Caterpillar's Record Quarter Boosted by AI Data-Center Demand

Caterpillar Inc. shares surged after the company posted record second-quarter profits, with revenue exceeding $20 billion for the first time in its history, driven by strong demand across core sectors. Revenue rose 24% year-over-year to $20.54 billion, beating the $19.2 billion average analyst estimate, while adjusted earnings of $8.17 per share far surpassed the expected $6.20. Net income climbed to $3.59 billion from $2.18 billion a year earlier, with Power & Energy sales up 17% on data-center engine demand, Construction Industries up 35%, and Resource Industries up 20%. Operating profit jumped 50% to $4.30 billion, with margins expanding to 20.9%, and the company generated $4.4 billion in operating cash flow while returning $2.2 billion to shareholders. Investors now watch whether data-center purchases and equipment demand can sustain this record pace amid broad-based growth from infrastructure spending and AI-related electricity consumption.