average
Grant Date Fair Value
    
Outstanding at January 1, 2025
776,637 $284.36 390,013 $321.58 
Granted to officers and key employees530,834 $357.02 203,491 $345.60 
Vested(403,533)$259.27 (220,897)$253.98 
Forfeited / expired(25,108)$316.72 (8,323)$326.09 
Outstanding at December 31, 2025
878,830 $338.27 364,284 $374.52 
Schedule of financial information related to stock-based compensation
TABLE II— Additional Stock-based Award Information
(Dollars in millions except per share data)202520242023
Stock options activity:   
Weighted-average fair value per share of stock awards granted$106.04 $104.27 $75.79 
Intrinsic value of stock awards exercised$298 $354 $356 
Fair value of stock awards vested 1
$46 $56 $53 
Cash received from stock awards exercised$82 $113 $98 
RSUs activity:   
Weighted-average fair value per share of stock awards granted$357.02 $338.65 $252.24 
Fair value of stock awards vested 2
$136 $144 $126 
PRSUs activity:   
Weighted-average fair value per share of stock awards granted$345.60 $408.64 $251.97 
Fair value of stock awards vested 2
$127 $94 $80 
1 Based on the grant date fair value.
2 Based on the underlying stock’s closing market price on the vesting date.
v3.25.4
Derivative Financial Instruments and Risk Management (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Location and fair value of derivative instruments reported in the Consolidated Financial Position
The location and fair value of derivative instruments reported in Statement 3 were as follows: 

(Millions of dollars)Fair Value
December 31, 2025December 31, 2024
Assets 1
Liabilities 2
Assets 1
Liabilities 2
Designated derivatives
Foreign exchange contracts$364 $(147)$357 $(275)
Interest rate contracts59 (99)10 (201)
Total$423 $(246)$367 $(476)
Undesignated derivatives
Foreign exchange contracts$62 $(75)$91 $(56)
Commodity contracts10 (2)4 (6)
Total return swap contracts1 (2)— (33)
Total$73 $(79)$95 $(95)
1 Assets are classified as Receivables - trade and other or Long-term receivables - trade and other.
2 Liabilities are classified as Accrued expenses or Other liabilities.
Effect of derivatives designated as hedging instruments on Consolidated Results of Operations
Gains (losses) on derivative instruments are categorized as follows:

(Millions of dollars)Years ended December 31,
Gains (Losses) Recognized in Statement 11
Gains (Losses) Recognized in AOCI
Gains (Losses) Reclassified from AOCI2
202520242023202520242023202520242023
Cash Flow Hedges
Foreign exchange contracts$— $— $— $156 $53 $39 $55 $168 $(58)
Interest rate contracts— — — 16 11 9 6 39 55 
Fair Value Hedges
Foreign exchange contracts— — — (9)— — (8)— — 
Interest rate contracts(69)(139)(135)— — — — — — 
Undesignated Hedges
Foreign exchange contracts(65)162 12 — — — — — — 
Commodity contracts26 (10)10 — — — — — — 
Total return swap contracts118 40 — — — — — — — 
Total$10 $53 $(113)$163 $64 $48 $53 $207 $(3)
1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.
2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.
Cumulative basis adjustments for fair value hedges
The following amounts were recorded in Statement 3 related to cumulative basis adjustments for fair value hedges:

(Millions of dollars)Years ended December 31,
Carrying Value of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities
2025202420252024
Long-term debt due within one year$602 $483 $3 $(16)
Long-term debt due after one year5,513 5,327 (37)(170)
Total$6,115 $5,810 $(34)$(186)
Offsetting Assets and Liabilities
The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows:

(Millions of dollars)December 31, 2025December 31, 2024
AssetsLiabilitiesAssetsLiabilities
Gross Amounts Recognized$496 $(325)$462 $(571)
Financial Instruments Not Offset(160)160 (186)186 
Net Amount$336 $(165)$276 $(385)
v3.25.4
Other income (expense) (Tables)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Other income (expense)
 Years ended December 31,
(Millions of dollars)202520242023
Investment and interest income$416 $482 $494 
Foreign exchange gains (losses) 1 
(168)71 (96)
License fee income143 142 146 
Gains (losses) on securities30 39 11 
Net periodic pension and OPEB income (cost), excluding service cost
343 

165 47 
Miscellaneous income (loss)128 (86)(7)
Total$892 $813 $595 
1 Includes gains (losses) from foreign exchange derivative contracts.  See Note 4 for further details.
v3.25.4
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Reconciliation of the U.S. federal statutory rate to effective rate The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09.
Reconciliation of the U.S. federal statutory tax rate to effective tax rate:

Year ended December 31,
(Millions of dollars)2025
Taxes at U.S. statutory tax rate$2,424 21.0 %
(Decreases)/increases resulting from:
Non-U.S. tax effects
Switzerland
Federal statutory tax rate difference(310)(2.7)%
State and local income taxes, net of federal160 1.4 %
Other(27)(0.2)%
Other Non-U.S. jurisdictions342 3.0 %
Other179 1.5 %
Provision (benefit) for income taxes$2,768 24.0 %
The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the years ended December 31, 2024 and December 31, 2023 prior to the adoption of the guidance in ASU 2023-09.

Reconciliation of the U.S. federal statutory tax rate to effective tax rate:

Years ended December 31,
(Millions of dollars)20242023
Taxes at U.S. statutory rate$2,809 21.0 %$2,740 21.0 %
(Decreases) increases resulting from:    
Non-U.S. subsidiaries taxed at other than the U.S. rate186 1.4 %129 1.0 %
U.S. tax incentives(245)(1.8)%(170)(1.3)%
Tax law change related to currency translation(224)(1.7)%— — %
Other—net103 0.8 %82 0.6 %
Provision (benefit) for income taxes$2,629 19.7 %$2,781 21.3 %
Components of profit (loss) before taxes
The components of profit (loss) before taxes were: 
 Years ended December 31,
(Millions of dollars)202520242023
U.S.$5,407 $6,219 $6,463 
Non-U.S.6,134 7,154 6,587 
 $11,541 $13,373 $13,050 
Components of the provision (benefit) for income taxes
The components of the provision (benefit) for income taxes were:
 Years ended December 31,
(Millions of dollars)202520242023
Current tax provision (benefit):   
U.S. Federal1
$804 $1,584 $1,627 
Non-U.S.1,390 1,531 1,592 
U.S. State and local109 135 154 
 2,303 3,250 3,373 
Deferred tax provision (benefit):   
U.S. Federal1
393 (553)(391)
Non-U.S.56 (69)(164)
U.S. State and local16 1 (37)
 465 (621)(592)
Total provision (benefit) for income taxes$2,768 $2,629 $2,781 
1 Includes U.S. taxes related to non-U.S. earnings. We account for U.S. taxes on global intangible low-taxed income as a period cost.
Schedule of net income tax and related interest paid
In accordance with the guidance in ASU 2023-09, net income tax and related interest paid in 2025 to the following jurisdictions were:

Income tax and related interest paid (net of refunds received) to:
 December 31,
(Millions of dollars)2025
U.S. Federal$605 
U.S. State and local138 
Non-U.S.1
Switzerland500 
China264 
Brazil135 
India128 
Other436 
Net income tax and related interest paid$2,206 
1 Includes federal, state and local jurisdictions within each country.
Deferred income tax assets and liabilities The amount of deferred income taxes at December 31, included on the following lines in Statement 3, were as follows:
 
 December 31,
(Millions of dollars)20252024
Assets:  
Noncurrent deferred and refundable income taxes$2,757 $3,191 
Liabilities:  
Other liabilities494 432 
Deferred income taxes—net$2,263 $2,759 
 
The components of deferred tax assets and liabilities were:
 December 31,
(Millions of dollars)20252024
Deferred income tax assets:  
Research expenditures$1,399 $1,735 
Tax carryforwards1,298 1,346 
Employee compensation and benefits607 531 
Postemployment benefits425 560 
Post sale discounts303 260 
Warranty reserves287 303 
Other—net579 622 
 4,898 5,357 
Deferred income tax liabilities:  
Capital and intangible assets, including lease basis differences(1,366)(1,270)
Outside basis differences(429)(454)
 (1,795)(1,724)
Valuation allowance for deferred tax assets(840)(874)
Deferred income taxes—net$2,263 $2,759 
Schedule of unrecognized tax benefits roll forward
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, follows.

 
Reconciliation of unrecognized tax benefits: 1
 Years ended December 31,
(Millions of dollars)202520242023
Beginning balance$1,289 $1,223 $1,140 
Additions for tax positions related to current year68 118 94 
Additions for tax positions related to prior years35 49 42 
Reductions for tax positions related to prior years(6)(30)(19)
Reductions for settlements 2 
(29)(60)(27)
Reductions for expiration of statute of limitations(10)(11)(7)
Ending balance$1,347 $1,289 $1,223 
Amount that, if recognized, would impact the effective tax rate$1,199 $1,137 $997 

1Foreign currency impacts are included within each line as applicable.
2Includes cash payment or other reduction of assets to settle liability.
v3.25.4
Cat Financial Financing Activities (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Contractual maturities of outstanding wholesale inventory receivables We include these receivables in Receivables—trade and other and Long-term receivables—trade and other in Statement 3.
 
Contractual maturities of outstanding wholesale inventory receivables:
(Millions of dollars)December 31, 2025
Amounts Due InWholesale
Loans		Wholesale
Leases		Total
2026$1,128 $30 $1,158 
2027497 21 518 
2028256 15 271 
202991 9 100 
203039 5 44 
Thereafter17 1 18 
Total2,028 81 2,109 
Guaranteed residual value 1
39 22 61 
Unguaranteed residual value 1
9 21 30 
Less: Unearned income(22)(9)(31)
Total$2,054 $115 $2,169 
1 For Wholesale loans, represents residual value on failed sale leasebacks.
Contractual maturities of outstanding finance receivables
Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses.

Contractual maturities of outstanding finance receivables:
(Millions of dollars)December 31, 2025
Amounts Due InRetail
Loans		Retail
Leases		Total
2026$8,372 $2,561 $10,933 
20274,992 1,740 6,732 
20283,324 1,052 4,376 
20291,779 566 2,345 
2030687 207 894 
Thereafter149 54 203 
Total19,303 6,180 25,483 
Guaranteed residual value 1
7 429 436 
Unguaranteed residual value 1
8 528 536 
Less: Unearned income(642)(663)(1,305)
Total$18,676 $6,474 $25,150 
1 For Retail loans, represents residual value on failed sale leasebacks.
Allowance for credit losses in finance receivables
An analysis of the allowance for credit losses was as follows:

(Millions of dollars)December 31, 2025December 31, 2024
CustomerDealerTotalCustomerDealerTotal
Allowance for Credit Losses:   
Beginning balance$258 $4 $262 $276 $51 $327 
Write-offs(148)— (148)(125)(47)(172)
Recoveries47 — 47 57 — 57 
Provision for credit losses1
109 — 109 84 — 84 
Other7 — 7 (34)— (34)
Ending balance$273 $4 $277 $258 $4 $262 
Finance Receivables$23,635 $1,515 $25,150 $21,517 $1,512 $23,029 
1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.
Write-offs by origination year
Gross write-offs by origination year for the Customer portfolio segment were as follows:
(Millions of dollars)
Year Ended December 31, 2025
20252024202320222021PriorRevolving Finance ReceivablesTotal
North America$3 $15 $27 $12 $8 $4 $8 $77 
EAME1 5 7 3 2 1 1 20 
Asia/Pacific2 6 3 2 1 — — 14 
Latin America1 3 3 5 2 1 — 15 
Mining— 8 6 6 — 1 — 21 
Power— — — — — 1 — 1 
Total$7 $37 $46 $28 $13 $8 $9 $148 
Year Ended December 31, 2024
20242023202220212020PriorRevolving Finance ReceivablesTotal
North America$2 $19 $13 $6 $3 $1 $9 $53 
EAME1 4 5 4 2 1 — 17 
Asia/Pacific1 4 5 4 1 1 — 16 
Latin America— 3 6 5 3 8 — 25 
Mining8 3 3 — — — — 14 
Total$12 $33 $32 $19 $9 $11 $9 $125 

All $47 million of gross write-offs in the Dealer portfolio segment for the year ended December 31, 2024 were in Latin America and originated prior to 2020.
Amortized cost of finance receivables in the customer portfolio segment by origination year :
      
 (Millions of dollars)December 31, 2025
20252024202320222021PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$5,531 $3,634 $1,845 $743 $318 $20 $510 $12,601 
31-60 days past due30 42 28 18 6 1 4 129 
61-90 days past due11 14 10 5 3 — 2 45 
91+ days past due11 34 29 20 8 3 1 106 
EAME
Current1,551 929 614 316 114 44 — 3,568 
31-60 days past due5 12 6 6 2 — — 31 
61-90 days past due3 5 3 2 1 — — 14 
91+ days past due5 9 12 6 3 2 — 37 
Asia/Pacific
Current996 571 290 104 25 1 — 1,987 
31-60 days past due5 8 3 1 — — — 17 
61-90 days past due2 3 1 2 — — — 8 
91+ days past due1 1 2 2 — — — 6 
Latin America
Current984 511 212 96 15 1 4 1,823 
31-60 days past due3 6 5 3 — — — 17 
61-90 days past due2 2 2 1 — 1 — 8 
91+ days past due1 10 7 4 1 — — 23 
Mining
Current765 698 484 278 106 46 — 2,377 
31-60 days past due3 — — — — — — 3 
61-90 days past due— — — — — — — — 
91+ days past due1 1 8 — — — — 10 
Power
Current168 250 179 37 8 35 148 825 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — — — — 
Totals by Aging Category
Current9,995 6,593 3,624 1,574 586 147 662 23,181 
31-60 days past due46 68 42 28 8 1 4 197 
61-90 days past due18 24 16 10 4 1 2 75 
91+ days past due19 55 58 32 12 5 1 182 
Total Customer$10,078 $6,740 $3,740 $1,644 $610 $154 $669 $23,635 
      
 (Millions of dollars)December 31, 2024
20242023202220212020PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$5,340 $3,035 $1,567 $980 $244 $23 $385 $11,574 
31-60 days past due30 42 29 18 5 1 3 128 
61-90 days past due9 14 10 6 2 1 1 43 
91+ days past due13 37 26 16 6 2 1 101 
EAME
Current1,235 874 532 285 92 72 — 3,090 
31-60 days past due7 10 4 3 1 — — 25 
61-90 days past due3 4 1 1 1 — — 10 
91+ days past due3 14 8 6 4 1 — 36 
Asia/Pacific
Current898 531 256 87 14 2 — 1,788 
31-60 days past due4 6 5 2 — — — 17 
61-90 days past due1 1 2 1 — — — 5 
91+ days past due4 1 2 1 1 — — 9 
Latin America
Current800 363 220 60 8 2 — 1,453 
31-60 days past due4 6 5 1 — 2 — 18 
61-90 days past due1 2 1 — — — — 4 
91+ days past due2 6 8 4 1 1 — 22 
Mining
Current924 755 444 206 67 34 21 2,451 
31-60 days past due— 1 — — — — — 1 
61-90 days past due— 1 — — — — — 1 
91+ days past due4 5 5 1 — 3 — 18 
Power
Current169 184 39 43 64 56 166 721 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 2 — 2 
Totals by Aging Category
Current9,366 5,742 3,058 1,661 489 189 572 21,077 
31-60 days past due45 65 43 24 6 3 3 189 
61-90 days past due14 22 14 8 3 1 1 63 
91+ days past due26 63 49 28 12 9 1 188 
Total Customer$9,451 $5,892 $3,164 $1,721 $510 $202 $577 $21,517 
Financing receivable, nonaccrual
In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income as of December 31, were as follows:

   
December 31, 2025December 31, 2024
 Amortized CostAmortized Cost
 (Millions of dollars)
Non-accrual 91+ Still
Accruing		Non-accrual91+ Still
Accruing
   
North America$90 $20 $83 $20 
EAME35 5 33 5 
Asia/Pacific4 2 5 5 
Latin America24 1 24 — 
Mining10 — 29 — 
Power— — 2 — 
Total$163 $28 $176 $30 
Financial receivable, modified
The ending amortized cost of finance receivables modified with borrowers experiencing financial difficulty in Cat Financial's Customer portfolio segment for the years ended December 31, 2025 and 2024 were as follows:

(Millions of dollars)20252024
Amortized cost of finance receivables modified$38 $33 
Modifications as a percentage of Customer portfolio0.16 %0.15 %

The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty for the years ended December 31, were as follows:

(In months)20252024
Weighted average extension to term of modified contracts198
Weighted average payment deferral and/or interest only periods66
v3.25.4
Inventories (Tables)
 12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Inventories
Inventories (principally using the LIFO method) are comprised of the following:
 
 December 31,
(Millions of dollars)20252024
Raw materials$7,434 $6,681 
Work-in-process1,598 1,438 
Finished goods8,725 8,329 
Supplies378 379 
Total inventories$18,135 $16,827 
v3.25.4
Property, plant and equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, plant and equipment
 December 31,
(Millions of dollars)Useful
Lives (Years)		20252024
Land—$616 $612 
Buildings and land improvements
20-45
7,761 7,281 
Machinery, equipment and other
2-10
13,737 12,523 
Software
3-7
1,696 1,609 
Equipment leased to others
1-7
6,004 5,701 
Construction-in-process—2,092 1,751 
Total property, plant and equipment, at cost 31,906 29,477 
Less: Accumulated depreciation (16,766)(16,116)
Property, plant and equipment–net $15,140 $13,361 
v3.25.4
Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of intangible assets
Intangible assets were comprised of the following:
 
 December 31, 2025
(Millions of dollars)
Gross Carrying Amount1
Accumulated
Amortization1
Net
Customer relationships$2,012 $(1,877)$135 
Intellectual property479 (399)80 
Other117 (91)26 
Total finite-lived intangible assets$2,608 $(2,367)$241 
 December 31, 2024
Gross Carrying AmountAccumulated
Amortization		Net
Customer relationships$2,220 $(1,950)$270 
Intellectual property496 (401)95 
Other117 (83)34 
Total finite-lived intangible assets$2,833 $(2,434)$399 
1 For the year ended December 31, 2025, $248 million of intangible assets were fully amortized and have been removed.
Summary of expected amortization expense related to intangible assets
As of December 31, 2025, amortization expense related to intangible assets is expected to be: 

(Millions of dollars)
20262027202820292030Thereafter
$98$35$27$24$21$36
Summary of goodwill acquired
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024 were as follows:

