Caterpillar Soars on Data Center Boom, Raises Sales Outlook

Caterpillar Inc., a leading manufacturer of construction and mining equipment, has seen its stock surge after it crushed Wall Street's second-quarter expectations. The company reported stronger sales across all its businesses, with a record equipment backlog that has increased investor confidence.

The data center boom is driving profit growth for Caterpillar, as more companies invest in power-generation equipment to support their growing digital infrastructure needs. This trend has eased concerns that demand was beginning to cool down, despite some initial worries about the impact of rising interest rates and inflation on consumer spending.

Caterpillar's strong performance has led it to raise its sales outlook for 2026, with the company now forecasting mid- to high-teens growth. This is an improvement from its previous outlook of low- to mid-teens growth issued in April.