Caterpillar Soars as Data Center Boom Drives Record Sales Growth
Caterpillar Inc. has reported record-breaking sales and revenue growth in its second-quarter earnings, surpassing Wall Street's expectations and easing concerns about a slowdown in demand for power-generation equipment used in data centers.
The company's stock surged as much as 13% in early trading on Tuesday after it posted stronger sales across all three of its primary segments, including its power and energy unit, which manufactures generators, engines, and gas turbines for industrial facilities and large-scale computing centers.
Caterpillar's power and energy segment has grown to become the company's largest by sales, overtaking its construction machinery business. The segment's growth is being driven by a boom in data center build-outs, with some orders extending as far out as 2030.