(Millions of dollars)December 31, 2024
Other Adjustments 1
December 31, 2025
Construction Industries
Goodwill$261 $3 $264 
Impairments(22)— (22)
Net goodwill239 3 242 
Resource Industries
Goodwill4,124 37 4,161 
Impairments(1,175)— (1,175)
Net goodwill2,949 37 2,986 
Power & Energy
Goodwill2,939 40 2,979 
Impairment(925)— (925)
Net goodwill2,014 40 2,054 
All Other 2
Goodwill39 — 39 
Consolidated total
Goodwill7,363 80 7,443 
Impairments(2,122)— (2,122)
Net goodwill$5,241 $80 $5,321 
December 31, 2023
Other Adjustments 1
December 31, 2024
Construction Industries
Goodwill$277 $(16)$261 
Impairments(22)— (22)
Net goodwill255 (16)239 
Resource Industries
Goodwill4,151 (27)4,124 
Impairments(1,175)— (1,175)
Net goodwill2,976 (27)2,949 
Power & Energy
Goodwill2,959 (20)2,939 
Impairment(925)— (925)
Net goodwill2,034 (20)2,014 
All Other 2
Goodwill43 (4)39 
Consolidated total
Goodwill7,430 (67)7,363 
Impairments(2,122)— (2,122)
Net goodwill$5,308 $(67)$5,241 
1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other Segment (See Note 23).
v3.25.4
Investments in debt and equity securities (Tables)
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of available-for-sale securities
The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in Statement 3) were as follows:

Available-for-sale debt securitiesDecember 31, 2025December 31, 2024
(Millions of dollars)Cost
Basis		Unrealized
Pretax Net
Gains
(Losses)		Fair
Value		Cost
Basis		Unrealized
Pretax Net
Gains
(Losses)		Fair
Value
Government debt securities      
U.S. treasury bonds$10 $— $10 $10 $— $10 
Other U.S. and non-U.S. government bonds
72 2 74 71 (3)68 
Corporate debt securities      
Corporate bonds and other debt securities2,457 23 2,480 3,199 (29)3,170 
Asset-backed securities273 — 273 220 (1)219 
Mortgage-backed debt securities
    
U.S. governmental agency
580 (8)572 476 (33)443 
Residential
2 (1)1 2 — 2 
Commercial
141 (2)139 136 (6)130 
Total available-for-sale debt securities$3,535 $14 $3,549 $4,114 $(72)$4,042 
Available-for-sale debt securities in an unrealized loss position
Available-for-sale debt securities in an unrealized loss position:
 December 31, 2025
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities      
Other U.S. and non-U.S. government bonds$— $— $17 $— $17 $— 
Corporate debt securities
Corporate bonds130 — 306 6 436 6 
Asset-backed securities38 — 43 1 81 1 
Mortgage-backed debt securities
U.S. governmental agency3 — 307 15 310 15 
Residential— — 1 1 1 1 
Commercial6 — 89 3 95 3 
Total$177 $— $763 $26 $940 $26 

 December 31, 2024
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities
Other U.S. and non-U.S. government bonds$— $— $55 $4 $55 $4 
Corporate debt securities
Corporate bonds729 3 812 33 1,541 36 
Asset-backed securities7 — 37 2 44 2 
Mortgage-backed debt securities      
U.S. governmental agency126 3 273 30 399 33 
Commercial13 — 113 6 126 6 
Total$875 $6 $1,290 $75 $2,165 $81 
1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.
Cost basis and fair value of the available-for-sale debt securities by contractual maturity Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.
December 31, 2025
(Millions of dollars)Cost BasisFair Value
Due in one year or less$744 $748 
Due after one year through five years1,488 1,504 
Due after five years through ten years378 383 
Due after ten years202 202 
U.S. governmental agency mortgage-backed securities580 572 
Residential mortgage-backed securities2 1 
Commercial mortgage-backed securities141 139 
Total debt securities – available-for-sale$3,535 $3,549 
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities
v3.25.4
Postemployment benefit plans (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Defined benefit plan funded status, components of net amount recognized in financial position and accumulated other comprehensive income
 U.S. Pension BenefitsNon-U.S. 
Pension Benefits		Other Postretirement 
Benefits
(Millions of dollars)202520242025202420252024
Accumulated benefit obligation, end of year
$12,066 $12,171 $3,011 $2,880   
Change in benefit obligation:
Benefit obligation, beginning of year
$12,171 $13,137 $2,989 $3,265 $2,469 $2,741 
Service cost 1
— — 49 43 63 67 
Interest cost612 625 118 118 125 131 
Plan amendments— — 6 — — — 
Actuarial loss (gain) 276 (603)(93)(31)(96)(202)
Foreign currency exchange rates— — 291 (203)21 (33)
Participant contributions— — 5 5 41 45 
Benefits paid - gross(993)(988)(189)(193)(287)(286)
Less: federal subsidy on benefits paid
— — — — 6 6 
Curtailments, settlements and termination benefits
— — (45)(15)— — 
Benefit obligation, end of year$12,066 $12,171 $3,131 $2,989 $2,342 $2,469 
Change in plan assets:
Fair value of plan assets, beginning of year
$11,898 $12,738 $3,203 $3,467 $88 $144 
Actual return on plan assets1,158 96 103 74 25 25 
Foreign currency exchange rates
— — 307 (194)— — 
Company contributions50 52 70 59 261 160 
Participant contributions— — 5 5 41 45 
Benefits paid(993)(988)(189)(193)(287)(286)
Settlements and termination benefits
— — (45)(15)— — 
Fair value of plan assets, end of year
$12,113 $11,898 $3,454 $3,203 $128 $88 
Over (under) funded status
$47 $(273)$323 $214 $(2,214)$(2,381)
Amounts recognized in Statement 3:      
Other assets (non-current asset)$670 $354 $681 $541 $— $— 
Accrued wages, salaries and employee benefits (current liability)
(50)(50)(22)(21)(146)(204)
Liability for postemployment benefits (non-current liability) 2
(573)(577)(336)(306)(2,068)(2,177)
Net (liability) asset recognized$47 $(273)$323 $214 $(2,214)$(2,381)
Amounts recognized in AOCI (pre-tax):
Prior service cost (credit)$— $— $27 $21 $— $(5)
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate5.3 %5.6 %4.3 %4.1 %5.3 %5.6 %
Rate of compensation increase 1
— %— %2.2 %2.2 %4.0 %4.0 %

1 All U.S. pension benefits are frozen, and accordingly there is no longer any service cost and certain assumptions are no longer applicable.
2 The Liability for postemployment benefits reported in Statement 3 includes liabilities for other postemployment benefits and non-qualified deferred compensation plans. For 2025 and 2024, these liabilities were $861 million and $697 million, respectively.
Schedule of benefit obligation in excess of plan assets
 U.S. Pension BenefitsNon-U.S. 
Pension Benefits
(Millions of dollars)2025202420252024
Pension plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation$623 $627 $412 $370 
Fair value of plan assets$— $— $54 $43 
Pension plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation$623 $627 $300 $279 
Fair value of plan assets$— $— $19 $7 
Components of net periodic benefit cost, other changes in plan assets and benefits obligations
 U.S. Pension BenefitsNon-U.S. Pension BenefitsOther Postretirement Benefits
(Millions of dollars)202520242023202520242023202520242023
Net periodic benefit cost:         
Service cost 1
$— $— $— $49 $43 $40 $63 $67 $67 
Interest cost612 625 656 118 118 124 125 131 144 
Expected return on plan assets(720)(699)(689)(171)(165)(163)(9)(7)(11)
Curtailments, settlements and termination benefits— — — — — 1 — — — 
Amortization of prior service cost (credit) — — — 1 — — (5)(14)(12)
Actuarial loss (gain) 2
(162)— (138)(26)59 172 (106)(213)(131)
Net periodic benefit cost (benefit) 3
$(270)$(74)$(171)$(29)$55 $174 $68 $(36)$57 
Amounts recognized in other comprehensive income (pre-tax):         
Current year prior service cost (credit)
$— $— $— $7 $— $1 $— $— $(2)
Amortization of prior service (cost) credit — — — (1)— — 5 14 12 
Total recognized in other comprehensive income
— — — 6 — 1 5 14 10 
Total recognized in net periodic cost and other comprehensive income
$(270)$(74)$(171)$(23)$55 $175 $73 $(22)$67 
Weighted-average assumptions used to determine net periodic benefit cost:         
Discount rate used to measure service cost 1
— %— %— %3.2 %3.6 %3.8 %5.7 %5.1 %5.4 %
Discount rate used to measure interest cost
5.3 %5.0 %5.2 %3.9 %3.9 %4.2 %5.3 %5.0 %5.3 %
Expected rate of return on plan assets6.3 %5.7 %5.8 %5.2 %5.1 %5.2 %6.1 %7.4 %7.4 %
Rate of compensation increase 1
— %— %— %2.2 %2.3 %2.3 %4.0 %4.0 %4.0 %
1 All U.S. pension benefits are frozen, and accordingly there is no longer any service cost and certain assumptions are no longer applicable.
2 Actuarial loss (gain) represents the effects of actual results differing from our assumptions and the effects of changing assumptions. We recognize actuarial loss (gain) immediately through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement.
3 The service cost component is included in Operating costs and all other components are included in Other income (expense) in Statement 1.
Schedule of expected contributions, expected benefit payments and gross prescription drug subsidy receipts
The following table presents information about expected contributions and benefit payments for pension and other postretirement benefit plans:
 
(Millions of dollars)2026
Expected employer contributions:   
U.S. Pension Benefits$50 
Non-U.S. Pension Benefits$64 
Other Postretirement Benefits$246 
Expected benefit payments:202620272028202920302031-2035Total
U.S. Pension Benefits$1,000 $985 $975 $965 $950 $4,510 $9,385 
Non-U.S. Pension Benefits$215 $200 $210 $215 $220 $1,120 $2,180 
Other Postretirement Benefits$225 $225 $220 $215 $210 $1,010 $2,105 
Expected Medicare Part D subsidy:$6 $5 $5 $5 $4 $17 $42 
Fair value of pension and other postretirement benefit plan assets, by category
The fair value of the pension and other postretirement benefit plan assets by category is summarized below:
 
 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
U.S. Pension     
Equity securities:     
U.S. equities$1,049 $1 $22 $50 $1,122 
Non-U.S. equities998 — 14 — 1,012 
Fixed income securities:    
U.S. corporate bonds— 5,598 28 91 5,717 
Non-U.S. corporate bonds— 958 — — 958 
U.S. government bonds— 2,619 — — 2,619 
U.S. governmental agency mortgage-backed securities— 184 — — 184 
Non-U.S. government bonds— 151 — — 151 
Cash, short-term instruments and other68 10 — 272 350 
Total U.S. pension assets$2,115 $9,521 $64 $413 $12,113 

 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
U.S. Pension    
Equity securities:    
U.S. equities$1,087 $— $28 $62 $1,177 
Non-U.S. equities946 — 10 — 956 
Fixed income securities:    
U.S. corporate bonds— 5,396 33 36 5,465 
Non-U.S. corporate bonds— 972 — — 972 
U.S. government bonds— 2,656 — — 2,656 
U.S. governmental agency mortgage-backed securities— 180 — — 180 
Non-U.S. government bonds— 132 — — 132 
Cash, short-term instruments and other48 12 — 300 360 
Total U.S. pension assets$2,081 $9,348 $71 $398 $11,898 
 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Non-U.S. Pension    
Equity securities:    
U.S. equities$78 $— $— $— $78 
Non-U.S. equities232 27 — 3 262 
Global equities 1 
41 — — 10 51 
Fixed income securities:    
U.S. corporate bonds— 89 — — 89 
Non-U.S. corporate bonds— 917 — — 917 
U.S. government bonds— 73 — — 73 
Non-U.S. government bonds— 606 — — 606 
Global fixed income 1 
— 113 — 213 326 
Real estate— 250 — 10 260 
Insurance contracts— — 577 — 577 
Cash, short-term instruments and other 2 
24 191 — — 215 
Total non-U.S. pension assets$375 $2,266 $577 $236 $3,454 

 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Non-U.S. Pension    
Equity securities:    
U.S. equities$74 $— $— $— $74 
Non-U.S. equities197 26 — 20 243 
Global equities 1 
32 — — 17 49 
Fixed income securities:    
U.S. corporate bonds— 87 — — 87 
Non-U.S. corporate bonds— 468 — — 468 
U.S. government bonds— 61 — — 61 
Non-U.S. government bonds— 916 — — 916 
Global fixed income 1 
— 104 — 193 297 
Real estate— 207 — 9 216 
Insurance contracts— — 601 — 601 
Cash, short-term instruments and other 2 
35 156 — — 191 
Total non-U.S. pension assets$338 $2,025 $601 $239 $3,203 
1 Includes funds that invest in both U.S. and non-U.S. securities.
2 Includes funds that invest in multiple asset classes, hedge funds and other.
 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Other Postretirement Benefits    
Equity securities:    
U.S. equities$46 $— $— $3 $49 
Non-U.S. equities23 — — 3 26 
Fixed income securities:    
U.S. corporate bonds— — — 21 21 
Cash, short-term instruments and other— — — 32 32 
Total other postretirement benefit assets$69 $— $— $59 $128 
 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal Assets at Fair Value
Other Postretirement Benefits    
Equity securities:    
U.S. equities$41 $— $— $2 $43 
Non-U.S. equities18 — — 2 20 
Fixed income securities:    
U.S. corporate bonds— — — 20 20 
Cash, short-term instruments and other— — — 5 5 
Total other postretirement benefit assets$59 $— $— $29 $88 
Company costs related to U.S. and non-U.S. defined contribution plans
Total company costs related to U.S. and non-U.S. defined contribution plans were as follows:
 
(Millions of dollars)202520242023
U.S. plans 1
$696 $610 $567 
Non-U.S. plans139 131 114 
 $835 $741 $681 
1 Includes costs related to our non-qualified deferred compensation plans. We utilize total return swaps to economically hedge this exposure to offset the related costs. See Note 4 for additional information.
v3.25.4
Short-term borrowings (Tables)
 12 Months Ended
Dec. 31, 2025
Short-Term Debt [Abstract]  
Short-term borrowings
 December 31,
(Millions of dollars)20252024
Machinery, Power & Energy:  
Notes payable to banks$— $— 
 — — 
Financial Products:  
Commercial paper5,408 3,946 
Notes payable to banks106 165 
Demand notes— 282 
 5,514 4,393 
Total short-term borrowings$5,514 $4,393 
 
The weighted-average interest rates on short-term borrowings outstanding were:

 December 31,
 20252024
Commercial paper3.8 %4.5 %
Notes payable to banks10.1 %10.8 %
Demand notes— %4.2 %
v3.25.4
Long-term debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-term debt
 December 31,
(Millions of dollars)
Effective Yield to Maturity 1
20252024
Machinery, Power & Energy:  
Notes—$759 million of 5.200% due 2041 2
5.27%$753 $753 
Debentures—$193 million of 6.625% due 2028 2
6.68%193 193 
Debentures—$500 million of 2.600% due 2029 2
2.67%499 498 
Debentures—$800 million of 2.600% due 2030 2
2.72%796 796 
Debentures—$500 million of 1.900% due 2031 2
2.04%497 496 
Debentures—$242 million of 7.300% due 2031 2
7.38%241 241 
Debentures—$1,700 million of 5.200% due 2035 2
5.30%1,688 — 
Debentures—$307 million of 5.300% due 2035 2
8.64%241 237 
Debentures—$460 million of 6.050% due 2036 2
6.12%457 457 
Debentures—$65 million of 8.250% due 2038 2
8.38%64 64 
Debentures—$160 million of 6.950% due 2042 2
7.02%158 158 
Debentures—$1,722 million of 3.803% due 2042 2
6.39%1,395 1,375 
Debentures—$500 million of 4.300% due 2044
4.39%494 494 
Debentures—$1,000 million of 3.250% due 2049 2
3.34%985 984 
Debentures—$1,200 million of 3.250% due 2050 2
3.32%1,187 1,186 
Debentures—$300 million of 5.500% due 2055 2
5.74%289 — 
Debentures—$500 million of 4.750% due 2064
4.81%494 494 
Debentures—$246 million of 7.375% due 2097 2
7.51%241 241 
Finance lease obligations & other 3
6 (103)
Total Machinery, Power & Energy10,678 8,564 
Financial Products:  
Medium-term notes19,675 18,568 
Other343 219 
Total Financial Products20,018 18,787 
Total long-term debt due after one year$30,696 $27,351 

1    Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs.
2    Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.
3    Includes $(88) million and $(170) million of mark-to-market adjustments related to fair value interest rate swap contracts as of December 31, 2025 and 2024, respectively.
Aggregate amounts of maturities of long-term debt
The aggregate amounts of maturities of long-term debt during each of the years 2026 through 2030, including amounts due within one year and classified as current, are:

 December 31,
(Millions of dollars)20262027202820292030
Machinery, Power & Energy$35 $30 $219 $522 $805 
Financial Products7,085 8,890 7,528 2,590 456 
 $7,120 $8,920 $7,747 $3,112 $1,261 
v3.25.4
Credit commitments (Tables)
 12 Months Ended
Dec. 31, 2025
Credit Commitments [Abstract]  
Summary of Credit Commitments
 December 31, 2025
(Millions of dollars)ConsolidatedMachinery,
Power & Energy		Financial
Products
Credit lines available:   
Global credit facilities$11,500 $2,875 $8,625 
Other external4,337 896 3,441 
Total credit lines available15,837 3,771 12,066 
Less: Commercial paper outstanding(5,408)— (5,408)
Less: Utilized credit(771)— (771)
Available credit$9,658 $3,771 $5,887 
v3.25.4
Profit per share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Computations of Profit Per Share
Computations of profit per share:
(Dollars in millions except per share data)202520242023
Profit for the period (A) 1 
$8,884 $10,792 $10,335 
Determination of shares (in millions):   
Weighted average number of common shares outstanding (B)470.0 486.7 510.6 
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price2.3 2.7 3.0 
Average common shares outstanding for fully diluted computation (C) 2
472.3 489.4 513.6 
Profit per share of common stock:   
Assuming no dilution (A/B)$18.90 $22.17 $20.24 
Assuming full dilution (A/C) 2
$18.81 $22.05 $20.12 
Shares outstanding as of December 31, (in millions)465.3 477.9 499.4 
1Profit attributable to common shareholders.
2Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
v3.25.4
Accumulated other comprehensive income (loss) (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of accumulated other comprehensive income (loss) Changes in the balances for each component of AOCI were as follows:
(Millions of dollars)
202520242023
Foreign currency translation
Beginning balance$(2,310)$(1,782)$(2,328)
Gains (losses) on foreign currency translation559 (535)32 
Less: Tax provision /(benefit)2 21 (21)
Net gains (losses) on foreign currency translation557 (556)53 
(Gains) losses reclassified to earnings— 28 493 
Less: Tax provision /(benefit)— — — 
Net (gains) losses reclassified to earnings— 28 493 
Other comprehensive income (loss), net of tax557 (528)546 
Ending balance$(1,753)$(2,310)$(1,782)
Pension and other postretirement benefits
Beginning balance$(61)$(49)$(39)
Current year prior service credit (cost)(7)— 1 
Less: Tax provision /(benefit)(2)— — 
Net current year prior service credit (cost)(5)— 1 
Amortization of prior service (credit) cost(4)(14)(12)
Less: Tax provision /(benefit)— (2)(1)
Net amortization of prior service (credit) cost(4)(12)(11)
Other comprehensive income (loss), net of tax(9)(12)(10)
Ending balance$(70)$(61)$(49)
Derivative financial instruments
Beginning balance$(46)$67 $28 
Gains (losses) deferred163 64 48 
Less: Tax provision /(benefit)38 27 11 
Net gains (losses) deferred125 37 37 
(Gains) losses reclassified to earnings(53)(207)3 
Less: Tax provision /(benefit)(13)(57)1 
Net (gains) losses reclassified to earnings(40)(150)2 
Other comprehensive income (loss), net of tax85 (113)39 
Ending balance$39 $(46)$67 
Available-for-sale securities
Beginning balance$(54)$(56)$(118)
Gains (losses) deferred78 (2)72 
Less: Tax provision /(benefit)18 — 11 
Net gains (losses) deferred60 (2)61 
(Gains) losses reclassified to earnings8 4 1 
Less: Tax provision /(benefit)2 — — 
Net (gains) losses reclassified to earnings6 4 1 
Other comprehensive income (loss), net of tax66 2 62 
Ending balance$12 $(54)$(56)
Total AOCI Ending Balance at December 31,$(1,772)$(2,471)$(1,820)
v3.25.4
Fair value disclosures (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Assets and liabilities measured on a recurring basis at fair value
Assets and liabilities measured on a recurring basis at fair value included in Statement 3 as of December 31, 2025 and 2024 were as follows:

