Caterpillar's AI-Driven Sales Boom Lifts Outlook

Caterpillar's sales outlook has been boosted by its latest quarterly results. The US heavy machinery maker reported revenue of $20.54 billion for the April-to-June quarter, a 24% increase from the same period last year.

The company's orders have surged to $9.4 billion, with AI data center construction being a major contributor. This has pushed Caterpillar's backlog to a record $72.1 billion, giving it more visibility into future sales.

Caterpillar's management expects full-year revenue growth in the mid-to-high teens, up from its previous forecast of low double-digit growth. The company also narrowed its estimate for tariff-related costs to about $2.2 billion.