Caterpillar stock climbed more than 10% after posting second-quarter earnings that crushed expectations. The equipment giant reported adjusted earnings of $8.17 per share against a forecast of $5.71, while revenue hit $20.5 billion, up 24% from the prior year and well above the $18.36 billion estimate.
The real story sits in the power unit. Sales there jumped 17% to $8.24 billion as data centers ramped up demand for AI infrastructure. Operators building out capacity for artificial intelligence systems needed more generators, turbines, and backup power capacity. That segment's profit margin expanded to 24.6%, marking a 30% increase in absolute profit dollars.
Beyond power, construction industries posted a 35% revenue jump to $8.35 billion. Resource industries grew 20% to $4.65 billion. The company's operating margin widened to 20.9% from 17.3% a year prior, signaling better pricing power and operational use across the board.
Management raised full-year sales guidance after landing a record $72.1 billion order backlog. That stack of unfilled orders gives visibility into demand well into next year and removes uncertainty around whether the current cycle holds. The financial products unit also performed, with revenue up 10% and profit climbing 32% to $328 million.
This article is for informational purposes only and does not constitute investment advice.