 December 31, 2025
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal
Assets / Liabilities,
at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 74 — — 74 
Corporate debt securities   
Corporate bonds and other debt securities— 2,480 — — 2,480 
Asset-backed securities— 273 — — 273 
Mortgage-backed debt securities   
U.S. governmental agency— 572 — — 572 
Residential— 1 — — 1 
Commercial— 139 — — 139 
Total debt securities10 3,539 — — 3,549 
Equity securities 
Large capitalization value283 — — — 283 
Smaller company growth65 — — — 65 
REIT— — — 174 174 
Total equity securities348 — — 174 522 
Derivative financial instruments - assets
Foreign currency contracts - net— 204 — — 204 
Commodity contracts - net— 8 — — 8 
Total assets$358 $3,751 $— $174 $4,283 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $40 $— $— $40 
Total return swap contracts - net— 1 — — 1 
Total liabilities$— $41 $— $— $41 
 December 31, 2024
(Millions of dollars)Level 1Level 2Level 3Measured at NAVTotal
 Assets / Liabilities,
 at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 68 — — 68 
Corporate debt securities    
Corporate bonds and other debt securities— 3,170 — — 3,170 
Asset-backed securities— 219 — — 219 
Mortgage-backed debt securities    
U.S. governmental agency— 443 — — 443 
Residential— 2 — — 2 
Commercial— 130 — — 130 
Total debt securities10 4,032 — — 4,042 
Equity securities    
Large capitalization value261 — — 261 
Smaller company growth41 — — 41 
REIT— — — 167 167 
Total equity securities302 — — 167 469 
Derivative financial instruments - assets
Foreign currency contracts - net— 117 — — 117 
Total assets$312 $4,149 $— $167 $4,628 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $191 $— $— $191 
Commodity contracts - net— 2 — — 2 
Total return swap contracts - net— 33 — — 33 
Total liabilities$— $226 $— $— $226 
Fair values of financial instruments
Our financial instruments not carried at fair value were as follows:
 
 20252024 
(Millions of dollars)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Fair Value LevelsReference
Assets at December 31,     
Finance receivables–net (excluding finance leases 1)
$17,922 $17,648 $16,180 $15,788 3Note 7
Wholesale inventory receivables–net (excluding finance leases 1)
1,931 1,871 1,568 1,527 3Note 7
Liabilities at December 31,     
Long-term debt (including amounts due within one year):     
Machinery, Power & Energy10,713 10,363 8,610 7,980 2Note 14
Financial Products27,103 27,204 25,406 25,304 2Note 14
 1 Represents finance leases and failed sale leasebacks of $7,189 million and $6,769 million at December 31, 2025 and 2024, respectively.
v3.25.4
Supplier Finance Programs (Tables)
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Supplier Finance Programs
The rollforward of our outstanding obligations confirmed as valid under the Programs for the Years ended December 31, were as follows:

(Millions of dollars)20252024
Confirmed obligations outstanding, beginning of period$830 $803 
Invoices confirmed during the period5,669 5,140 
Confirmed invoices paid during the period(5,563)(5,113)
Confirmed obligations outstanding, end of period$936 $830 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Components of lease cost
The components of lease costs were as follows:
(Millions of dollars)
Years Ended December 31,
202520242023
Operating lease cost$192 $185 $189 
Short-term lease cost$67 $65 $62 
Schedule of supplemental balance sheet information related to leases
Supplemental information related to leases was as follows:

(Millions of dollars)
December 31, 2025December 31, 2024
Operating Leases
Other assets$708 $592 
Other current liabilities$158 $143 
Other liabilities$570 $459 
Weighted average remaining lease term
Operating leases7 years7 years
Weighted average discount rates
Operating leases4 %3 %
Schedule of maturities of operating lease liabilities
Maturities of operating lease liabilities were as follows:

(Millions of dollars)December 31, 2025
Amounts Due In
2026$183 
2027149 
2028115 
202998 
203074 
Thereafter223 
Total lease payments842 
Less: Imputed interest(114)
Total$728 
Schedule of supplemental cash flow information related to leases
Supplemental cash flow information related to leases was as follows:

(Millions of dollars)
Years ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
   Operating cash flows from operating leases$185 $179 $180 
Right-of-use assets obtained in exchange for lease obligations:
   Operating leases$259 $187 $148 
Schedule of equipment leased to others
The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows:

December 31,
(Millions of dollars)20252024
Equipment leased to others - at original cost$6,004 $5,701 
Less: Accumulated depreciation(1,999)(1,927)
Equipment leased to others - net$4,005 $3,774 
Schedule of payments due for operating leases
Payments due for operating leases as of December 31, 2025, were as follows:

(Millions of dollars)
20262027202820292030ThereafterTotal
$896$598$397$200$104$80$2,275
Revenue from finance and operating lease
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows:

(Millions of dollars)
Year ended December 31,
202520242023
Finance lease revenue$473 $440 $420 
Operating lease revenue1,216 1,212 1,166 
Total$1,689 $1,652 $1,586 
v3.25.4
Guarantees and product warranty (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Product warranty
The reconciliation of the change in our product warranty liability balances for the years ended December 31, was as follows:
 
(Millions of dollars)20252024
Warranty liability, beginning of period$1,700 $1,894 
Reduction in liability (payments)(836)(824)
Increase in liability (new warranties)762 630 
Warranty liability, end of period$1,626 $1,700 
v3.25.4
Segment information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Disaggregation of revenue
For the years ended December 31, 2025, 2024 and 2023, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:
Sales and Revenues by Geographic Region
(Millions of dollars)
North
 America
Latin
 America
EAME
Asia/
 Pacific
External Sales and RevenuesIntersegment Sales and RevenuesTotal Sales and Revenues
2025    
Construction Industries$14,064 $2,358 $4,595 $3,783 $24,800 $260 $25,060 
Resource Industries4,643 2,292 2,061 3,189 12,185 289 12,474 
Power & Energy15,558 1,985 5,717 3,883 27,143 5,058 32,201 
Financial Products Segment2,841 442 511 426 4,220 
1
— 4,220 
Total sales and revenues from reportable segments37,106 7,077 12,884 11,281 68,348 5,607 73,955 
All Other Segment26 — 6 14 46 281 327 
Corporate Items and Eliminations(523)(89)(97)(96)(805)(5,888)(6,693)
Total Sales and Revenues$36,609 $6,988 $12,793 $11,199 $67,589 $— $67,589 
2024
Construction Industries$14,576 $2,553 $4,315 $3,900 $25,344 $111 $25,455 
Resource Industries4,597 2,079 1,809 3,615 12,100 371 12,471 
Power & Energy13,005 1,763 5,787 3,533 24,088 4,766 28,854 
Financial Products Segment2,702 402 505 444 4,053 
1
— 4,053 
Total sales and revenues from reportable segments34,880 6,797 12,416 11,492 65,585 5,248 70,833 
All Other Segment20 (2)7 11 36 308 344 
Corporate Items and Eliminations(503)(87)(107)(115)(812)(5,556)(6,368)
Total Sales and Revenues$34,397 $6,708 $12,316 $11,388 $64,809 $— $64,809 
2023    
Construction Industries$15,343 $2,307 $5,254 $4,390 $27,294 $124 $27,418 
Resource Industries5,292 2,040 2,075 3,922 13,329 340 13,669 
Power & Energy11,982 1,983 5,929 3,461 23,355 4,646 28,001 
Financial Products Segment2,440 416 491 438 3,785 
1
— 3,785 
Total sales and revenues from reportable segments35,057 6,746 13,749 12,211 67,763 5,110 72,873 
All Other Segment28 (1)12 6 45 318 363 
Corporate Items and Eliminations(479)(80)(88)(101)(748)(5,428)(6,176)
Total Sales and Revenues$34,606 $6,665 $13,673 $12,116 $67,060 $— $67,060 
1 Includes revenues from Construction Industries, Resource Industries, Power & Energy and All Other Segment of $712 million, $711 million and $690 million in the years ended December 31, 2025, 2024 and 2023, respectively.
For the years ended December 31, 2025, 2024 and 2023, Power & Energy segment sales by end user application were as follows:

Power & Energy External Sales
(Millions of dollars)
202520242023
Oil and Gas$7,502 $6,980 $6,988 
Power Generation10,275 7,756 6,362 
Industrial4,071 3,990 4,871 
Transportation5,295 5,362 5,134 
Power & Energy External Sales$27,143 $24,088 $23,355 
Reconciliation of profit from reportable segments
Profit from Reportable Segments
(Millions of dollars)
    
Construction IndustriesResource IndustriesPower & EnergyFinancial Products Segment Total from Reportable Segments
2025
Sales and revenues$25,060 $12,474 $32,201 $4,220 $73,955 
Less 1:
Cost of goods sold18,393 9,018 22,474 — 49,885 
SG&A/R&D 2
1,902 1,513 3,330 829 7,574 
Other segment items 3
90 (45)(21)2,425 2,449 
Segment Profit$4,675 $1,988 $6,418 $966 $14,047 
2024
Sales and revenues$25,455 $12,471 $28,854 $4,053 $70,833 
Less 1:
Cost of goods sold17,326 8,452 19,796 — 45,574 
SG&A/R&D 2
1,931 1,460 3,241 771 7,403 
Other segment items 3
33 21 81 2,350 2,485 
Segment Profit$6,165 $2,538 $5,736 $932 $15,371 
2023
Sales and revenues$27,418 $13,669 $28,001 $3,785 $72,873 
Less 1:
Cost of goods sold18,658 9,439 19,875 — 47,972 
SG&A/R&D 2
1,844 1,395 3,084 691 7,014 
Other segment items 3
(59)(1)106 2,185 2,231 
Segment Profit$6,975 $2,836 $4,936 $909 $15,656 
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment income/expenses are included within the amounts shown.
2 Includes selling, general and administrative (SG&A) and research and development (R&D) expenses. The combined presentation aligns with the segment-level information that is regularly provided to the CODM.
3 Other segment items for each reportable segment primarily includes:

Construction Industries/Resource Industries/Power & Energy – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S. GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies.

Financial Products Segment – interest expense, Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses and investment and interest income, and foreign exchange (gains) losses.
Reconciliation of consolidated profit before taxes
Reconciliation of Consolidated profit before taxes:  
(Millions of dollars)
202520242023
Total profit from reportable segments14,047 15,371 15,656 
Profit from All Other Segment(8)43 16 
Cost centers(11)(1)(7)
Corporate costs(1,006)(889)(913)
Timing(175)133 (30)
Restructuring costs(445)(359)(780)
Methodology differences:
Inventory/cost of sales49 33 160 
Postretirement benefit income (expense)185 67 (65)
Stock-based compensation expense(230)(223)(208)
Financing costs(180)(126)(91)
Currency(81)145 6 
Goodwill impairment charge— — — 
Other income/expense methodology differences(470)(740)(624)
Other methodology differences(134)(81)(70)
Total consolidated profit before taxes$11,541 $13,373 $13,050 
Reconciliation of assets
Reconciliation of Assets:
(Millions of dollars)December 31,
20252024
Assets from reportable segments:
Construction Industries$5,442 $5,546 
Resource Industries6,087 6,082 
Power & Energy11,387 11,772 
Financial Products Segment41,476 36,925 
Total assets from reportable segments64,392 60,325 
Assets from All Other Segment1,516 1,403 
Items not included in segment assets:
Cash and cash equivalents9,333 6,165 
Deferred income taxes2,749 3,194 
Goodwill and intangible assets4,669 4,478 
Property, plant and equipment – net and other assets4,689 4,808 
Inventory methodology differences(3,622)(3,560)
Liabilities included in segment assets15,330 11,973 
Other(471)(1,022)
Total assets$98,585 $87,764 
Reconciliation of depreciation and amortization
Reconciliation of Depreciation and amortization:
(Millions of dollars)
202520242023
Depreciation and amortization from reportable segments:
   Construction Industries$266 $233 $221 
   Resource Industries252 230 277 
   Power & Energy661 578 551 
   Financial Products Segment719 740 731 
Total depreciation and amortization from reportable segments1,898 1,781 1,780 
Items not included in segment depreciation and amortization:
All Other Segment267 284 261 
Cost centers103 95 91 
Other(6)(7)12 
Total depreciation and amortization$2,262 $2,153 $2,144 
Reconciliation of capital expenditures
Reconciliation of Capital expenditures:   
(Millions of dollars)
2025
2024
2023
Capital expenditures from reportable segments:
Construction Industries$358 $323 $376 
Resource Industries353 228 210 
Power & Energy1,774 1,279 944 
Financial Products Segment1,341 1,085 1,299 
Total capital expenditures from reportable segments3,826 2,915 2,829 
Items not included in segment capital expenditures:
All Other Segment254 285 295 
Cost centers98 193 102 
Timing22 (149)(44)
Other86 (29)(90)
Total capital expenditures$4,286 $3,215 $3,092 
Information about geographic areas
Enterprise-wide Disclosures:
Information about Geographic Areas:
    Property, plant and equipment - net
 
External sales and revenues 1
December 31,
(Millions of dollars)2025202420232025 2024
Inside United States$32,880 $30,624 $31,053 $9,455  $8,213 
Outside United States34,709 34,185 36,007 5,685 5,148 
Total$67,589 $64,809 $67,060 $15,140  $13,361 
1 Sales of MP&E are based on dealer or customer location. Revenues from services provided are based on where service is rendered.
v3.25.4
Restructuring income/costs (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring Charges [Abstract]  
Restructuring and related costs
Restructuring costs for 2025, 2024 and 2023 were as follows:

