Caterpillar Surges on Strong Q2 Earnings and Record Backlog

Caterpillar Inc., a U.S. machinery maker, reported strong sales and earnings in its second-quarter results, surpassing Wall Street estimates. The company's shares surged over 11% in pre-market trading on August 4 after it announced Q2 earnings of $8.17 per share, excluding one-time items, compared to $4.72 a year earlier.

The sales figure reached $20.5 billion, exceeding the average estimate compiled by Bloomberg of $19 billion. A key driver behind this growth is the increasing demand for data center equipment, which has led to a record backlog of $72 billion for the company, up 92% from last year.

Caterpillar's power and energy unit manufactures generators, engines, and gas turbines for industrial facilities and large-scale computing centers. This segment has become the largest by sales, overtaking the construction machinery business.