Caterpillar Power-Generation Business Fuels Surprise Earnings Beat

Caterpillar Inc., the US company behind the Bloomberg Terminal, has posted second-quarter earnings and revenue that beat Wall Street expectations. The company's power-generation business is driving growth, thanks to increased data center spending.

Earnings excluding one-time items came in at $8.17 per share, significantly higher than the $4.72 recorded a year earlier. This beats the average analyst estimate of $6.17 compiled by Bloomberg.

Sales rose to $20.5 billion, exceeding the $19 billion average estimate. The strong growth is attributed to the increasing demand for power generation equipment in data centers.