CAT Stock Surges on Record Cash Flow and Swelling Backlog

Caterpillar (CAT) stock saw a significant jump of 5.6% to around $876 on Thursday after the company's Q2 earnings exceeded expectations.

The machinery giant reported record cash flow from Machinery, Energy and Transportation at $5.1 billion, exceeding estimates. The company also revealed a swelling backlog of $72 billion, with 59% expected to be shipped within the next 12 months.

Caterpillar's revenue reached an all-time high of $20.543 billion in Q2, up 24% year-over-year, while net income excluding extra items rose by 65%. The company attributed its improved margins to stronger pricing and volume in Q2.