(Millions of dollars)202520242023
Employee separations 1
$106 $64 $74 
Divestitures 1
30 164 586 
Contract terminations 1
4 7 7 
Long-lived asset impairments 1
17 6 3 
Other 2
291 118 110 
Total restructuring (income) costs$448 $359 $780 
1 Recognized in Other operating (income) expenses.
2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management and accelerated depreciation, all of which are primarily included in Cost of goods sold.
v3.25.4
Operations and summary of significant accounting policies (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
country
dealer
distributor
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Operations and summary of significant accounting policies      
Number of countries served by dealers | country 190    
Long-term receivables – trade and other $ 2,142 $ 1,225  
Percentage of value of inventories on the LIFO basis to total inventories 70.00% 65.00%  
Incremental value of inventory if FIFO method had been in use $ 4,305 $ 3,864  
Consolidated depreciation expense 2,093 1,983 $ 1,929
Recoveries From Over-Payments      
Operations and summary of significant accounting policies      
Long-term receivables – trade and other 377    
Financial Products      
Operations and summary of significant accounting policies      
Depreciation on equipment leased to others $ 699 $ 722 $ 713
Inside United States      
Operations and summary of significant accounting policies      
Number of dealers | dealer 41    
Countries Outside United States      
Operations and summary of significant accounting policies      
Number of dealers | dealer 109    
Perkins      
Operations and summary of significant accounting policies      
Number of countries where distributors are located | country 183    
Number of distributors | distributor 86    
FG Wilson      
Operations and summary of significant accounting policies      
Number of countries where distributors are located | country 159    
Number of distributors | distributor 108    
Maximum      
Operations and summary of significant accounting policies      
Maximum amortizable period of purchased intangibles (in years) 20 years    
v3.25.4
Sales and revenue recognition (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Decrease in revenue $ 497    
Trade receivables 9,402 $ 7,864 $ 7,923
Long-term trade receivables 1,006 640 589
Contract assets 297 238 246
Contract liabilities 4,678 2,745 $ 2,389
Revenue 1,894 $ 1,591  
Performance obligations $ 30,100    
Period after which collection of future income is not probable 120 days    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Expected timing of satisfaction 12 months    
Remaining performance obligation percentage 50.00%    
v3.25.4
Stock-based compensation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Common shares issued from treasury stock for stock-based compensation (in shares) 1,433,723 1,972,037 2,497,799
Number of shares authorized under the plans (in shares) 42,500,000    
Number of shares available for grant (in shares) 39,336,515    
Required minimum age of a participant upon separation from service to meet the criteria for Long Service Separation (in years) 55 years    
Minimum term of service to meet criteria for Long Service Separation (in years) 5 years    
Requisite service period 6 months    
Term life of SARs and option awards (in years) 10 years    
Term life of vested options/SARs from separation date (in years) 5 years    
Stock-based compensation expense, before tax (in dollars) $ 242.0 $ 223.0 $ 208.0
Income tax benefit corresponding to stock-based compensation expense 38.0 30.0 33.0
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars) $ 209.1    
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years) 1 year 10 months 24 days    
Cash tax benefits realized from stock awards exercised $ 81.0 $ 90.0 $ 89.0
Percentage of award vested on first anniversary of grant date      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Portion of the award vested on each anniversary of the grant date 33.33%    
Percentage of award vested on second anniversary of grant date      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Portion of the award vested on each anniversary of the grant date 33.33%    
Percentage of award vested on third anniversary of grant date      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Portion of the award vested on each anniversary of the grant date 33.33%    
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Graded vesting period of awards granted 3 years    
Outstanding (in shares) 878,830 776,637  
Weighted average remaining contractual life (in years) 1 year 8 months 12 days    
RSUs | Percentage of award vested on first anniversary of grant date      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Portion of the award vested on each anniversary of the grant date 33.33%    
RSUs | Percentage of award vested on second anniversary of grant date      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Portion of the award vested on each anniversary of the grant date 33.33%    
RSUs | Percentage of award vested on third anniversary of grant date      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Portion of the award vested on each anniversary of the grant date 33.33%    
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Cliff vested period of awards granted 3 years    
Requisite service period 6 months    
Outstanding (in shares) 364,284 390,013  
Weighted average remaining contractual life (in years) 1 year 6 months    
v3.25.4
Stock-based compensation - Summary of assumptions used in determining fair value (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average dividend yield 2.13% 2.40% 2.60%
Weighted-average volatility 30.50% 30.70% 31.00%
Volatilities, minimum 26.60% 26.30% 28.50%
Volatilities, maximum 32.60% 32.30% 35.50%
Risk-free interest rates, minimum 4.13% 4.28% 3.92%
Risk-free interest rates, maximum 4.40% 5.03% 5.03%
Weighted-average expected lives 7 years 7 years 7 years
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility of the Company's stock 29.50% 29.80%  
Risk-free interest rate 3.90% 4.38%  
v3.25.4
Stock-based compensation - Schedule of stock-based compensation activity (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Shares      
Outstanding (in shares) 3,732,862    
Granted to officers and key employees (in shares) 299,523    
Exercised (in shares) (997,947)    
Forfeited/expired (in shares) (17,385)    
Outstanding (in shares) 3,017,053 3,732,862  
Exercisable (in shares) 2,279,192    
Weighted- Average Exercise Price      
Outstanding (in dollars per shares) $ 195.28    
Granted to officers and key employees (in dollars per shares) 331.62    
Exercised (in dollars per shares) 159.25    
Forfeited / expired (in dollars per shares) 232.23    
Outstanding (in dollars per shares) 220.52 $ 195.28  
Exercisable at year-end (in dollars per share) $ 192.44    
Weighted-Average Remaining Contractual Life (Years), Outstanding 5 years 9 months 21 days    
Weighted-Average Remaining Contractual Life (Years), Exercisable 5 years 7 days    
Aggregate Intrinsic Value, Outstanding $ 1,063    
Aggregate Intrinsic Value, Exercisable $ 867    
RSUs      
Shares      
Beginning of year, outstanding (in shares) 776,637    
Granted to officers and key employees (in shares) 530,834    
Vested (in shares) (403,533)    
Forfeited/expired (in shares) (25,108)    
End of year, outstanding (in shares) 878,830 776,637  
Weighted- Average Grant Date Fair Value      
Outstanding (in dollars per shares) $ 284.36    
Granted to officers and key employees (in dollars per shares) 357.02 $ 338.65 $ 252.24
Vested (in dollars per shares) 259.27    
Forfeited (in dollars per shares) 316.72    
Outstanding (in dollars per shares) $ 338.27 $ 284.36  
PRSUs      
Shares      
Beginning of year, outstanding (in shares) 390,013    
Granted to officers and key employees (in shares) 203,491    
Vested (in shares) (220,897)    
Forfeited/expired (in shares) (8,323)    
End of year, outstanding (in shares) 364,284 390,013  
Weighted- Average Grant Date Fair Value      
Outstanding (in dollars per shares) $ 321.58    
Granted to officers and key employees (in dollars per shares) 345.60 $ 408.64 $ 251.97
Vested (in dollars per shares) 253.98    
Forfeited (in dollars per shares) 326.09    
Outstanding (in dollars per shares) $ 374.52 $ 321.58  
v3.25.4
Stock-based compensation - Schedule of financial information related to stock-based compensation (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value per share of stock awards granted (in dollars per share) $ 106.04 $ 104.27 $ 75.79
Intrinsic value of stock awards exercised $ 298 $ 354 $ 356
Fair value of stock awards vested 46 56 53
Cash received from stock awards exercised $ 82 $ 113 $ 98
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value per share of stock awards granted (in dollars per share) $ 357.02 $ 338.65 $ 252.24
Fair value of stock awards vested $ 136 $ 144 $ 126
PRSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value per share of stock awards granted (in dollars per share) $ 345.60 $ 408.64 $ 251.97
Fair value of stock awards vested $ 127 $ 94 $ 80
v3.25.4
Derivative Financial Instruments and Risk Management (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Maximum length of time policy, foreign currency cash flow hedge 5 years  
Foreign currency cash flow hedges, maximum period (in months) 60 months  
Commodity forward and option contracts, maximum period (in years) 5 years  
Derivative instruments $ 29.3 $ 27.0
v3.25.4
Derivative Financial instruments and Risk Management- Location and fair value (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Derivatives Fair Value    
Assets $ 496 $ 462
Liabilities (325) (571)
Designated derivatives    
Derivatives Fair Value    
Assets 423 367
Liabilities (246) (476)
Designated derivatives | Foreign exchange contracts    
Derivatives Fair Value    
Assets 364 357
Liabilities (147) (275)
Designated derivatives | Interest rate contracts    
Derivatives Fair Value    
Assets 59 10
Liabilities (99) (201)
Undesignated derivatives    
Derivatives Fair Value    
Assets 73 95
Liabilities (79) (95)
Undesignated derivatives | Foreign exchange contracts    
Derivatives Fair Value    
Assets 62 91
Liabilities (75) (56)
Undesignated derivatives | Commodity contracts    
Derivatives Fair Value    
Assets 10 4
Liabilities (2) (6)
Undesignated derivatives | Total return swap contracts    
Derivatives Fair Value    
Assets 1 0
Liabilities $ (2) $ (33)
v3.25.4
Derivative Financial instruments and Risk Management- Gain and Loss on Hedging instruments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss)      
Gains (Losses) recognized in Statement $ 10 $ 53 $ (113)
Designated derivatives | Cash Flow Hedges      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized in AOCI 163 64 48
Gains (losses) reclassified from AOCI 53 207 (3)
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized in AOCI 156 53 39
Gains (losses) reclassified from AOCI 55 168 (58)
Designated derivatives | Cash Flow Hedges | Interest rate contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized in AOCI 16 11 9
Gains (losses) reclassified from AOCI 6 39 55
Designated derivatives | Fair Value Hedging | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized in AOCI (9)    
Gains (losses) reclassified from AOCI (8)    
Designated derivatives | Fair Value Hedging | Interest rate contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) recognized in Statement (69) (139) (135)
Undesignated derivatives | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) recognized in Statement (65) 162 12
Undesignated derivatives | Commodity contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) recognized in Statement 26 (10) 10
Undesignated derivatives | Total return swap contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) recognized in Statement $ 118 $ 40 $ 0
v3.25.4
Derivative Financial Instruments and Risk Management- Fair value hedges (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Derivatives Fair Value    
Carrying Value of the Hedged Liabilities $ 6,115 $ 5,810
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities (34) (186)
Long-term debt due within one year    
Derivatives Fair Value    
Carrying Value of the Hedged Liabilities 602 483
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities $ 3 $ (16)
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Long-term debt due within one year Long-term debt due within one year
Long-term debt due after one year    
Derivatives Fair Value    
Carrying Value of the Hedged Liabilities $ 5,513 $ 5,327
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities $ (37) $ (170)
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Long-term debt due after one year Long-term debt due after one year
v3.25.4
Derivative Financial instruments and Risk Management- Effect of net settlement provisions upon default or termination (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets    
Gross Amounts Recognized $ 496 $ 462
Financial Instruments Not Offset (160) (186)
Net Amount 336 276
Liabilities    
Gross Amounts Recognized (325) (571)
Financial Instruments Not Offset 160 186
Net Amount $ (165) $ (385)
v3.25.4
Other income (expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income and Expenses [Abstract]      
Investment and interest income $ 416 $ 482 $ 494
Foreign exchange gains (losses) (168) 71 (96)
License fee income 143 142 146
Gains (losses) on securities 30 39 11
Net periodic pension and OPEB income (cost), excluding service cost 343 165 47
Miscellaneous income (loss) 128 (86) (7)
Total $ 892 $ 813 $ 595
v3.25.4
Income taxes - Reconciliation of the U.S. federal statutory rate to effective rate, in accordance with ASU 2023-09 (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Taxes at U.S. statutory rate $ 2,424 $ 2,809 $ 2,740
Taxes at U. S. statutory rate (as a percent) 21.00% 21.00% 21.00%
Amount      
Federal statutory tax rate difference   $ 186 $ 129
Other, Switzerland   103 82
Other $ 179    
Provision (benefit) for income taxes $ 2,768 $ 2,629 $ 2,781
Percent      
Federal statutory tax rate difference   1.40% 1.00%
Other, Switzerland   0.80% 0.60%
Other 1.50%    
Provision (benefit) for income taxes 24.00% 19.70% 21.30%
Switzerland      
Amount      
Federal statutory tax rate difference $ (310)    
State and local income taxes, net of federal 160    
Other, Switzerland $ (27)    
Percent      
Federal statutory tax rate difference (2.70%)    
State and local income taxes, net of federal 1.40%    
Other, Switzerland (0.20%)    
Other Non-U.S. jurisdictions      
Amount      
Federal statutory tax rate difference $ 342    
Percent      
Federal statutory tax rate difference 3.00%    
v3.25.4
Income taxes - Reconciliation of the U.S. federal statutory rate to effective rate, prior to adoption of ASU 2023-09 (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Taxes at U.S. statutory rate $ 2,424 $ 2,809 $ 2,740
Taxes at U. S. statutory rate (as a percent) 21.00% 21.00% 21.00%
(Decreases) increases resulting from:      
Other Non-U.S. jurisdictions   $ 186 $ 129
U.S. tax incentives   (245) (170)
Tax law change related to currency translation   (224) 0
Other—net   103 82
Total provision (benefit) for income taxes $ 2,768 $ 2,629 $ 2,781
Other Non-U.S. jurisdictions   1.40% 1.00%
U.S. tax incentives (as a percent)   (1.80%) (1.30%)
Tax law change related to currency translation (as a percent)   (1.70%) 0.00%
Other--net (as a percent)   0.80% 0.60%
Provision (benefit) for income taxes (as a percent) 24.00% 19.70% 21.30%
v3.25.4
Income taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Tax law change related to currency translation   $ 224 $ 0
Income taxes paid $ 2,206 3,126 2,949
Valuation allowance for deferred tax assets 840 874  
Interest and penalties 67 35 $ 36
Interest and penalties, accrued 268 $ 190  
Domestic Tax Jurisdiction      
Effective Income Tax Rate Reconciliation [Line Items]      
Operating loss carryforwards, subject to expiration 174    
Valuation allowance for deferred tax assets 171    
U.S. state taxing jurisdictions      
Effective Income Tax Rate Reconciliation [Line Items]      
Operating loss carryforwards, subject to expiration 72    
Operating loss carryforwards, not subject to expiration 14    
Valuation allowance for deferred tax assets 52    
Non-U.S.      
Effective Income Tax Rate Reconciliation [Line Items]      
Operating loss carryforwards, subject to expiration 274    
Operating loss carryforwards, not subject to expiration 764    
Valuation allowance for deferred tax assets $ 617    
v3.25.4
Income taxes - Components of profit (loss) before taxes (Details ) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Components of profit (loss) before taxes      
U.S. $ 5,407 $ 6,219 $ 6,463
Non-U.S. 6,134 7,154 6,587
Consolidated profit before taxes $ 11,541 $ 13,373 $ 13,050
v3.25.4
Income taxes - Components of the provision (benefit) for income taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current tax provision (benefit):      
U.S. Federal $ 804 $ 1,584 $ 1,627
Non-U.S. 1,390 1,531 1,592
U.S. State and local 109 135 154
Current tax provision (benefit) 2,303 3,250 3,373
Deferred tax provision (benefit):      
U.S. Federal 393 (553) (391)
Non-U.S. 56 (69) (164)
U.S. State and local 16 1 (37)
Deferred tax provision (benefit) 465 (621) (592)
Total provision (benefit) for income taxes $ 2,768 $ 2,629 $ 2,781
v3.25.4
Income taxes - Schedule of net income tax and related interest paid (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Income tax and related interest paid (net of refunds received) to:  
U.S. Federal $ 605
U.S. State and local 138
Non-U.S.  
Net income tax and related interest paid 2,206
Switzerland  
Non-U.S.  
Total Non-U.S. 500
China  
Non-U.S.  
Total Non-U.S. 264
Brazil  
Non-U.S.  
Total Non-U.S. 135
India  
Non-U.S.  
Total Non-U.S. 128
Other  
Non-U.S.  
Total Non-U.S. $ 436
v3.25.4
Income taxes - Deferred income tax assets and liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets:    
Noncurrent deferred and refundable income taxes $ 2,757 $ 3,191
Liabilities:    
Other liabilities 494 432
Deferred income taxes—net 2,263 2,759
Deferred income tax assets:    
Research expenditures 1,399 1,735
Tax carryforwards 1,298 1,346
Employee compensation and benefits 607 531
Postemployment benefits 425 560
Post sale discounts 303 260
Warranty reserves 287 303
Other—net 579 622
Deferred income tax assets, total 4,898 5,357
Deferred income tax liabilities:    
Capital and intangible assets, including lease basis differences (1,366) (1,270)
Outside basis differences (429) (454)
Deferred income tax liabilities, total (1,795) (1,724)
Valuation allowance for deferred tax assets (840) (874)
Deferred income taxes—net $ 2,263 $ 2,759
v3.25.4
Income taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits      
Beginning balance $ 1,289 $ 1,223 $ 1,140
Additions for tax positions related to current year 68 118 94
Additions for tax positions related to prior years 35 49 42
Reductions for tax positions related to prior years (6) (30) (19)
Reductions for settlements (29) (60) (27)
Reductions for expiration of statute of limitations (10) (11) (7)
Ending balance 1,347 1,289 1,223
Amount that, if recognized, would impact the effective tax rate $ 1,199 $ 1,137 $ 997
v3.25.4
Cat Financial Financing Activities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Finance receivables    
Wholesale inventory receivables $ 25,150 $ 23,029
Weighted average term 51 months  
Weighted average remaining term 28 months  
Period after which unpaid installments are considered as past due 30 days  
Extended Maturity    
Finance receivables    
Financing receivable, borrowers not considered to be experiencing financial difficulty, maximum period 6 months  
Payment Deferral    
Finance receivables    
Financing receivable, borrowers not considered to be experiencing financial difficulty, maximum period 4 months  
Dealer    
Finance receivables    
Wholesale inventory receivables $ 1,515 1,512
Financing receivable, modified in period, amount 0 0
Dealer | Latin America    
Finance receivables    
Non-accrual 0  
Customer    
Finance receivables    
Wholesale inventory receivables 23,635 21,517
Financing receivable, modified in period, amount $ 38 $ 33
Financing receivable, modified, percentage 0.16% 0.15%
Wholesale receivables    
Finance receivables    
Wholesale inventory receivables $ 2,169 $ 1,750
v3.25.4
Cat Financial Financing Activities - Contractual maturities of outstanding wholesale inventory receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finance receivables    
Total $ 25,150 $ 23,029
Wholesale receivables    
Finance receivables    
2026 1,158  
2027 518  
2028 271  
2029 100  
2030 44  
Thereafter 18  
Total 2,109  
Guaranteed residual value 61  
Unguaranteed residual value 30  
Less: Unearned income (31)  
Total 2,169 $ 1,750
Wholesale receivables | Wholesale Loans    
Finance receivables    
2026 1,128  
2027 497  
2028 256  
2029 91  
2030 39  
Thereafter 17  
Total 2,028  
Guaranteed residual value 39  
Unguaranteed residual value 9  
Less: Unearned income (22)  
Total 2,054  
Wholesale receivables | Wholesale Leases    
Finance receivables    
2026 30  
2027 21  
2028 15  
2029 9  
2030 5  
Thereafter 1  
Total 81  
Guaranteed residual value 22  
Unguaranteed residual value 21  
Less: Unearned income (9)  
Total $ 115  
v3.25.4
Cat Financial Financing Activities - Contractual maturities of outstanding finance receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Contractual maturities of outstanding finance receivables    
Total $ 25,150 $ 23,029
Finance Receivables    
Contractual maturities of outstanding finance receivables    
2026 10,933  
2027 6,732  
2028 4,376  
2029 2,345  
2030 894  
Thereafter 203  
Total 25,483  
Guaranteed residual value 436  
Unguaranteed residual value 536  
Less: Unearned income (1,305)  
Total 25,150  
Finance Receivables | Retail Loans    
Contractual maturities of outstanding finance receivables    
2026 8,372  
2027 4,992  
2028 3,324  
