CAT Stock Jumps on Data Center Power Demand

Caterpillar (CAT) has seen its stock price nearly double over the past year, outperforming the S&P 500's 19.1% gain with a 96.3% increase.

The company's Power & Energy segment saw sales to users grow by 72% in Q2 2026, driven by demand for large gensets and turbines used in data centers.

Caterpillar is increasing capacity to meet this demand, restarting a gas engine platform and converting a work-tool plant in Kansas to produce units for data center power generation.

The company has raised its full-year 2026 sales outlook to mid-to-high teens growth, but faces challenges as it earns less per dollar than it used to due to increased costs from adding capacity.