Caterpillar Roars Ahead as Data Centre Boom Fuels Profit Growth

Caterpillar's stock surged by as much as 13% in early trading on Tuesday after the company exceeded Wall Street's second-quarter expectations and raised its sales outlook.

The construction equipment maker reported stronger sales across its businesses, a record equipment backlog of $72 billion (up 92% from a year ago), and increased its forecast for 2026 sales and revenue growth to mid- to high-teens, from low- to mid-teens previously.

'Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments,' said Chief Executive Joe Creed. The company's power and energy unit manufactures generators, engines, and gas turbines for industrial facilities and large-scale computing centers.

Caterpillar's power equipment business has become its largest by sales, overtaking the construction machinery segment that makes the firm's signature yellow diggers. This growth is attributed to increasing demand for data centre build-outs, which are driving capital spending by Big Tech companies.