2029 1,779  
2030 687  
Thereafter 149  
Total 19,303  
Guaranteed residual value 7  
Unguaranteed residual value 8  
Less: Unearned income (642)  
Total 18,676  
Finance Receivables | Retail Leases    
Contractual maturities of outstanding finance receivables    
2026 2,561  
2027 1,740  
2028 1,052  
2029 566  
2030 207  
Thereafter 54  
Total 6,180  
Guaranteed residual value 429  
Unguaranteed residual value 528  
Less: Unearned income (663)  
Total $ 6,474  
v3.25.4
Cat Financial Financing Activities - Write Offs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Write-offs by origination year    
Total $ 148 $ 172
Customer    
Write-offs by origination year    
2025 & 2024 7 12
2024 & 2023 37 33
2023 & 2022 46 32
2022 & 2021 28 19
2021 & 2020 13 9
Prior 8 11
Revolving Finance Receivables 9 9
Total 148 125
Customer | North America    
Write-offs by origination year    
2025 & 2024 3 2
2024 & 2023 15 19
2023 & 2022 27 13
2022 & 2021 12 6
2021 & 2020 8 3
Prior 4 1
Revolving Finance Receivables 8 9
Total 77 53
Customer | EAME    
Write-offs by origination year    
2025 & 2024 1 1
2024 & 2023 5 4
2023 & 2022 7 5
2022 & 2021 3 4
2021 & 2020 2 2
Prior 1 1
Revolving Finance Receivables 1 0
Total 20 17
Customer | Asia/Pacific    
Write-offs by origination year    
2025 & 2024 2 1
2024 & 2023 6 4
2023 & 2022 3 5
2022 & 2021 2 4
2021 & 2020 1 1
Prior 0 1
Revolving Finance Receivables 0 0
Total 14 16
Customer | Latin America    
Write-offs by origination year    
2025 & 2024 1 0
2024 & 2023 3 3
2023 & 2022 3 6
2022 & 2021 5 5
2021 & 2020 2 3
Prior 1 8
Revolving Finance Receivables 0 0
Total 15 25
Customer | Mining    
Write-offs by origination year    
2025 & 2024 0 8
2024 & 2023 8 3
2023 & 2022 6 3
2022 & 2021 6 0
2021 & 2020 0 0
Prior 1 0
Revolving Finance Receivables 0 0
Total 21 14
Customer | Power    
Write-offs by origination year    
2025 & 2024 0  
2024 & 2023 0  
2023 & 2022 0  
2022 & 2021 0  
2021 & 2020 0  
Prior 1  
Revolving Finance Receivables 0  
Total 1  
Dealer    
Write-offs by origination year    
Total $ 0 47
Dealer | Latin America    
Write-offs by origination year    
Prior   $ 47
v3.25.4
Cat Financial Financing Activities - Allowance for credit losses in finance receivables (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Allowance for Credit Losses:    
Beginning balance $ 262 $ 327
Write-offs (148) (172)
Recoveries 47 57
Provision for credit losses 109 84
Other 7 (34)
Ending balance 277 262
Finance Receivables 25,150 23,029
Customer    
Allowance for Credit Losses:    
Beginning balance 258 276
Write-offs (148) (125)
Recoveries 47 57
Provision for credit losses 109 84
Other 7 (34)
Ending balance 273 258
Finance Receivables 23,635 21,517
Dealer    
Allowance for Credit Losses:    
Beginning balance 4 51
Write-offs 0 (47)
Recoveries 0 0
Provision for credit losses 0 0
Other 0 0
Ending balance 4 4
Finance Receivables $ 1,515 $ 1,512
v3.25.4
Cat Financial Financing Activities - Amortized cost of finance receivables in the customer portfolio segment by origination year (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Credit Quality Indicator    
Total $ 25,150 $ 23,029
Customer    
Financing Receivable, Credit Quality Indicator    
Total 23,635 21,517
Finance Receivables    
Financing Receivable, Credit Quality Indicator    
Total 25,150  
Finance Receivables | Customer    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 10,078 9,451
2024 and 2023, respectively 6,740 5,892
2023 and 2022, respectively 3,740 3,164
2022 and 2021, respectively 1,644 1,721
2021 and 2020, respectively 610 510
Prior 154 202
Revolving Finance Receivables 669 577
Total 23,635 21,517
Finance Receivables | Customer | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 9,995 9,366
2024 and 2023, respectively 6,593 5,742
2023 and 2022, respectively 3,624 3,058
2022 and 2021, respectively 1,574 1,661
2021 and 2020, respectively 586 489
Prior 147 189
Revolving Finance Receivables 662 572
Total 23,181 21,077
Finance Receivables | Customer | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 46 45
2024 and 2023, respectively 68 65
2023 and 2022, respectively 42 43
2022 and 2021, respectively 28 24
2021 and 2020, respectively 8 6
Prior 1 3
Revolving Finance Receivables 4 3
Total 197 189
Finance Receivables | Customer | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 18 14
2024 and 2023, respectively 24 22
2023 and 2022, respectively 16 14
2022 and 2021, respectively 10 8
2021 and 2020, respectively 4 3
Prior 1 1
Revolving Finance Receivables 2 1
Total 75 63
Finance Receivables | Customer | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 19 26
2024 and 2023, respectively 55 63
2023 and 2022, respectively 58 49
2022 and 2021, respectively 32 28
2021 and 2020, respectively 12 12
Prior 5 9
Revolving Finance Receivables 1 1
Total 182 188
Finance Receivables | Customer | North America | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5,531 5,340
2024 and 2023, respectively 3,634 3,035
2023 and 2022, respectively 1,845 1,567
2022 and 2021, respectively 743 980
2021 and 2020, respectively 318 244
Prior 20 23
Revolving Finance Receivables 510 385
Total 12,601 11,574
Finance Receivables | Customer | North America | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 30 30
2024 and 2023, respectively 42 42
2023 and 2022, respectively 28 29
2022 and 2021, respectively 18 18
2021 and 2020, respectively 6 5
Prior 1 1
Revolving Finance Receivables 4 3
Total 129 128
Finance Receivables | Customer | North America | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 11 9
2024 and 2023, respectively 14 14
2023 and 2022, respectively 10 10
2022 and 2021, respectively 5 6
2021 and 2020, respectively 3 2
Prior 0 1
Revolving Finance Receivables 2 1
Total 45 43
Finance Receivables | Customer | North America | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 11 13
2024 and 2023, respectively 34 37
2023 and 2022, respectively 29 26
2022 and 2021, respectively 20 16
2021 and 2020, respectively 8 6
Prior 3 2
Revolving Finance Receivables 1 1
Total 106 101
Finance Receivables | Customer | EAME | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1,551 1,235
2024 and 2023, respectively 929 874
2023 and 2022, respectively 614 532
2022 and 2021, respectively 316 285
2021 and 2020, respectively 114 92
Prior 44 72
Revolving Finance Receivables 0 0
Total 3,568 3,090
Finance Receivables | Customer | EAME | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5 7
2024 and 2023, respectively 12 10
2023 and 2022, respectively 6 4
2022 and 2021, respectively 6 3
2021 and 2020, respectively 2 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 31 25
Finance Receivables | Customer | EAME | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 3 3
2024 and 2023, respectively 5 4
2023 and 2022, respectively 3 1
2022 and 2021, respectively 2 1
2021 and 2020, respectively 1 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 14 10
Finance Receivables | Customer | EAME | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5 3
2024 and 2023, respectively 9 14
2023 and 2022, respectively 12 8
2022 and 2021, respectively 6 6
2021 and 2020, respectively 3 4
Prior 2 1
Revolving Finance Receivables 0 0
Total 37 36
Finance Receivables | Customer | Asia/Pacific | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 996 898
2024 and 2023, respectively 571 531
2023 and 2022, respectively 290 256
2022 and 2021, respectively 104 87
2021 and 2020, respectively 25 14
Prior 1 2
Revolving Finance Receivables 0 0
Total 1,987 1,788
Finance Receivables | Customer | Asia/Pacific | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5 4
2024 and 2023, respectively 8 6
2023 and 2022, respectively 3 5
2022 and 2021, respectively 1 2
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 17 17
Finance Receivables | Customer | Asia/Pacific | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 2 1
2024 and 2023, respectively 3 1
2023 and 2022, respectively 1 2
2022 and 2021, respectively 2 1
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 8 5
Finance Receivables | Customer | Asia/Pacific | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1 4
2024 and 2023, respectively 1 1
2023 and 2022, respectively 2 2
2022 and 2021, respectively 2 1
2021 and 2020, respectively 0 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 6 9
Finance Receivables | Customer | Latin America | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 984 800
2024 and 2023, respectively 511 363
2023 and 2022, respectively 212 220
2022 and 2021, respectively 96 60
2021 and 2020, respectively 15 8
Prior 1 2
Revolving Finance Receivables 4 0
Total 1,823 1,453
Finance Receivables | Customer | Latin America | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 3 4
2024 and 2023, respectively 6 6
2023 and 2022, respectively 5 5
2022 and 2021, respectively 3 1
2021 and 2020, respectively 0 0
Prior 0 2
Revolving Finance Receivables 0 0
Total 17 18
Finance Receivables | Customer | Latin America | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 2 1
2024 and 2023, respectively 2 2
2023 and 2022, respectively 2 1
2022 and 2021, respectively 1 0
2021 and 2020, respectively 0 0
Prior 1 0
Revolving Finance Receivables 0 0
Total 8 4
Finance Receivables | Customer | Latin America | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1 2
2024 and 2023, respectively 10 6
2023 and 2022, respectively 7 8
2022 and 2021, respectively 4 4
2021 and 2020, respectively 1 1
Prior 0 1
Revolving Finance Receivables 0 0
Total 23 22
Finance Receivables | Customer | Mining | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 765 924
2024 and 2023, respectively 698 755
2023 and 2022, respectively 484 444
2022 and 2021, respectively 278 206
2021 and 2020, respectively 106 67
Prior 46 34
Revolving Finance Receivables 0 21
Total 2,377 2,451
Finance Receivables | Customer | Mining | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 3 0
2024 and 2023, respectively 0 1
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 3 1
Finance Receivables | Customer | Mining | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 1
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 0 1
Finance Receivables | Customer | Mining | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1 4
2024 and 2023, respectively 1 5
2023 and 2022, respectively 8 5
2022 and 2021, respectively 0 1
2021 and 2020, respectively 0 0
Prior 0 3
Revolving Finance Receivables 0 0
Total 10 18
Finance Receivables | Customer | Power | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 168 169
2024 and 2023, respectively 250 184
2023 and 2022, respectively 179 39
2022 and 2021, respectively 37 43
2021 and 2020, respectively 8 64
Prior 35 56
Revolving Finance Receivables 148 166
Total 825 721
Finance Receivables | Customer | Power | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 0 0
Finance Receivables | Customer | Power | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 0 0
Finance Receivables | Customer | Power | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 2
Revolving Finance Receivables 0 0
Total $ 0 $ 2
v3.25.4
Cat Financial Financing Activities - Financing receivable, nonaccrual (Details) - Finance Receivables - Customer - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Nonaccrual [Line Items]    
Non-accrual $ 163 $ 176
91+ Still Accruing 28 30
North America    
Financing Receivable, Nonaccrual [Line Items]    
Non-accrual 90 83
91+ Still Accruing 20 20
EAME    
Financing Receivable, Nonaccrual [Line Items]    
Non-accrual 35 33
91+ Still Accruing 5 5
Asia/Pacific    
Financing Receivable, Nonaccrual [Line Items]    
Non-accrual 4 5
91+ Still Accruing 2 5
Latin America    
Financing Receivable, Nonaccrual [Line Items]    
Non-accrual 24 24
91+ Still Accruing 1 0
Mining    
Financing Receivable, Nonaccrual [Line Items]    
Non-accrual 10 29
91+ Still Accruing 0 0
Power    
Financing Receivable, Nonaccrual [Line Items]    
Non-accrual 0 2
91+ Still Accruing $ 0 $ 0
v3.25.4
Cat Financial Financing Activities - Financial receivable, modified (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Customer    
Finance receivables    
Financing receivable, modified, percentage 0.16% 0.15%
Financing receivable, modified in period, amount $ 38 $ 33
Extended Maturity    
Finance receivables    
Financing receivable, weighted average term increase 19 months 8 months
Payment Deferral    
Finance receivables    
Financing receivable, weighted average term increase 6 months 6 months
v3.25.4
Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 7,434 $ 6,681
Work-in-process 1,598 1,438
Finished goods 8,725 8,329
Supplies 378 379
Total inventories $ 18,135 $ 16,827
v3.25.4
Property, plant and equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property, plant and equipment    
Total property, plant and equipment, at cost $ 31,906 $ 29,477
Less: Accumulated depreciation (16,766) (16,116)
Property, plant and equipment–net 15,140 13,361
Land    
Property, plant and equipment    
Property, plant, and equipment, excluding equipment leased to others, at cost 616 612
Buildings and land improvements    
Property, plant and equipment    
Property, plant, and equipment, excluding equipment leased to others, at cost 7,761 7,281
Machinery , equipment, other, and equipment leased to others    
Property, plant and equipment    
Property, plant, and equipment, excluding equipment leased to others, at cost 13,737 12,523
Equipment leased to others 6,004 5,701
Software    
Property, plant and equipment    
Property, plant, and equipment, excluding equipment leased to others, at cost 1,696 1,609
Construction-in-process    
Property, plant and equipment    
Property, plant, and equipment, excluding equipment leased to others, at cost $ 2,092 $ 1,751
Minimum | Buildings and land improvements    
Property, plant and equipment    
Useful Lives (Years) 20 years  
Minimum | Machinery , equipment, other, and equipment leased to others    
Property, plant and equipment    
Useful Lives (Years) 2 years  
Minimum | Software    
Property, plant and equipment    
Useful Lives (Years) 3 years  
Minimum | Equipment leased to others    
Property, plant and equipment    
Useful Lives (Years) 1 year  
Maximum | Buildings and land improvements    
Property, plant and equipment    
Useful Lives (Years) 45 years  
Maximum | Machinery , equipment, other, and equipment leased to others    
Property, plant and equipment    
Useful Lives (Years) 10 years  
Maximum | Software    
Property, plant and equipment    
Useful Lives (Years) 7 years  
Maximum | Equipment leased to others    
Property, plant and equipment    
Useful Lives (Years) 7 years  
v3.25.4
Intangible Assets and Goodwill - Summary of intangible assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Intangible assets    
Gross carrying amount, finite-lived intangible assets $ 2,608 $ 2,833
Accumulated Amortization, finite-lived intangible assets (2,367) (2,434)
Net, finite-lived intangible assets 241 399
Fully amortized finite-lived intangibles 248  
Customer relationships    
Intangible assets    
Gross carrying amount, finite-lived intangible assets 2,012 2,220
Accumulated Amortization, finite-lived intangible assets (1,877) (1,950)
Net, finite-lived intangible assets 135 270
Intellectual property    
Intangible assets    
Gross carrying amount, finite-lived intangible assets 479 496
Accumulated Amortization, finite-lived intangible assets (399) (401)
Net, finite-lived intangible assets 80 95
Other    
Intangible assets    
Gross carrying amount, finite-lived intangible assets 117 117
Accumulated Amortization, finite-lived intangible assets (91) (83)
Net, finite-lived intangible assets $ 26 $ 34
v3.25.4
Intangible Assets and Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 169 $ 176 $ 218
Goodwill impairment charge $ 0 $ 0 $ 0
v3.25.4
Intangible Assets and Goodwill - Summary of expected amortization expense related to intangible assets (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2026 $ 98
2027 35
2028 27
2029 24
2030 21
Thereafter $ 36
v3.25.4
Intangible Assets and Goodwill - Summary of changes in goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill      
Goodwill $ 7,443 $ 7,363 $ 7,430
Impairments (2,122) (2,122) (2,122)
Net goodwill 5,321 5,241 5,308
Changes in carrying amount of goodwill by reportable segment:      
Goodwill, beginning of period 7,363 7,430  
Net goodwill, beginning of period 5,241 5,308  
Other Adjustments 80 (67)  
Goodwill, end of period 7,443 7,363  
Net goodwill, end of period 5,321 5,241  
Construction Industries      
Goodwill      
Goodwill 264 261 277
Impairments (22) (22) (22)
Net goodwill 242 239 255
Changes in carrying amount of goodwill by reportable segment:      
Goodwill, beginning of period 261 277  
Net goodwill, beginning of period 239 255  
Other Adjustments 3 (16)  
Goodwill, end of period 264 261  
Net goodwill, end of period 242 239  
Resource Industries      
Goodwill      
Goodwill 4,161 4,124 4,151
Impairments (1,175) (1,175) (1,175)
Net goodwill 2,986 2,949 2,976
Changes in carrying amount of goodwill by reportable segment:      
Goodwill, beginning of period 4,124 4,151  
Net goodwill, beginning of period 2,949 2,976  
Other Adjustments 37 (27)  
Goodwill, end of period 4,161 4,124  
Net goodwill, end of period 2,986 2,949  
Power & Energy      
Goodwill      
Goodwill 2,979 2,939 2,959
Impairments (925) (925) (925)
Net goodwill 2,054 2,014 2,034
Changes in carrying amount of goodwill by reportable segment:      
Goodwill, beginning of period 2,939 2,959  
Net goodwill, beginning of period 2,014 2,034  
Other Adjustments 40 (20)  
Goodwill, end of period 2,979 2,939  
Net goodwill, end of period 2,054 2,014  
Other Operating Segment      
Goodwill      
Goodwill 39 39 $ 43
Changes in carrying amount of goodwill by reportable segment:      
Goodwill, beginning of period 39 43  
Other Adjustments 0 (4)  
Goodwill, end of period $ 39 $ 39  
v3.25.4
Investments in debt and equity securities - Schedule of available-for-sale securities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Schedule of Debt and Equity Securities    
Cost Basis $ 3,535 $ 4,114
Unrealized Pretax Net Gains (Losses) 14 (72)
Fair Value 3,549 4,042
U.S. treasury bonds    
Schedule of Debt and Equity Securities    
Cost Basis 10 10
Unrealized Pretax Net Gains (Losses) 0 0
Fair Value 10 10
Other U.S. and non-U.S. government bonds    
Schedule of Debt and Equity Securities    
Cost Basis 72 71
Unrealized Pretax Net Gains (Losses) 2 (3)
Fair Value 74 68
Corporate bonds and other debt securities    
Schedule of Debt and Equity Securities    
Cost Basis 2,457 3,199
Unrealized Pretax Net Gains (Losses) 23 (29)
Fair Value 2,480 3,170
Asset-backed securities    
Schedule of Debt and Equity Securities    
Cost Basis 273 220
Unrealized Pretax Net Gains (Losses) 0 (1)
Fair Value 273 219
U.S. governmental agency    
Schedule of Debt and Equity Securities    
Cost Basis 580 476
Unrealized Pretax Net Gains (Losses) (8) (33)
Fair Value 572 443
Residential    
Schedule of Debt and Equity Securities    
Cost Basis 2 2
Unrealized Pretax Net Gains (Losses) (1) 0
Fair Value 1 2
Commercial    
Schedule of Debt and Equity Securities    
Cost Basis 141 136
Unrealized Pretax Net Gains (Losses) (2) (6)
Fair Value $ 139 $ 130
v3.25.4
Investments in debt and equity securities - Available-for-sale debt securities in an unrealized loss position (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Less than 12 months    
Fair Value $ 177 $ 875
Unrealized Losses 0 6
12 months or more    
Fair Value 763 1,290
Unrealized Losses 26 75
Total - Fair Value 940 2,165
Total - Unrealized losses 26 81
Other U.S. and non-U.S. government bonds    
Less than 12 months    
Fair Value 0 0
Unrealized Losses 0 0
12 months or more    
Fair Value 17 55
Unrealized Losses 0 4
Total - Fair Value 17 55
Total - Unrealized losses 0 4
Corporate bonds and other debt securities    
Less than 12 months    
Fair Value 130 729
Unrealized Losses 0 3
12 months or more    
Fair Value 306 812
Unrealized Losses 6 33
Total - Fair Value 436 1,541
Total - Unrealized losses 6 36
Asset-backed securities    
Less than 12 months    
Fair Value 38 7
Unrealized Losses 0 0
12 months or more    
Fair Value 43 37
Unrealized Losses 1 2
Total - Fair Value 81 44
Total - Unrealized losses 1 2
U.S. governmental agency    
Less than 12 months    
Fair Value 3 126
Unrealized Losses 0 3
12 months or more    
Fair Value 307 273
Unrealized Losses 15 30
Total - Fair Value 310 399
Total - Unrealized losses 15 33
Residential    
Less than 12 months    
Fair Value 0  
Unrealized Losses 0  
12 months or more    
Fair Value 1  
Unrealized Losses 1  
Total - Fair Value 1  
Total - Unrealized losses 1  
Commercial    
Less than 12 months    
Fair Value 6 13
Unrealized Losses 0 0
12 months or more    
Fair Value 89 113
Unrealized Losses 3 6
Total - Fair Value 95 126
Total - Unrealized losses $ 3 $ 6
v3.25.4
Investments in debt and equity securities - Cost basis and fair value of the available-for-sale debt securities by contractual maturity (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Cost Basis    
Due in one year or less $ 744  
Due after one year through five years 1,488  
Due after five years through ten years 378  
Due after ten years 202  
Cost Basis 3,535 $ 4,114
Fair Value    
Due in one year or less 748  
Due after one year through five years 1,504  
Due after five years through ten years 383  
Due after ten years 202  
Fair Value 3,549 4,042
U.S. governmental agency    
Cost Basis    
Cost Basis 580 476
Fair Value    
Fair Value 572 443
Residential    
Cost Basis    
Cost Basis 2 2
Fair Value    
Fair Value 1 2
Commercial    
Cost Basis    
Cost Basis 141 136
Fair Value    
Fair Value $ 139 $ 130
v3.25.4
Investments in debt and equity securities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]      
Proceeds from available-for-sale debt securities $ 2,166 $ 1,223 $ 940
Unrealized gain (loss) on equity securities held on report date $ 20 $ 25 $ (12)
v3.25.4
Postemployment benefit plans - Schedule of changes in projected benefit obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Change in benefit obligation:      
