Caterpillar Crushes Q2 Earnings Estimates on AI Data Center Boom

Caterpillar's second-quarter profit jumped on strong demand for its power and construction equipment. The company raised its revenue growth forecast after beating estimates, thanks to a buildout of AI data centers driving orders for backup power equipment.

The equipment giant has seen a surge in orders for construction equipment over the last few quarters, amid a nationwide buildout of data centers and commercial buildings. This has led to a record order backlog of $72.1 billion and revenue growth of 24% to $20.54 billion in the quarter ending June 30.

Caterpillar's core construction segment revenue grew 35%, while its power and energy arm posted 17% growth in revenue. The company cut its tariff costs forecast for the full year to around $2.2 billion, up from an earlier projection of $2.2 billion to $2.6 billion.