Caterpillar Raises Revenue Forecast as AI Demand Boom Continues

Caterpillar has raised its annual revenue growth forecast after beating second-quarter profit estimates. The equipment giant saw a surge in orders for construction equipment due to a nationwide buildout of data centers and backup power equipment needed for such buildings.

The company's results are often seen as a bellwether for the industrial economy, and its quarterly earnings beat and raised forecast signal that the AI-led demand boom for ancillary equipment is sustainable. Caterpillar booked orders worth $9.4 billion in the April-to-June quarter, taking its order backlog to a record $72.1 billion.

The power and energy arm of Caterpillar posted 17% growth in revenue, while its core construction segment saw revenue grow by 35%. The two segments accounted for a combined 81% of Caterpillar's total revenue.