Actuarial loss (gain) $ (294) $ (154) $ (97)
Pension Plan | U.S. Pension Benefits      
Defined Benefit Plan Disclosure      
Accumulated benefit obligation, end of year 12,066 12,171  
Change in benefit obligation:      
Benefit obligation, beginning of year 12,171 13,137  
Service cost 0 0 0
Interest cost 612 625 656
Plan amendments 0 0  
Actuarial loss (gain) 276 (603)  
Foreign currency exchange rates 0 0  
Participant contributions 0 0  
Benefits paid - gross (993) (988)  
Less: federal subsidy on benefits paid 0 0  
Curtailments, settlements and termination benefits 0 0  
Benefit obligation, end of year 12,066 12,171 13,137
Change in plan assets:      
Fair value of plan assets, beginning of year 11,898 12,738  
Actual return on plan assets 1,158 96  
Foreign currency exchange rates 0 0  
Company contributions 50 52  
Participant contributions 0 0  
Benefits paid (993) (988)  
Settlements and termination benefits 0 0  
Fair value of plan assets, ending of year 12,113 11,898 12,738
Over (under) funded status 47 (273)  
Amounts recognized in Statement 3:      
Other assets (non-current asset) 670 354  
Accrued wages, salaries and employee benefits (current liability) (50) (50)  
Liability for postemployment benefits (non-current liability) (573) (577)  
Net (liability) asset recognized 47 (273)  
Amounts recognized in AOCI (pre-tax):      
Prior service cost (credit) $ 0 $ 0  
Weighted-average assumptions used to determine benefit obligation, end of year:      
Discount rate 5.30% 5.60%  
Rate of compensation increase 0.00% 0.00%  
Pension Plan | Non-U.S.  Pension Benefits      
Defined Benefit Plan Disclosure      
Accumulated benefit obligation, end of year $ 3,011 $ 2,880  
Change in benefit obligation:      
Benefit obligation, beginning of year 2,989 3,265  
Service cost 49 43 40
Interest cost 118 118 124
Plan amendments 6 0  
Actuarial loss (gain) (93) (31)  
Foreign currency exchange rates 291 (203)  
Participant contributions 5 5  
Benefits paid - gross (189) (193)  
Less: federal subsidy on benefits paid 0 0  
Curtailments, settlements and termination benefits (45) (15)  
Benefit obligation, end of year 3,131 2,989 3,265
Change in plan assets:      
Fair value of plan assets, beginning of year 3,203 3,467  
Actual return on plan assets 103 74  
Foreign currency exchange rates 307 (194)  
Company contributions 70 59  
Participant contributions 5 5  
Benefits paid (189) (193)  
Settlements and termination benefits (45) (15)  
Fair value of plan assets, ending of year 3,454 3,203 3,467
Over (under) funded status 323 214  
Amounts recognized in Statement 3:      
Other assets (non-current asset) 681 541  
Accrued wages, salaries and employee benefits (current liability) (22) (21)  
Liability for postemployment benefits (non-current liability) (336) (306)  
Net (liability) asset recognized 323 214  
Amounts recognized in AOCI (pre-tax):      
Prior service cost (credit) $ 27 $ 21  
Weighted-average assumptions used to determine benefit obligation, end of year:      
Discount rate 4.30% 4.10%  
Rate of compensation increase 2.20% 2.20%  
Other Postretirement  Benefits      
Change in benefit obligation:      
Benefit obligation, beginning of year $ 2,469 $ 2,741  
Service cost 63 67 67
Interest cost 125 131 144
Plan amendments 0 0  
Actuarial loss (gain) (96) (202)  
Foreign currency exchange rates 21 (33)  
Participant contributions 41 45  
Benefits paid - gross (287) (286)  
Less: federal subsidy on benefits paid 6 6  
Curtailments, settlements and termination benefits 0 0  
Benefit obligation, end of year 2,342 2,469 2,741
Change in plan assets:      
Fair value of plan assets, beginning of year 88 144  
Actual return on plan assets 25 25  
Foreign currency exchange rates 0 0  
Company contributions 261 160  
Participant contributions 41 45  
Benefits paid (287) (286)  
Settlements and termination benefits 0 0  
Fair value of plan assets, ending of year 128 88 $ 144
Over (under) funded status (2,214) (2,381)  
Amounts recognized in Statement 3:      
Other assets (non-current asset) 0 0  
Accrued wages, salaries and employee benefits (current liability) (146) (204)  
Liability for postemployment benefits (non-current liability) (2,068) (2,177)  
Net (liability) asset recognized (2,214) (2,381)  
Amounts recognized in AOCI (pre-tax):      
Prior service cost (credit) $ 0 $ (5)  
Weighted-average assumptions used to determine benefit obligation, end of year:      
Discount rate 5.30% 5.60%  
Rate of compensation increase 4.00% 4.00%  
v3.25.4
Postemployment benefit plans (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure    
Liability for postemployment benefits $ 3,838 $ 3,757
ESOP, number of allocated shares 9.6 10.4
Insurance contracts | Level 3 | Non-U.S.  Pension Benefits    
Defined Benefit Plan Disclosure    
Settlements $ 58 $ 59
Unrealized gains (loss) 34 (15)
Other Postretirement  Benefits    
Defined Benefit Plan Disclosure    
Liability for postemployment benefits $ 861 $ 697
Assumed increase in health care trend rate over the current period to calculate benefit expenses (as a percent)   6.00%
Assumed increase in health care trend rate for the next year to calculate benefit expenses (as a percent) 6.70%  
Ultimate health care cost trend rate (as a percent) 4.70%  
Year that heath care trend rate is assumed to reach ultimate trend rate (year) 2037  
Other Postretirement  Benefits | Debt Security    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 60.00%  
Other Postretirement  Benefits | Equity Securities    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 40.00%  
Pension Plan | Debt Security | U.S. Pension Benefits    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 87.00%  
Pension Plan | Debt Security | Non-U.S.  Pension Benefits    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 59.00%  
Pension Plan | Equity Securities | U.S. Pension Benefits    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 13.00%  
Pension Plan | Equity Securities | Non-U.S.  Pension Benefits    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 11.00%  
Pension Plan | Insurance contracts | Non-U.S.  Pension Benefits    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 18.00%  
Pension Plan | Real estate | Non-U.S.  Pension Benefits    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 7.00%  
Pension Plan | Other plan assets | Non-U.S.  Pension Benefits    
Defined Benefit Plan Disclosure    
Target allocation of plan assets (as a percent) 5.00%  
U.S. benefits    
Defined Benefit Plan Disclosure    
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans 100.00%  
Employee compensation percentage contributed to defined contribution plan eligible for employer matching contributions 6.00%  
New annual employer contribution, percentage of compensation, low end of range 3.00%  
New annual employer contribution, percentage of compensation, high end of range 5.00%  
v3.25.4
Postemployment benefit plans - Schedule of benefit obligation in excess of plan assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
U.S. Pension Benefits    
Pension plans with projected benefit obligation in excess of plan assets:    
Projected benefit obligation $ 623 $ 627
Fair value of plan assets 0 0
Pension plans with accumulated benefit obligation in excess of plan assets:    
Accumulated benefit obligation 623 627
Fair value of plan assets 0 0
Non-U.S.  Pension Benefits    
Pension plans with projected benefit obligation in excess of plan assets:    
Projected benefit obligation 412 370
Fair value of plan assets 54 43
Pension plans with accumulated benefit obligation in excess of plan assets:    
Accumulated benefit obligation 300 279
Fair value of plan assets $ 19 $ 7
v3.25.4
Postemployment benefit plans - Components of net periodic benefit cost, amounts recognized in OCI, weighted average assumptions used to determine net periodic benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Components of net periodic benefit cost:      
Net periodic benefit cost (benefit) $ 185 $ 67 $ (65)
Pension Plan | U.S. Pension Benefits      
Components of net periodic benefit cost:      
Service cost 0 0 0
Interest cost 612 625 656
Expected return on plan assets (720) (699) (689)
Curtailments, settlements and termination benefits 0 0 0
Amortization of prior service cost (credit) 0 0 0
Actuarial loss (gain) (162) 0 (138)
Net periodic benefit cost (benefit) (270) (74) (171)
Amounts recognized in other comprehensive income (pre-tax):      
Current year prior service cost (credit) 0 0 0
Amortization of prior service (cost) credit 0 0 0
Total recognized in other comprehensive income 0 0 0
Total recognized in net periodic cost and other comprehensive income $ (270) $ (74) $ (171)
Weighted-average assumptions used to determine net periodic benefit cost:      
Discount rate used to measure service cost 0.00% 0.00% 0.00%
Discount rate used to measure interest cost 5.30% 5.00% 5.20%
Expected rate of return on plan assets 6.30% 5.70% 5.80%
Rate of compensation increase 0.00% 0.00% 0.00%
Pension Plan | Non-U.S.  Pension Benefits      
Components of net periodic benefit cost:      
Service cost $ 49 $ 43 $ 40
Interest cost 118 118 124
Expected return on plan assets (171) (165) (163)
Curtailments, settlements and termination benefits 0 0 1
Amortization of prior service cost (credit) 1 0 0
Actuarial loss (gain) (26) 59 172
Net periodic benefit cost (benefit) (29) 55 174
Amounts recognized in other comprehensive income (pre-tax):      
Current year prior service cost (credit) 7 0 1
Amortization of prior service (cost) credit (1) 0 0
Total recognized in other comprehensive income 6 0 1
Total recognized in net periodic cost and other comprehensive income $ (23) $ 55 $ 175
Weighted-average assumptions used to determine net periodic benefit cost:      
Discount rate used to measure service cost 3.20% 3.60% 3.80%
Discount rate used to measure interest cost 3.90% 3.90% 4.20%
Expected rate of return on plan assets 5.20% 5.10% 5.20%
Rate of compensation increase 2.20% 2.30% 2.30%
Other Postretirement  Benefits      
Components of net periodic benefit cost:      
Service cost $ 63 $ 67 $ 67
Interest cost 125 131 144
Expected return on plan assets (9) (7) (11)
Curtailments, settlements and termination benefits 0 0 0
Amortization of prior service cost (credit) (5) (14) (12)
Actuarial loss (gain) (106) (213) (131)
Net periodic benefit cost (benefit) 68 (36) 57
Amounts recognized in other comprehensive income (pre-tax):      
Current year prior service cost (credit) 0 0 (2)
Amortization of prior service (cost) credit 5 14 12
Total recognized in other comprehensive income 5 14 10
Total recognized in net periodic cost and other comprehensive income $ 73 $ (22) $ 67
Weighted-average assumptions used to determine net periodic benefit cost:      
Discount rate used to measure service cost 5.70% 5.10% 5.40%
Discount rate used to measure interest cost 5.30% 5.00% 5.30%
Expected rate of return on plan assets 6.10% 7.40% 7.40%
Rate of compensation increase 4.00% 4.00% 4.00%
v3.25.4
Postemployment benefit plans - Schedule of expected contributions, expected benefit payments and gross prescription drug subsidy receipts (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Expected Medicare Part D subsidy:  
2026 $ 6
2027 5
2028 5
2029 5
2030 4
2031-2035 17
Total 42
Pension Plan | U.S. Pension Benefits  
Expected employer contributions:  
2026 50
Expected benefit payments:  
2026 1,000
2027 985
2028 975
2029 965
2030 950
2031-2035 4,510
Total 9,385
Pension Plan | Non-U.S.  Pension Benefits  
Expected employer contributions:  
2026 64
Expected benefit payments:  
2026 215
2027 200
2028 210
2029 215
2030 220
2031-2035 1,120
Total 2,180
Other Postretirement  Benefits  
Expected employer contributions:  
2026 246
Expected benefit payments:  
2026 225
2027 225
2028 220
2029 215
2030 210
2031-2035 1,010
Total $ 2,105
v3.25.4
Postemployment benefit plans - Fair value of pension and other postretirement benefit plan assets, by category (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pension Plan | U.S. Pension Benefits      
Defined Benefit Plan Disclosure      
Plan assets $ 12,113 $ 11,898 $ 12,738
Pension Plan | U.S. Pension Benefits | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 1,122 1,177  
Pension Plan | U.S. Pension Benefits | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 1,012 956  
Pension Plan | U.S. Pension Benefits | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 5,717 5,465  
Pension Plan | U.S. Pension Benefits | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 958 972  
Pension Plan | U.S. Pension Benefits | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 2,619 2,656  
Pension Plan | U.S. Pension Benefits | U.S. governmental agency      
Defined Benefit Plan Disclosure      
Plan assets 184 180  
Pension Plan | U.S. Pension Benefits | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 151 132  
Pension Plan | U.S. Pension Benefits | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 350 360  
Pension Plan | U.S. Pension Benefits | Level 1      
Defined Benefit Plan Disclosure      
Plan assets 2,115 2,081  
Pension Plan | U.S. Pension Benefits | Level 1 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 1,049 1,087  
Pension Plan | U.S. Pension Benefits | Level 1 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 998 946  
Pension Plan | U.S. Pension Benefits | Level 1 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 1 | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 1 | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 1 | U.S. governmental agency      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 1 | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 1 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 68 48  
Pension Plan | U.S. Pension Benefits | Level 2      
Defined Benefit Plan Disclosure      
Plan assets 9,521 9,348  
Pension Plan | U.S. Pension Benefits | Level 2 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 1 0  
Pension Plan | U.S. Pension Benefits | Level 2 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 2 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 5,598 5,396  
Pension Plan | U.S. Pension Benefits | Level 2 | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 958 972  
Pension Plan | U.S. Pension Benefits | Level 2 | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 2,619 2,656  
Pension Plan | U.S. Pension Benefits | Level 2 | U.S. governmental agency      
Defined Benefit Plan Disclosure      
Plan assets 184 180  
Pension Plan | U.S. Pension Benefits | Level 2 | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 151 132  
Pension Plan | U.S. Pension Benefits | Level 2 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 10 12  
Pension Plan | U.S. Pension Benefits | Level 3      
Defined Benefit Plan Disclosure      
Plan assets 64 71  
Pension Plan | U.S. Pension Benefits | Level 3 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 22 28  
Pension Plan | U.S. Pension Benefits | Level 3 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 14 10  
Pension Plan | U.S. Pension Benefits | Level 3 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 28 33  
Pension Plan | U.S. Pension Benefits | Level 3 | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 3 | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 3 | U.S. governmental agency      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 3 | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Level 3 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Measured at NAV      
Defined Benefit Plan Disclosure      
Plan assets 413 398  
Pension Plan | U.S. Pension Benefits | Measured at NAV | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 50 62  
Pension Plan | U.S. Pension Benefits | Measured at NAV | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Measured at NAV | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 91 36  
Pension Plan | U.S. Pension Benefits | Measured at NAV | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Measured at NAV | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Measured at NAV | U.S. governmental agency      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Measured at NAV | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | U.S. Pension Benefits | Measured at NAV | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 272 300  
Pension Plan | Non-U.S.  Pension Benefits      
Defined Benefit Plan Disclosure      
Plan assets 3,454 3,203 3,467
Pension Plan | Non-U.S.  Pension Benefits | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 78 74  
Pension Plan | Non-U.S.  Pension Benefits | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 262 243  
Pension Plan | Non-U.S.  Pension Benefits | Global equities      
Defined Benefit Plan Disclosure      
Plan assets 51 49  
Pension Plan | Non-U.S.  Pension Benefits | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 89 87  
Pension Plan | Non-U.S.  Pension Benefits | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 917 468  
Pension Plan | Non-U.S.  Pension Benefits | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 73 61  
Pension Plan | Non-U.S.  Pension Benefits | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 606 916  
Pension Plan | Non-U.S.  Pension Benefits | Global fixed income      
Defined Benefit Plan Disclosure      
Plan assets 326 297  
Pension Plan | Non-U.S.  Pension Benefits | Real estate      
Defined Benefit Plan Disclosure      
Plan assets 260 216  
Pension Plan | Non-U.S.  Pension Benefits | Insurance contracts      
Defined Benefit Plan Disclosure      
Plan assets 577 601  
Pension Plan | Non-U.S.  Pension Benefits | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 215 191  
Pension Plan | Non-U.S.  Pension Benefits | Level 1      
Defined Benefit Plan Disclosure      
Plan assets 375 338  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 78 74  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 232 197  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Global equities      
Defined Benefit Plan Disclosure      
Plan assets 41 32  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Global fixed income      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Real estate      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Insurance contracts      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 1 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 24 35  
Pension Plan | Non-U.S.  Pension Benefits | Level 2      
Defined Benefit Plan Disclosure      
Plan assets 2,266 2,025  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 27 26  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Global equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 89 87  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 917 468  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 73 61  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 606 916  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Global fixed income      
Defined Benefit Plan Disclosure      
Plan assets 113 104  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Real estate      
Defined Benefit Plan Disclosure      
Plan assets 250 207  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Insurance contracts      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 2 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 191 156  
Pension Plan | Non-U.S.  Pension Benefits | Level 3      
Defined Benefit Plan Disclosure      
Plan assets 577 601  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Global equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Global fixed income      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Real estate      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Insurance contracts      
Defined Benefit Plan Disclosure      
Plan assets 577 601  
Pension Plan | Non-U.S.  Pension Benefits | Level 3 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV      
Defined Benefit Plan Disclosure      
Plan assets 236 239  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 3 20  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Global equities      
Defined Benefit Plan Disclosure      
Plan assets 10 17  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Non-U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Non-U.S. government bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Global fixed income      
Defined Benefit Plan Disclosure      
Plan assets 213 193  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Real estate      
Defined Benefit Plan Disclosure      
Plan assets 10 9  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Insurance contracts      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Pension Plan | Non-U.S.  Pension Benefits | Measured at NAV | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits      
Defined Benefit Plan Disclosure      
Plan assets 128 88 $ 144
Other Postretirement  Benefits | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 49 43  
Other Postretirement  Benefits | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 26 20  
Other Postretirement  Benefits | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 21 20  
Other Postretirement  Benefits | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 32 5  
Other Postretirement  Benefits | Level 1      
Defined Benefit Plan Disclosure      
Plan assets 69 59  
Other Postretirement  Benefits | Level 1 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 46 41  
Other Postretirement  Benefits | Level 1 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 23 18  
Other Postretirement  Benefits | Level 1 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 1 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 2      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 2 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 2 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 2 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 2 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 3      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 3 | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 3 | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 3 | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Level 3 | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets 0 0  
