Caterpillar had its worst day since 2020 despite a record backlog, while ADT jumped 33% on a $15.3 billion buyout

The indexes ended lower on Thursday, but under the surface it was one of the busiest days of earnings season for single stocks. The biggest name in industrials had its worst session in more than six years, two takeover deals were announced, and several mid-sized companies moved more than 20%.

Caterpillar: a beat that wasn't enough

Caterpillar closed down 9.25% at $647.39, according to Yahoo Finance and The Globe and Mail. Kiplinger said it was the stock's biggest one-day decline since March 9, 2020, and the second-worst performance in the Dow after Alphabet.

The quarter itself was strong. Revenue rose 17% to $20.7 billion, ahead of the $20.55 billion analysts expected, and adjusted earnings of $7.20 a share topped the $7.08 estimate, according to LSEG data cited by Reuters. Investing.com said sales were the highest for any quarter in the company's history.

The order backlog reached a record $78.1 billion, up $6 billion from the prior quarter, Reuters reported, but that increase was slower than earlier in the year. Caterpillar kept its 2026 forecast for revenue growth in the mid-to-high teens, while analysts expect about 18%, and held its estimate for tariff costs at around $2.2 billion.

That combination raised the question investors have been asking for months: how long data-center demand for generators and equipment can keep driving growth. Reuters said the shares had already dropped more than 20% since August amid growing opposition to data centers. Investing.com reported that management said capacity in its power and energy business is still limiting growth.

ADT: a 45.6% premium

ADT shares rose 33.2% to $9.87, according to Yahoo Finance data, after the home-security company agreed to be acquired by Thrive Holdings in an all-cash deal. Stockholders will receive $10.00 a share, a 45.6% premium to the unaffected closing price of $6.87 on Oct. 27, the company said.

The agreement values ADT at about $7.6 billion in equity and $15.3 billion in enterprise value, which includes debt. ADT's board approved it unanimously, and the deal is expected to close in the first quarter of 2027, subject to a shareholder vote and U.S. antitrust approval. ADT will become a privately held company.

DoorDash agrees to buy Instacart

DoorDash closed up 5.61% at $179.00, Yahoo Finance data show, after agreeing to acquire Instacart for $65.00 a share, an equity value of about $17 billion, according to the companies. At least 75% of the consideration will be cash, and the price is a 26% premium to Instacart's close on Oct. 22, the last trading day before media reports of a possible deal.

The companies expect the deal to close at the end of 2027 or in the first half of 2028, after regulatory reviews in the U.S., Canada and Israel. Instacart shares fell 2.24% to $57.11, below the offer price.

Earnings winners and losers

Glaukos, which makes treatments for eye diseases, rose 33.65% to $242.48. CNBC reported that third-quarter revenue of $211 million topped the $168 million FactSet consensus and that the company raised its full-year revenue guidance.

Textron gained 11.67% to $87.46 after adjusted earnings of $1.76 a share beat the $1.43 FactSet estimate and the company raised its full-year earnings outlook, according to CNBC.

Eli Lilly closed up 6.63% at $1,373.70, according to Yahoo Finance data, after raising its forecast. StockTitan reported that its third-quarter revenue grew 39%.

On the other side, Sprouts Farmers Market fell 22.58% to $48.00 after third-quarter earnings and revenue missed expectations, CNBC said. The grocer cut its full-year earnings outlook to about $4.80 a share from a prior range of $5.32 to $5.40.

What it means for Friday

Thursday's moves showed how differently investors are treating companies that report. A beat was not enough for Caterpillar when the outlook held still, while clear deal premiums and raised forecasts were rewarded. With Amazon and Intel lower after hours, that split is likely to be tested again at Friday's open.