Caterpillar Beats Earnings Expectations as AI Demand Powers Revenue Growth
Caterpillar, a leading manufacturer of construction equipment and power generators, has lifted its sales growth forecast for 2026. The company's quarterly earnings report beat analyst expectations, driven by strong demand for its products in the AI buildout sector. Revenue grew 24% to an all-time high of $20.54 billion in the quarter ending June 30.
The power and energy segment posted 17% growth in revenue, while core construction segment revenue grew 35% on strong retail sales in North America, where it recorded a 50% jump. Caterpillar's order backlog reached a record $72.1 billion, with orders worth $9.4 billion booked in the second quarter.
The company also cut its full-year tariff costs forecast to around $2.2 billion from the previously expected $2.2 billion to $2.6 billion. Shares of Caterpillar jumped 11% in premarket trading after the earnings report, sending Dow futures up 0.6%.