Other Postretirement  Benefits | Measured at NAV      
Defined Benefit Plan Disclosure      
Plan assets 59 29  
Other Postretirement  Benefits | Measured at NAV | U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 3 2  
Other Postretirement  Benefits | Measured at NAV | Non-U.S. equities      
Defined Benefit Plan Disclosure      
Plan assets 3 2  
Other Postretirement  Benefits | Measured at NAV | U.S. corporate bonds      
Defined Benefit Plan Disclosure      
Plan assets 21 20  
Other Postretirement  Benefits | Measured at NAV | Cash, short-term instruments and other      
Defined Benefit Plan Disclosure      
Plan assets $ 32 $ 5  
v3.25.4
Postemployment benefit plans - Company costs related to U.S. and non-U.S. defined contribution plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure      
Costs related to defined contribution plans $ 835 $ 741 $ 681
U.S. plans      
Defined Benefit Plan Disclosure      
Costs related to defined contribution plans 696 610 567
Non-U.S. plans      
Defined Benefit Plan Disclosure      
Costs related to defined contribution plans $ 139 $ 131 $ 114
v3.25.4
Short-term borrowings (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Short-term borrowings:    
Short-term borrowings $ 5,514 $ 4,393
Notes payable to banks    
Short-term borrowings:    
Weighted-average interest rates on short-term borrowings (as a percent) 10.10% 10.80%
Commercial paper    
Short-term borrowings:    
Weighted-average interest rates on short-term borrowings (as a percent) 3.80% 4.50%
Demand notes    
Short-term borrowings:    
Weighted-average interest rates on short-term borrowings (as a percent) 0.00% 4.20%
Machinery, Power & Energy    
Short-term borrowings:    
Short-term borrowings $ 0 $ 0
Machinery, Power & Energy | Notes payable to banks    
Short-term borrowings:    
Short-term borrowings 0 0
Financial Products    
Short-term borrowings:    
Short-term borrowings 5,514 4,393
Financial Products | Notes payable to banks    
Short-term borrowings:    
Short-term borrowings 106 165
Financial Products | Commercial paper    
Short-term borrowings:    
Short-term borrowings 5,408 3,946
Financial Products | Demand notes    
Short-term borrowings:    
Short-term borrowings $ 0 $ 282
v3.25.4
Long-term debt - Long-term debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Long-term Debt    
Total long-term debt due after one year $ 30,696 $ 27,351
Mark to market adjustments, hedged liability, fair value hedge (34) (186)
Machinery, Power & Energy    
Long-term Debt    
Finance lease obligations and other 6 (103)
Long-term debt due after one year $ 10,678 8,564
Machinery, Power & Energy | Notes-$759 million of 5.200% due 2041    
Long-term Debt    
Effective Yield to Maturity (as a percent) 5.27%  
Notes $ 753 753
Debt instrument $ 759  
Debt instrument, interest rate (as a percent) 5.20%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$193 million of 6.625% due 2028    
Long-term Debt    
Effective Yield to Maturity (as a percent) 6.68%  
Debentures $ 193 193
Debt instrument $ 193  
Debt instrument, interest rate (as a percent) 6.625%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$500 million of 2.600% due 2029    
Long-term Debt    
Effective Yield to Maturity (as a percent) 2.67%  
Debentures $ 499 498
Debt instrument $ 500  
Debt instrument, interest rate (as a percent) 2.60%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures - $800 million of 2.600% due 2030    
Long-term Debt    
Effective Yield to Maturity (as a percent) 2.72%  
Debentures $ 796 796
Debt instrument $ 800  
Debt instrument, interest rate (as a percent) 2.60%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures - $500 million of 1.900% due 2031    
Long-term Debt    
Effective Yield to Maturity (as a percent) 2.04%  
Debentures $ 497 496
Debt instrument $ 500  
Debt instrument, interest rate (as a percent) 1.90%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$242 million of 7.300% due 2031    
Long-term Debt    
Effective Yield to Maturity (as a percent) 7.38%  
Debentures $ 241 241
Debt instrument $ 242  
Debt instrument, interest rate (as a percent) 7.30%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Unsecured Debentures Due in 2035 at 5.200%    
Long-term Debt    
Effective Yield to Maturity (as a percent) 5.30%  
Debentures $ 1,688 0
Debt instrument $ 1,700  
Debt instrument, interest rate (as a percent) 5.20%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$307 million of 5.300% due 2035    
Long-term Debt    
Effective Yield to Maturity (as a percent) 8.64%  
Debentures $ 241 237
Debt instrument $ 307  
Debt instrument, interest rate (as a percent) 5.30%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$460 million of 6.050% due 2036    
Long-term Debt    
Effective Yield to Maturity (as a percent) 6.12%  
Debentures $ 457 457
Debt instrument $ 460  
Debt instrument, interest rate (as a percent) 6.05%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$65 million of 8.250% due 2038    
Long-term Debt    
Effective Yield to Maturity (as a percent) 8.38%  
Debentures $ 64 64
Debt instrument $ 65  
Debt instrument, interest rate (as a percent) 8.25%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$160 million of 6.950% due 2042    
Long-term Debt    
Effective Yield to Maturity (as a percent) 7.02%  
Debentures $ 158 158
Debt instrument $ 160  
Debt instrument, interest rate (as a percent) 6.95%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$1,722 million of 3.803% due 2042    
Long-term Debt    
Effective Yield to Maturity (as a percent) 6.39%  
Debentures $ 1,395 1,375
Debt instrument $ 1,722  
Debt instrument, interest rate (as a percent) 3.803%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures—$500 million of 4.300% due 2044    
Long-term Debt    
Effective Yield to Maturity (as a percent) 4.39%  
Debentures $ 494 494
Debt instrument $ 500  
Debt instrument, interest rate (as a percent) 4.30%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures - $1000 million of 3.250% due 2049    
Long-term Debt    
Effective Yield to Maturity (as a percent) 3.34%  
Debentures $ 985 984
Debt instrument $ 1,000  
Debt instrument, interest rate (as a percent) 3.25%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures - $1200 million of 3.250% due 2050    
Long-term Debt    
Effective Yield to Maturity (as a percent) 3.32%  
Debentures $ 1,187 1,186
Debt instrument $ 1,200  
Debt instrument, interest rate (as a percent) 3.25%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Unsecured Debentures Due in 2055 at 5.500%    
Long-term Debt    
Effective Yield to Maturity (as a percent) 5.74%  
Debentures $ 289 0
Debt instrument $ 300  
Debt instrument, interest rate (as a percent) 5.50%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures—$500 million of 4.750% due 2064    
Long-term Debt    
Effective Yield to Maturity (as a percent) 4.81%  
Debentures $ 494 494
Debt instrument $ 500  
Debt instrument, interest rate (as a percent) 4.75%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Machinery, Power & Energy | Debentures-$246 million of 7.375% due 2097    
Long-term Debt    
Effective Yield to Maturity (as a percent) 7.51%  
Debentures $ 241 241
Debt instrument $ 246  
Debt instrument, interest rate (as a percent) 7.375%  
Percentage of the redemption price to the principal amount of debentures to be redeemed 100.00%  
Financial Products Segment    
Long-term Debt    
Long-term debt due after one year $ 20,018 18,787
Medium-term notes 19,675 18,568
Other 343 219
Financial Products    
Long-term Debt    
Long-term debt due after one year 20,018 18,787
Financial Products | Interest rate contracts    
Long-term Debt    
Mark to market adjustments, hedged liability, fair value hedge $ (88) $ (170)
v3.25.4
Long-term debt (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
May 12, 2025
Long-term Debt        
Face amount, medium term note reclassified $ 1,750      
Interest paid on short-term and long-term borrowings 1,842 $ 1,738 $ 1,435  
Medium-Term Note        
Long-term Debt        
Debt instrument 1,750      
Medium-Term Note, 2030        
Long-term Debt        
Debt instrument 500      
Medium-Term Note, 2027        
Long-term Debt        
Debt instrument 1,250      
Medium Term Note mature in 2024        
Long-term Debt        
Medium-term notes excluded from current maturity of long-term debt $ 1,750      
Senior Notes Due 2035 | Senior Notes        
Long-term Debt        
Debt instrument       $ 1,700
Debt instrument, interest rate (as a percent)       5.20%
Senior Notes Due 2055 | Senior Notes        
Long-term Debt        
Debt instrument       $ 300
Debt instrument, interest rate (as a percent)       5.50%
Financial Products        
Long-term Debt        
Medium-term notes, interest rate 3.80%      
Medium-term notes, remaining maturity 5 years      
v3.25.4
Long-term debt - Aggregate amounts of maturities of long-term debt (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Long-term Debt  
2026 $ 7,120
2027 8,920
2028 7,747
2029 3,112
2030 1,261
Machinery, Power & Energy  
Long-term Debt  
2026 35
2027 30
2028 219
2029 522
2030 805
Financial Products  
Long-term Debt  
2026 7,085
2027 8,890
2028 7,528
2029 2,590
2030 $ 456
v3.25.4
Credit commitments - Summary of Credit Commitments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Credit commitments  
Credit lines available $ 15,837
Less: Commercial paper outstanding (5,408)
Less: Utilized credit (771)
Available credit 9,658
Machinery, Power & Energy  
Credit commitments  
Credit lines available 3,771
Less: Commercial paper outstanding 0
Less: Utilized credit 0
Available credit 3,771
Financial Products  
Credit commitments  
Credit lines available 12,066
Less: Commercial paper outstanding (5,408)
Less: Utilized credit (771)
Available credit 5,887
Global credit facilities  
Credit commitments  
Credit lines available 11,500
Less: Utilized credit 0
Global credit facilities | Machinery, Power & Energy  
Credit commitments  
Credit lines available 2,875
Global credit facilities | Financial Products  
Credit commitments  
Credit lines available 8,625
Other external  
Credit commitments  
Credit lines available 4,337
Other external | Machinery, Power & Energy  
Credit commitments  
Credit lines available 896
Other external | Financial Products  
Credit commitments  
Credit lines available $ 3,441
v3.25.4
Credit commitments (Details)
$ in Millions
 1 Months Ended
Aug. 31, 2025
USD ($)
Dec. 31, 2025
USD ($)
facilities
Credit commitments    
Credit lines available   $ 15,837
Long-term line of credit outstanding   771
Machinery, Power & Energy    
Credit commitments    
Credit lines available   3,771
Long-term line of credit outstanding   $ 0
Global credit facilities    
Credit commitments    
Number of global credit facilities | facilities   3
Credit lines available   $ 11,500
Long-term line of credit outstanding   0
Global credit facilities | Machinery, Power & Energy    
Credit commitments    
Credit lines available   2,875
Other external    
Credit commitments    
Credit lines available   4,337
Other external | Machinery, Power & Energy    
Credit commitments    
Credit lines available   $ 896
364-day credit facility | Global credit facilities    
Credit commitments    
Credit lines available $ 3,500  
Duration of credit facility (in years or days) 364 days  
364-day credit facility | Global credit facilities | Machinery, Power & Energy    
Credit commitments    
Credit lines available $ 875  
Three-year facility | Global credit facilities    
Credit commitments    
Credit lines available $ 3,000  
Duration of credit facility (in years or days) 3 years  
Three-year facility | Global credit facilities | Machinery, Power & Energy    
Credit commitments    
Credit lines available $ 750  
Five-year facility | Global credit facilities    
Credit commitments    
Credit lines available $ 5,000  
Duration of credit facility (in years or days) 5 years  
Five-year facility | Global credit facilities | Machinery, Power & Energy    
Credit commitments    
Credit lines available $ 1,250  
v3.25.4
Profit per share - Computations of Profit Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Profit for the period (A) (in millions of dollars) [1] $ 8,884 $ 10,792 $ 10,335
Determination of shares (in millions):      
Weighted-average number of common shares outstanding (B) (in shares) 470.0 486.7 510.6
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares) 2.3 2.7 3.0
Average common shares outstanding for fully diluted computation (C) (in shares) [2] 472.3 489.4 513.6
Assuming no dilution (A/B) (in dollars per share) $ 18.90 $ 22.17 $ 20.24
Assuming full dilution (A/C) (in dollars per share) [2] $ 18.81 $ 22.05 $ 20.12
Shares outstanding as of December 31 (in shares) 465.3 477.9 499.4
[1] Profit attributable to common shareholders.
[2] Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
v3.25.4
Profit per share (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
May 31, 2022
Stock repurchase              
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)     100,000 300,000 800,000    
Common shares repurchased (in shares)     14,078,415 23,417,282 19,466,020    
Common shares repurchased     $ 5,190 [1] $ 7,997 $ 4,675    
Payments for repurchase of common stock     5,190 $ 7,697 $ 4,975    
2022 Authorization Program              
Stock repurchase              
Authorized amount             $ 15,000
Remaining authorized repurchase $ 14,900   $ 14,900        
2024 Authorization Program              
Stock repurchase              
Authorized amount           $ 20,000  
ASR Agreements              
Stock repurchase              
Common shares repurchased (in shares) 2,400,000 5,700,000          
Common shares repurchased   $ 2,100          
Payments for repurchase of common stock   $ 3,000          
[1] See Note 16 regarding shares repurchased.
v3.25.4
Accumulated other comprehensive income (loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 19,494 $ 19,503 $ 15,891
Total other comprehensive income (loss), net of tax 699 (651) 637
Ending balance 21,318 19,494 19,503
Accumulated other comprehensive income (loss)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (2,471) (1,820) (2,457)
Ending balance (1,772) (2,471) (1,820)
Foreign currency translation      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (2,310) (1,782) (2,328)
Gains (losses) 559 (535) 32
Less: Tax provision /(benefit) 2 21 (21)
Net gains (losses) on foreign currency translation 557 (556) 53
(Gains) losses reclassified to earnings 0 28 493
Less: Tax provision /(benefit) 0 0 0
Net (gains) losses reclassified to earnings 0 28 493
Total other comprehensive income (loss), net of tax 557 (528) 546
Ending balance (1,753) (2,310) (1,782)
Pension and other postretirement benefits      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (61) (49) (39)
Gains (losses) (7) 0 1
Less: Tax provision /(benefit) (2) 0 0
Net gains (losses) on foreign currency translation (5) 0 1
(Gains) losses reclassified to earnings (4) (14) (12)
Less: Tax provision /(benefit) 0 (2) (1)
Net (gains) losses reclassified to earnings (4) (12) (11)
Total other comprehensive income (loss), net of tax (9) (12) (10)
Ending balance (70) (61) (49)
Derivative financial instruments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (46) 67 28
Gains (losses) 163 64 48
Less: Tax provision /(benefit) 38 27 11
Net gains (losses) on foreign currency translation 125 37 37
(Gains) losses reclassified to earnings (53) (207) 3
Less: Tax provision /(benefit) (13) (57) 1
Net (gains) losses reclassified to earnings (40) (150) 2
Total other comprehensive income (loss), net of tax 85 (113) 39
Ending balance 39 (46) 67
Available-for-sale securities      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (54) (56) (118)
Gains (losses) 78 (2) 72
Less: Tax provision /(benefit) 18 0 11
Net gains (losses) on foreign currency translation 60 (2) 61
(Gains) losses reclassified to earnings 8 4 1
Less: Tax provision /(benefit) 2 0 0
Net (gains) losses reclassified to earnings 6 4 1
Total other comprehensive income (loss), net of tax 66 2 62
Ending balance $ 12 $ (54) $ (56)
v3.25.4
Fair value disclosures - Assets and liabilities measured on a recurring basis at fair value (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets and liabilities measured on a recurring basis at fair value    
Debt securities $ 3,549 $ 4,042
Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 3,549 4,042
Equity securities 522 469
Total assets 4,283 4,628
Total liabilities 41 226
Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 204 117
Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities (40) (191)
Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 8 (2)
Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities (1) (33)
U.S. treasury bonds    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 10 10
U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 10 10
Other U.S. and non-U.S. government bonds    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 74 68
Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 74 68
Corporate bonds and other debt securities    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 2,480 3,170
Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 2,480 3,170
Asset-backed securities    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 273 219
Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 273 219
U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 572 443
Residential    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 1 2
Residential | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 1 2
Commercial    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 139 130
Commercial | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 139 130
Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 283 261
Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 65 41
REIT | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 174 167
Level 1 | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 10 10
Equity securities 348 302
Total assets 358 312
Total liabilities 0 0
Level 1 | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 1 | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 1 | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 1 | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 1 | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 10 10
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 1 | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 1 | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 1 | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 1 | Residential | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 1 | Commercial | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 1 | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 283 261
Level 1 | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 65 41
Level 1 | REIT | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0 0
Level 2 | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 3,539 4,032
Equity securities 0 0
Total assets 3,751 4,149
Total liabilities 41 226
Level 2 | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 204 117
Level 2 | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities (40) (191)
Level 2 | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 8 (2)
Level 2 | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities (1) (33)
Level 2 | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 74 68
Level 2 | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 2,480 3,170
Level 2 | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 273 219
Level 2 | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 572 443
Level 2 | Residential | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 1 2
Level 2 | Commercial | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 139 130
Level 2 | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0 0
Level 2 | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0 0
Level 2 | REIT | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0 0
Level 3 | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Equity securities 0 0
Total assets 0 0
Total liabilities 0 0
Level 3 | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 3 | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 3 | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 3 | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 3 | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 3 | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 3 | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 3 | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 3 | Residential | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 3 | Commercial | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Level 3 | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0 0
Level 3 | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0 0
Level 3 | REIT | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0 0
Measured at NAV | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Equity securities 174 167
Total assets 174 167
Total liabilities 0 0
Measured at NAV | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Measured at NAV | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Measured at NAV | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Measured at NAV | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Measured at NAV | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Measured at NAV | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Residential | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Commercial | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0
Measured at NAV | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities 0
Measured at NAV | REIT | Recurring basis    
Assets and liabilities measured on a recurring basis at fair value    
Equity securities $ 174 $ 167
v3.25.4
