Caterpillar Inc. shares climbed sharply after the heavy-machinery maker reported record quarterly revenue of $20.5 billion, powered by surging demand tied to the global buildout of data centers and energy infrastructure.
The results comfortably exceeded Wall Street expectations, lifting the broader Dow Jones Industrial Average as investors cheered evidence that the company’s power-systems division is capitalizing on the artificial intelligence boom.
Caterpillar’s energy and transportation segment, which includes the large reciprocating engines and turbines used to power data centers, has emerged as a key growth engine. Operators racing to expand computing capacity have driven a wave of orders for backup and prime power generation equipment.
The earnings beat marks a notable turnaround in sentiment. Earlier this year, some analysts had questioned whether doubts over the pace of data center construction would weigh on the company’s outlook, prompting a downgrade and a slide in the stock.
Beyond power systems, Caterpillar continues to draw revenue from its core construction and mining equipment businesses, though demand across those segments has been more uneven amid shifting global infrastructure spending.
The strong quarter reflects a broader trend in which industrial suppliers are benefiting from the infrastructure demands of AI, as technology firms pour capital into the physical facilities and electricity capacity required to run advanced computing systems.
The rally added to gains across the Dow, with Caterpillar among the index’s top performers on the day. The stock’s advance underscored the market’s appetite for companies positioned to profit from the expanding digital economy.
Caterpillar is expected to provide further detail on its order backlog and full-year outlook as it navigates continued strength in power generation alongside more cautious conditions in traditional construction markets.