Caterpillar lifts 2026 sales growth forecast as AI buildout powers on

Caterpillar lifts 2026 sales growth forecast as AI buildout powers on Aug 4 : Caterpillar raised its annual revenue growth forecast after beating second-quarter profit estimates on Tuesday, benefiting from a buildout of AI data centers that has spurred demand for its power-generation and construction equipment. Shares of the company jumped 11 per cent in premarket trading, sending Dow futures up 0.6 per cent, after it cut its full-year tariff costs forecast to around $2.2 billion from the previously expected $2.2 billion to $2.6 billion. Over the last few quarters, the equipment giant has seen a surge in orders for construction equipment amid a nationwide buildout of data centers as well as the backup power equipment needed for such buildings. "Construction leading growth in the quarter was a standout," Oppenheimer analyst Kristen Owen said. The stock's reaction "reflects the importance of the durability of core Caterpillar businesses in sustaining the stock's momentum." Caterpillar's results are often seen as a bellwether for the industrial economy. Its quarterly earnings beat and raised forecast signal that the AI-led demand boom for ancillary equipment is sustainable. In the April-to-June quarter, Caterpillar said it booked orders worth $9.4 billion, taking its order backlog to a record $72.1 billion. Its overall revenue grew 24 per cent to an all-time high of $20.54 billion in the quarter ending June 30. Core construction segment revenue grew 35 per cent in that period on strong retail sales, particularly in top market North America, where it recorded a 50 per cent jump. The power and energy arm, meanwhile, posted 17 per cent growth in revenue. The two segments accounted for a combined 81 per cent of Caterpillar's total revenue. The company builds power generators and backup power equipment under its power & energy segment, while its construction industries segment manufactures excavators and bulldozers. Caterpillar also said it recorded an expected tariff recovery of $392 million in the second quarter. It reported adjusted per-share profit of $8.17, compared with $4.72 per share a year earlier, well above analysts' expectation of $6.20 per share, according to data compiled by LSEG.