Caterpillar Shares Surge on Strong Earnings and AI-Driven Demand

Caterpillar's second-quarter earnings beat estimates, driving shares up by as much as 12% in early trading. The equipment giant saw a surge in orders for construction equipment amid a nationwide buildout of data centers and backup power equipment needed for such buildings.

The company reported adjusted per-share profit of $8.17, exceeding analysts' expectation of $6.20 per share. Revenue grew 24% to $20.54 billion in the quarter ending June 30, with core construction segment revenue growing 35% on strong retail sales in North America.

Caterpillar's CEO Joe Creed attributed the growth to non-residential investment in critical infrastructure programs, heavy construction, and data centers contributing to overall construction spending levels.