Caterpillar Sees Revenue Surge Amid Data Center Buildout

Caterpillar has raised its revenue growth forecast after beating second-quarter profit estimates. The equipment giant benefited from a surge in demand for its power-generation and construction equipment due to the buildout of AI data centers. Shares of Caterpillar rose 9% in premarket trading as it also cut its tariff costs forecast for the full year to around $2.2 billion.

The company saw a significant increase in orders for construction equipment amid the nationwide buildout of data centers and backup power equipment needed for such buildings. This was particularly evident in the North America market, where revenue grew 50% in the quarter ending June 30. Caterpillar's core construction segment revenue grew 35% in that period.

The company's power and energy arm also posted a 17% growth in revenue. Its overall revenue grew 24% to $20.54 billion in the quarter, while its adjusted per-share profit was $8.17, compared with $4.72 per share a year earlier. Caterpillar expects its full-year revenue to grow in the mid-to-high-teens percentage range.