Caterpillar Lifts 2026 Sales Forecast on AI Buildout
- On Tuesday, Caterpillar Inc. raised its annual revenue growth forecast after reporting second-quarter profit of $8.17 per share, beating analyst estimates of $6.20 amid surging demand for AI data center equipment.
- Increased infrastructure spending by President Donald Trump's administration and nationwide data center construction drove a surge in orders, swelling the company's backlog to a record $72.1 billion in the April-to-June quarter.
- Caterpillar reported a $392 million tariff recovery and cut its full-year tariff cost forecast to around $2.2 billion, while core construction segment revenue surged 35%, led by a 50% jump in North America.
- Shares jumped more than 11% in premarket trading, sending Dow futures up 0.6%, as Chief Executive Joe Creed said "strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."
- Despite the strong results, Baird downgraded Caterpillar stock last week to a hold-equivalent rating, citing government efforts to restrict data center construction, while investor Michael Burry disclosed he is shorting the stock.
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Caterpillar lifts 2026 sales forecast on AI buildout
Caterpillar has raised its annual revenue growth forecast after beating second-quarter profit estimates, benefiting from a buildout of AI data centres that has spurred demand for its power-generation and construction equipment.
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