Caterpillar Sees Mid-to-High Teen Revenue Growth Boosted by Data Center Rush

Caterpillar, a US heavy machinery maker, has lifted its full-year revenue growth outlook after a strong spring quarter. The company's $9.4 billion in orders helped push its backlog to a record $72.1 billion.

The surge in demand was driven by AI data center construction, which is also boosting demand for backup power systems and construction equipment. Revenue rose 24% to $20.54 billion in the April-to-June quarter, with adjusted earnings jumping to $8.17 a share from $4.72 a year earlier.

The company's management attributed the stronger order book to data center work, which is lifting demand for construction equipment and backup power systems. The construction industries revenue rose 35%, while its power and energy unit saw a 17% increase.

Caterpillar now expects full-year revenue growth in the mid-to-high teens, up from its previous low double-digit view. It also narrowed its forecast for tariff-related costs to about $2.2 billion.