Caterpillar Stock Skyrockets 12% as AI-Fueled Construction Booms

Caterpillar's stock surged 12% on Tuesday morning after the company delivered a blowout second quarter and raised its full-year revenue-growth outlook.

The surge put the stock on track for its strongest one-day gain in over 17 years, fueled by booming AI data-center construction that is driving demand for Caterpillar's power-generation systems and heavy equipment.

Caterpillar reported adjusted earnings of $8.17 per share, crushing Wall Street's estimate of $6.20, while revenue jumped 24% year-over-year to $20.54 billion.

The company's two largest businesses remained key growth engines, with Construction Industries revenue climbing 35%, fueled by a 50% increase in North American retail sales, and Power & Energy revenue rising 17%.

Caterpillar CEO Joe Creed attributed the strong construction activity to continued investment in critical infrastructure, heavy construction, and AI data centers. Quarterly orders reached $9.4 billion, pushing Caterpillar's backlog to a record $72.1 billion, providing strong visibility into future demand.