Fair value disclosures (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Level 3 | Financial Products | Nonrecurring basis    
Assets measured on a nonrecurring basis at fair value    
Loans Carried at Fair Value $ 63 $ 59
v3.25.4
Fair value disclosures - Fair values of financial instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Carrying Amount    
Assets    
Finance receivables-net (excluding finance leases) $ 17,922 $ 16,180
Wholesale inventory receivables-net (excluding finance leases) 1,931 1,568
Carrying Amount | Machinery, Power & Energy    
Liabilities    
Long-term debt (including amounts due within one year) 10,713 8,610
Carrying Amount | Financial Products    
Liabilities    
Long-term debt (including amounts due within one year) 27,103 25,406
Carrying amount of assets excluded from measurement at fair value    
Liabilities    
Excluded items: Finance leases and failed sale leasebacks, Carrying Value 7,189 6,769
Level 3 | Fair Value    
Assets    
Finance receivables-net (excluding finance leases) 17,648 15,788
Wholesale inventory receivables-net (excluding finance leases) 1,871 1,527
Level 2 | Fair Value | Machinery, Power & Energy    
Liabilities    
Long-term debt (including amounts due within one year) 10,363 7,980
Level 2 | Fair Value | Financial Products    
Liabilities    
Long-term debt (including amounts due within one year) $ 27,204 $ 25,304
v3.25.4
Supplier Finance Programs - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Supplier Finance Program [Line Items]    
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] Accounts payable Accounts payable
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] Accounts payable Accounts payable
Supplier finance program, accounts payable $ 936 $ 830
Minimum    
Supplier Finance Program [Line Items]    
Supplier finance program, payment period 60 days  
Maximum    
Supplier Finance Program [Line Items]    
Supplier finance program, payment period 90 days  
v3.25.4
Supplier Finance Programs - Schedule of Supplier Finance Programs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Supplier Finance Program, Obligation [Roll Forward]    
Confirmed obligations outstanding, beginning of period $ 830 $ 803
Invoices confirmed during the period 5,669 5,140
Confirmed invoices paid during the period (5,563) (5,113)
Confirmed obligations outstanding, end of period $ 936 $ 830
v3.25.4
Leases - Components of lease cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lease, Cost      
Operating lease cost $ 192 $ 185 $ 189
Short-term lease cost $ 67 $ 65 $ 62
v3.25.4
Leases - Schedule of supplemental balance sheet information related to leases (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Other assets $ 708 $ 592
Other current liabilities 158 143
Other liabilities $ 570 $ 459
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Weighted average remaining lease term, operating leases 7 years 7 years
Weighted average discount rates, operating leases 4.00% 3.00%
v3.25.4
Leases - Maturity of lease liabilities (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity  
2026 $ 183
2027 149
2028 115
2029 98
2030 74
Thereafter 223
Total lease payments 842
Less: Imputed interest (114)
Total $ 728
v3.25.4
Leases- Supplemental cash flow information related to leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Supplemental cash flow info related to leases      
Cash paid for amounts included in the measurement of lease liabilities, operating cash flows from operating leases $ 185 $ 179 $ 180
Right-of-use assets obtained in exchange for lease obligations, operating leases $ 259 $ 187 $ 148
v3.25.4
Leases - Equipment leased to others (Details) - Machinery , equipment, other, and equipment leased to others - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Equipment leased to others    
Equipment leased to others - at original cost $ 6,004 $ 5,701
Less: Accumulated depreciation (1,999) (1,927)
Equipment leased to others - net $ 4,005 $ 3,774
v3.25.4
Leases - Operating lease payment maturity (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Operating Leases payment maturity  
2026 $ 896
2027 598
2028 397
2029 200
2030 104
Thereafter 80
Total $ 2,275
v3.25.4
Leases - Revenues from finance and operating leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Finance lease revenue $ 473 $ 440 $ 420
Operating lease revenue 1,216 1,212 1,166
Total $ 1,689 $ 1,652 $ 1,586
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] Total sales and revenues Total sales and revenues Total sales and revenues
v3.25.4
Guarantees and product warranty (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Guarantor Obligations    
Guarantees, maximum potential amount of future payments $ 458 $ 368
Segment assets 98,585 87,764
SPC liabilities in consolidated statement 77,267 68,270
Customer    
Guarantor Obligations    
Unused commitments and lines of credit for customers 901  
Dealer    
Guarantor Obligations    
Unused commitments and lines of credit for customers 291  
Variable Interest Entity, Primary Beneficiary    
Guarantor Obligations    
Segment assets 1,190 1,140
SPC liabilities in consolidated statement $ 1,190 $ 1,140
v3.25.4
Guarantees and product warranty - Product Warranty (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Movement in Standard Product Warranty Accrual    
Warranty liability, beginning of period $ 1,700 $ 1,894
Reduction in liability (payments) (836) (824)
Increase in liability (new warranties) 762 630
Warranty liability, end of period $ 1,626 $ 1,700
v3.25.4
Segment information (Details)
 12 Months Ended
Dec. 31, 2025
group_president
segment
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information      
Number of group presidents | group_president 4    
Number of operating segments 5    
Useful life to amortize goodwill for segment assets 20 years    
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Operating Income (Expense), Net Other Operating Income (Expense), Net Other Operating Income (Expense), Net
Reportable Subsegments      
Segment Reporting Information      
Number of operating segments led by Group Presidents 3    
Number of operating segments led by Group president responsible for corporate services 1    
Number of reportable segments 4    
All Other Segment      
Segment Reporting Information      
Number of group presidents | group_president 1    
Number of smaller operating segments led by Group President | group_president 1    
v3.25.4
Segment information - Disaggregation of revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Sales and revenue by geographic region      
Total sales and revenues $ (67,589) $ (64,809) $ (67,060)
Intersegment Sales and Revenues      
Sales and revenue by geographic region      
Total sales and revenues 5,888 5,556 5,428
Corporate Items and Eliminations      
Sales and revenue by geographic region      
Total sales and revenues 805 812 748
Corporate Reconciling Items and Eliminations      
Sales and revenue by geographic region      
Total sales and revenues 6,693 6,368 6,176
North America      
Sales and revenue by geographic region      
Total sales and revenues (36,609) (34,397) (34,606)
North America | Corporate Items and Eliminations      
Sales and revenue by geographic region      
Total sales and revenues 523 503 479
Latin America      
Sales and revenue by geographic region      
Total sales and revenues (6,988) (6,708) (6,665)
Latin America | Corporate Items and Eliminations      
Sales and revenue by geographic region      
Total sales and revenues 89 87 80
EAME      
Sales and revenue by geographic region      
Total sales and revenues (12,793) (12,316) (13,673)
EAME | Corporate Items and Eliminations      
Sales and revenue by geographic region      
Total sales and revenues 97 107 88
Asia/Pacific      
Sales and revenue by geographic region      
Total sales and revenues (11,199) (11,388) (12,116)
Asia/Pacific | Corporate Items and Eliminations      
Sales and revenue by geographic region      
Total sales and revenues 96 115 101
Segments Excluding All Other Segments | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (68,348) (65,585) (67,763)
Segments Excluding All Other Segments | Intersegment Sales and Revenues      
Sales and revenue by geographic region      
Total sales and revenues 5,607 5,248 5,110
Segments Excluding All Other Segments | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (73,955) (70,833) (72,873)
Segments Excluding All Other Segments | North America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (37,106) (34,880) (35,057)
Segments Excluding All Other Segments | Latin America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (7,077) (6,797) (6,746)
Segments Excluding All Other Segments | EAME | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (12,884) (12,416) (13,749)
Segments Excluding All Other Segments | Asia/Pacific | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (11,281) (11,492) (12,211)
Construction Industries | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (24,800) (25,344) (27,294)
Construction Industries | Intersegment Sales and Revenues      
Sales and revenue by geographic region      
Total sales and revenues 260 111 124
Construction Industries | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (25,060) (25,455) (27,418)
Construction Industries | North America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (14,064) (14,576) (15,343)
Construction Industries | Latin America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (2,358) (2,553) (2,307)
Construction Industries | EAME | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (4,595) (4,315) (5,254)
Construction Industries | Asia/Pacific | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (3,783) (3,900) (4,390)
Resource Industries | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (12,185) (12,100) (13,329)
Resource Industries | Intersegment Sales and Revenues      
Sales and revenue by geographic region      
Total sales and revenues 289 371 340
Resource Industries | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (12,474) (12,471) (13,669)
Resource Industries | North America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (4,643) (4,597) (5,292)
Resource Industries | Latin America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (2,292) (2,079) (2,040)
Resource Industries | EAME | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (2,061) (1,809) (2,075)
Resource Industries | Asia/Pacific | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (3,189) (3,615) (3,922)
Power & Energy      
Sales and revenue by geographic region      
Total sales and revenues (27,143) (24,088) (23,355)
Power & Energy | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (27,143) (24,088) (23,355)
Power & Energy | Intersegment Sales and Revenues      
Sales and revenue by geographic region      
Total sales and revenues 5,058 4,766 4,646
Power & Energy | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (32,201) (28,854) (28,001)
Power & Energy | North America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (15,558) (13,005) (11,982)
Power & Energy | Latin America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (1,985) (1,763) (1,983)
Power & Energy | EAME | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (5,717) (5,787) (5,929)
Power & Energy | Asia/Pacific | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (3,883) (3,533) (3,461)
Financial Products Segment | Related Party      
Sales and revenue by geographic region      
Total sales and revenues (712) (711) (690)
Financial Products Segment | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (4,220) (4,053) (3,785)
Financial Products Segment | Intersegment Sales and Revenues      
Sales and revenue by geographic region      
Total sales and revenues 0 0 0
Financial Products Segment | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (4,220) (4,053) (3,785)
Financial Products Segment | North America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (2,841) (2,702) (2,440)
Financial Products Segment | Latin America | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (442) (402) (416)
Financial Products Segment | EAME | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (511) (505) (491)
Financial Products Segment | Asia/Pacific | Operating Segments Excluding Intersegment Eliminations      
Sales and revenue by geographic region      
Total sales and revenues (426) (444) (438)
Other Operating Segment      
Sales and revenue by geographic region      
Total sales and revenues (46) (36) (45)
Other Operating Segment | Intersegment Sales and Revenues      
Sales and revenue by geographic region      
Total sales and revenues 281 308 318
Other Operating Segment | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (327) (344) (363)
Other Operating Segment | North America | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (26) (20) (28)
Other Operating Segment | Latin America | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues 0 2 1
Other Operating Segment | EAME | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues (6) (7) (12)
Other Operating Segment | Asia/Pacific | Operating Segments      
Sales and revenue by geographic region      
Total sales and revenues $ (14) $ (11) $ (6)
v3.25.4
Segment information - Energy & transportation sales (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Energy and transportation sales      
Total sales and revenues $ 67,589 $ 64,809 $ 67,060
Power & Energy      
Energy and transportation sales      
Total sales and revenues 27,143 24,088 23,355
Power & Energy | Oil and Gas      
Energy and transportation sales      
Total sales and revenues 7,502 6,980 6,988
Power & Energy | Power Generation      
Energy and transportation sales      
Total sales and revenues 10,275 7,756 6,362
Power & Energy | Industrial      
Energy and transportation sales      
Total sales and revenues 4,071 3,990 4,871
Power & Energy | Transportation      
Energy and transportation sales      
Total sales and revenues $ 5,295 $ 5,362 $ 5,134
v3.25.4
Segment information - Reconciliation of profit from reportable segments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information      
Total sales and revenues $ 67,589 $ 64,809 $ 67,060
Less:      
Cost of goods sold 44,752 40,199 42,767
Reclassification before tax 11,541 13,373 13,050
Total from Reportable Segments      
Less:      
Reclassification before tax 14,047 15,371 15,656
Total from Reportable Segments | Operating Segments      
Segment Reporting Information      
Total sales and revenues 73,955 70,833 72,873
Less:      
Cost of goods sold 49,885 45,574 47,972
SG&A/R&D 7,574 7,403 7,014
Other segment reporting items 2,449 2,485 2,231
Reclassification before tax 14,047 15,371 15,656
Construction Industries | Operating Segments      
Segment Reporting Information      
Total sales and revenues 25,060 25,455 27,418
Less:      
Cost of goods sold 18,393 17,326 18,658
SG&A/R&D 1,902 1,931 1,844
Other segment reporting items 90 33 (59)
Reclassification before tax 4,675 6,165 6,975
Resource Industries | Operating Segments      
Segment Reporting Information      
Total sales and revenues 12,474 12,471 13,669
Less:      
Cost of goods sold 9,018 8,452 9,439
SG&A/R&D 1,513 1,460 1,395
Other segment reporting items (45) 21 (1)
Reclassification before tax 1,988 2,538 2,836
Power & Energy      
Segment Reporting Information      
Total sales and revenues 27,143 24,088 23,355
Power & Energy | Operating Segments      
Segment Reporting Information      
Total sales and revenues 32,201 28,854 28,001
Less:      
Cost of goods sold 22,474 19,796 19,875
SG&A/R&D 3,330 3,241 3,084
Other segment reporting items (21) 81 106
Reclassification before tax 6,418 5,736 4,936
Financial Products Segment | Operating Segments      
Segment Reporting Information      
Total sales and revenues 4,220 4,053 3,785
Less:      
Cost of goods sold 0 0 0
SG&A/R&D 829 771 691
Other segment reporting items 2,425 2,350 2,185
Reclassification before tax $ 966 $ 932 $ 909
v3.25.4
Segment information - Reconciliations of consolidated profit before taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Sales and revenue by geographic region      
Consolidated profit before tax $ 11,541 $ 13,373 $ 13,050
Cost centers (11) (1) (7)
Corporate costs (1,006) (889) (913)
Timing (175) 133 (30)
Restructuring costs (445) (359) (780)
Methodology differences:      
Inventory/cost of sales 49 33 160
Postretirement benefit income (expense) 185 67 (65)
Stock-based compensation expense (230) (223) (208)
Financing costs (180) (126) (91)
Currency (81) 145 6
Goodwill impairment charge 0 0 0
Other income/expense methodology differences (470) (740) (624)
Other methodology differences (134) (81) (70)
Segments Excluding All Other Segments      
Sales and revenue by geographic region      
Consolidated profit before tax 14,047 15,371 15,656
Other Operating Segment      
Sales and revenue by geographic region      
Consolidated profit before tax $ (8) $ 43 $ 16
v3.25.4
Segment information - Reconciliation of assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Reconciliation of assets    
Segment assets $ 98,585 $ 87,764
Items not included in segment assets:    
Cash and cash equivalents 9,980 6,889
Deferred income taxes 2,263 2,759
Operating Segments    
Reconciliation of assets    
Segment assets 64,392 60,325
Operating Segments | Construction Industries    
Reconciliation of assets    
Segment assets 5,442 5,546
Operating Segments | Resource Industries    
Reconciliation of assets    
Segment assets 6,087 6,082
Operating Segments | Power & Energy    
Reconciliation of assets    
Segment assets 11,387 11,772
Operating Segments | Financial Products Segment    
Reconciliation of assets    
Segment assets 41,476 36,925
Operating Segments | Other Operating Segment    
Reconciliation of assets    
Segment assets 1,516 1,403
Corporate Items and Eliminations    
Items not included in segment assets:    
Cash and cash equivalents 9,333 6,165
Deferred income taxes 2,749 3,194
Goodwill and intangible assets 4,669 4,478
Property, plant and equipment – net and other assets 4,689 4,808
Inventory methodology differences (3,622) (3,560)
Liabilities included in segment assets 15,330 11,973
Other assets $ (471) $ (1,022)
v3.25.4
Segment information - Reconciliations of depreciation and amortization (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of Depreciation and amortization:      
Depreciation and amortization $ 2,262 $ 2,153 $ 2,144
Operating Segments      
Reconciliation of Depreciation and amortization:      
Depreciation and amortization 1,898 1,781 1,780
Operating Segments | Construction Industries      
Reconciliation of Depreciation and amortization:      
Depreciation and amortization 266 233 221
Operating Segments | Resource Industries      
Reconciliation of Depreciation and amortization:      
Depreciation and amortization 252 230 277
Operating Segments | Power & Energy      
Reconciliation of Depreciation and amortization:      
Depreciation and amortization 661 578 551
Operating Segments | Financial Products Segment      
Reconciliation of Depreciation and amortization:      
Depreciation and amortization 719 740 731
Operating Segments | Other Operating Segment      
Reconciliation of Depreciation and amortization:      
Depreciation and amortization 267 284 261
Corporate Items and Eliminations      
Items not included in segment depreciation and amortization:      
Cost centers 103 95 91
Other $ (6) $ (7) $ 12
v3.25.4
Segment information - Reconciliations of capital expenditures (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Capital expenditures from reportable segments:      
Capital expenditures $ 4,286 $ 3,215 $ 3,092
Operating Segments      
Capital expenditures from reportable segments:      
Capital expenditures 3,826 2,915 2,829
Operating Segments | Construction Industries      
Capital expenditures from reportable segments:      
Capital expenditures 358 323 376
Operating Segments | Resource Industries      
Capital expenditures from reportable segments:      
Capital expenditures 353 228 210
Operating Segments | Power & Energy      
Capital expenditures from reportable segments:      
Capital expenditures 1,774 1,279 944
Operating Segments | Financial Products Segment      
Capital expenditures from reportable segments:      
Capital expenditures 1,341 1,085 1,299
Operating Segments | Other Operating Segment      
Capital expenditures from reportable segments:      
Capital expenditures 254 285 295
Corporate Items and Eliminations      
Items not included in segment capital expenditures:      
Cost centers 98 193 102
Timing 22 (149) (44)
Other $ 86 $ (29) $ (90)
v3.25.4
Segment information - Information about geographic areas (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information      
Total sales and revenues $ 67,589 $ 64,809 $ 67,060
Property, plant and equipment - net 15,140 13,361  
Inside United States      
Segment Reporting Information      
Total sales and revenues 32,880 30,624 31,053
Property, plant and equipment - net 9,455 8,213  
Outside United States      
Segment Reporting Information      
Total sales and revenues 34,709 34,185 $ 36,007
Property, plant and equipment - net $ 5,685 $ 5,148  
v3.25.4
Restructuring income/costs - Restructuring and related costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 448 $ 359 $ 780
Employee separation      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 106 64 74
Divestitures      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 30 164 586
Contract termination      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 4 7 7
Long-lived asset impairments      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 17 6 3
Other restructuring costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 291 $ 118 $ 110
v3.25.4
Subsequent Events (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Feb. 14, 2026
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Subsequent Event        
Net cash paid for acquisition   $ 47 $ 34 $ 75
RPMGlobal Holding Limited | Subsequent Event | Forecast        
Subsequent Event        
Net cash paid for acquisition $ 790