Caterpillar increased its full-year revenue growth forecast following better-than-expected second-quarter earnings results, as the company benefited from accelerating demand tied to AI infrastructure expansion. The heavy equipment manufacturer also trimmed its annual tariff costs projection to approximately $2.2 billion, down from a previous range of $2.2 billion to $2.6 billion. Share prices climbed in premarket trading, with the stock rising 11% on the announcement, while Dow futures gained 0.6%.
The company’s quarterly performance demonstrated robust underlying demand across its core business segments. In the April-to-June quarter, Caterpillar generated overall revenue of $20.54 billion, representing 24% growth compared with the prior year period. The construction segment posted the strongest performance with 35% revenue growth, driven particularly by North American operations where sales jumped 50%. The power and energy division, which produces generators and backup power systems, grew revenue by 17%. Combined, these two segments represented 81% of total company revenue.
Caterpillar booked $9.4 billion in new orders during the second quarter, pushing its order backlog to a record $72.1 billion. The company recorded adjusted per-share earnings of $8.17, substantially exceeding analyst expectations of $6.20 per share and more than doubling the $4.72 per-share result from the comparable prior-year quarter. Additionally, Caterpillar realized an expected tariff recovery of $392 million in the quarter.
Analysts highlighted the durability of Caterpillar’s core business segments in sustaining momentum, noting that construction’s leadership in growth during the quarter represented a notable positive factor. The company’s results are frequently viewed as a barometer for industrial economy health, and the earnings beat combined with raised guidance suggest that demand dynamics from the AI-driven expansion for supporting equipment remain durable.
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