Caterpillar Sees AI-Driven Demand Boost Sales Growth Forecast

Caterpillar's sales growth forecast has been raised for 2026, thanks to increasing demand for its power-generation and construction equipment driven by the buildout of AI data centers. The company reported a 24% increase in revenue to $20.54 billion for the quarter ending June 30.

Its core construction segment revenue grew 35%, with a 50% jump in retail sales in North America, where non-residential investment in critical infrastructure programs is contributing to overall construction spending levels. CEO Joe Creed attributed this growth to 'non-residential investment in critical infrastructure programs, heavy construction and data centers.'

The power and energy arm of the company posted a 17% increase in revenue, with Caterpillar building power generators and backup power equipment under this segment.