Caterpillar Stock Soars 12% on Blowout Earnings and Record Backlog

Caterpillar's stock surged 12% on Tuesday morning after the company delivered a blowout second quarter, exceeding Wall Street estimates and raising its full-year revenue growth outlook.

The industrial-equipment manufacturer's power-generation systems and heavy equipment are in high demand due to booming AI data-center construction, driving a 24% year-over-year increase in revenue to $20.54 billion.

Adjusted earnings climbed to $8.17 per share, surpassing expectations of $6.20, while the company's two largest businesses - Construction Industries and Power & Energy - remained key growth engines, accounting for 81% of total revenue.

Caterpillar's Chief Executive Joe Creed attributed the company's success to continued investment in critical infrastructure, heavy construction, and AI data centers, which are supporting construction activity and driving demand for its products.