Caterpillar Sees Revenue Growth Surge on Data Center Boom

Caterpillar, a leading equipment manufacturer, has raised its annual revenue growth forecast following strong second-quarter earnings. The company's results were driven by a surge in demand for construction equipment and power-generation gear, particularly from data centers being built across the country.

Shares of Caterpillar jumped 11% in premarket trading after it reported an adjusted profit of $8.17 per share, exceeding analysts' expectations of $6.20 per share. The company also cut its full-year tariff costs forecast to around $2.2 billion from a previous range of $2.2 billion to $2.6 billion.

Caterpillar's construction segment saw a 35% revenue growth in the second quarter, while its power and energy arm posted a 17% increase. The two segments account for approximately 81% of Caterpillar's total revenue.