CAT Stock Surges as Caterpillar Posts Record-Breaking Q2 Revenue

Caterpillar Inc. (NYSE: CAT) shares surged around 9% in premarket trading Tuesday after the company reported record-breaking second-quarter revenue of $20.5 billion, a 24% increase from the previous year's quarter.

This milestone represents the first time Caterpillar has achieved over $20 billion in sales and revenues in a single quarter, according to Chairman and CEO Joe Creed.

The company's strong performance was driven by growth in its Construction Industries business, which saw revenue increase 35% year-over-year to $8.3 billion, while the Power and Energy business reported a 17% rise to $8.2 billion.

Caterpillar also improved its operating profit margin to 20.9% from 17.3% in the same period last year, as cost pressures eased due to firming equipment demand and price gains that offset inflationary costs.