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The Dow Jones Industrial Average (NYSEARCA:DIA) has climbed 3.4% year-to-date through Wednesday, but three industrial and energy giants are leaving the broader index behind. Caterpillar (NYSE:CAT), Honeywell (NASDAQ:HON), and Chevron (NYSE:CVX) are leading the Dow’s 2026 charge with double-digit gains driven by record earnings, strategic restructuring, and energy market resilience.
The Dow’s 2026 Leaderboard
| Company | Ticker | YTD Return |
|---|---|---|
| Caterpillar | CAT | +31.6% |
| Honeywell | HON | +23.6% |
| Chevron | CVX | +21.8% |
All three are converting operational strength into shareholder returns while the broader market treads water. It’s a massive reversal as six of the seven Magnificent 7 stocks are down so far this year, and the only gainer is NVIDIA (NASDA: NVDA), which is up a paltry .79%.
#3: Chevron Delivers Record Production Despite Oil Price Headwinds
Chevron posted a Q4 2025 revenue beat of $46.87 billion versus estimates of $46.7 billion while also beating on earnings with adjusted EPS of $1.52 against the $1.44 consensus. The company achieved record worldwide production with a 12% year-over-year increase, driven by the Hess acquisition integration.
CEO Mike Wirth called it a validation of resilience: “2025 was a year of significant achievement. We successfully integrated Hess, started-up major projects, delivered record production and reorganized our business. This resulted in industry-leading free cash flow growth and superior shareholder returns, despite declining oil prices.”
Operating cash flow surged 24% to $10.8 billion, while free cash flow jumped 26% to $5.5 billion. That cash funded a 4% dividend increase to $1.78 per share and a $12.1 billion share repurchase program in 2025. Chevron also secured four offshore exploration leases in Greece with a 70% operating interest, expanding its Mediterranean footprint alongside operations in Israel, Cyprus, and Egypt.
Melius upgraded Chevron to Buy with a $205 price target, citing exploration upside in Venezuela and the company’s focus on dividends and buybacks. Chevron carries a 3.8% dividend yield and 72% institutional ownership.
#2: Honeywell’s Restructuring Play Unlocks Value
Honeywell missed on Q4 2025 revenue at $9.76 billion versus the $9.87 billion estimate, but beat on adjusted EPS at $2.59 against $2.54. Orders surged 23% organically, and the backlog now exceeds $37 billion. Aerospace Technologies grew 21% organically, while Building Automation increased 8%, fueled by AI data center demand and aerospace aftermarket services.
The key catalyst is Honeywell’s separation into three public companies. After spinning off Solstice Advanced Materials in 2025, the company is preparing to separate its automation and aerospace businesses, unlocking value by letting each trade on its own merits.
For 2026, Honeywell guided to sales of $38.8 billion to $39.8 billion with adjusted EPS of $10.35 to $10.65 and free cash flow of $5.3 billion to $5.6 billion. The analyst consensus price target sits at $244.62, near the current price of approximately $241.
#1: Caterpillar Posts Record Revenue on Power Generation Boom
Caterpillar crushed Q4 2025 expectations with revenue of $19.13 billion against the $17.8 billion estimate. Adjusted EPS came in at $5.16, just above the $4.71 consensus. CEO Joe Creed called it “the highest full-year sales and revenues in Caterpillar’s history and a single-quarter record of $19.1 billion.”
The Power and Energy segment led the way, surging 23% to $9.40 billion on AI data center demand for power-generation equipment. Construction Industries grew 15% to $6.93 billion and Resource Industries rose 13% to $3.35 billion. Caterpillar entered 2026 with a record backlog, providing visibility into continued growth.
The company deployed $7.9 billion in share repurchases and dividends in 2025, backed by $11.74 billion in operating cash flow. The analyst consensus price target of $692 sits below the current price of $752. At a 40x trailing P/E, Caterpillar trades at a premium, though its exposure to power generation and India’s infrastructure boom supports the valuation.
Why These Three Are Winning
Caterpillar, Honeywell, and Chevron are outperforming on specific catalysts: Caterpillar is capturing AI infrastructure demand, Honeywell is unlocking value through restructuring, and Chevron is generating cash despite oil price weakness. All three are returning capital through dividends and buybacks as investors rotate from growth to quality.
The Dow’s top performers aren’t the flashiest names, but they’re all winning big in a market where most stocks are treading water.