Caterpillar Sees Mid-Twenties Growth on Record Backlog, Power Boom

Caterpillar Inc.'s second-quarter 2026 results show revenue of US$20.54 billion and net income of US$3.59 billion, with the company raising its full-year 2026 guidance to mid- to high-teens sales and revenue growth.

This growth is driven by record backlog and strong demand across construction, power, and energy, as well as resource industries. A notable shift in Caterpillar's mix of growth drivers has occurred due to booming AI data-center and power-generation demand, which has lifted its power business to rival construction in sales while already surpassing it in profitability and margins.

Caterpillar's upgraded mid- to high-teens 2026 sales outlook reinforces the near-term growth catalyst of strong orders and capacity ramp in power. However, the biggest current risk remains policy and regulatory shifts that could curb data center and cross-border demand, potentially affecting Caterpillar's margins.