Caterpillar beats Q2, raises forecast

Caterpillar Inc. reported second-quarter results that beat analyst expectations and raised its full-year revenue growth forecast, driven by strong demand for construction and power-generation equipment amid a nationwide buildout of AI data centers. The company's adjusted earnings per share came in at $8.17, well above the $6.20 expected by analysts, while revenue grew 24% to an all-time high of $20.54 billion. Caterpillar also cut its full-year tariff cost forecast to around $2.2 billion from a previous range of $2.2 billion to $2.6 billion, and recorded a tariff recovery of $392 million in the quarter. The company booked orders worth $9.4 billion in the quarter, pushing its order backlog to a record $72.1 billion. Core construction segment revenue grew 35%, with a 50% jump in North America, while the power and energy segment grew 17%. These two segments accounted for 81% of total revenue. The results were seen as a bellwether for the industrial economy and signaled that the AI-led demand boom for ancillary equipment is sustainable. Shares jumped as much as 12% in morning trading, on track for their best day in over 17 years, and powered a 1.3% rise in the Dow Jones Industrial Average.