Caterpillar’s Q2 2026 Earnings Soar on Data Center Demand, Shares Jump 11%

Caterpillar Inc. reported blockbuster second-quarter 2026 earnings on August 4, blowing past Wall Street expectations as data center expansion fueled record demand for its power and energy equipment. Sales surged to $20.5 billion, up from the $19 billion average estimate compiled by Bloomberg. Earnings excluding one-time items hit $8.17 per share, nearly doubling from $4.72 a year earlier and surpassing the $6.17 analyst consensus. The company’s backlog hit a record $72 billion, a 92% jump year-over-year, driven almost entirely by orders tied to data center build-outs. Shares jumped more than 11% in pre-market trading following the results. CEO Joe Creed highlighted “strong order rates and a growing backlog reflecting broadening momentum across all three primary segments.” The power and energy unit, which produces generators, engines, and gas turbines for industrial facilities and large-scale computing centers, has overtaken construction machinery as Caterpillar’s largest revenue generator. Investors have increasingly linked the company to the AI boom, though recent weeks saw a pullback in AI-adjacent stocks over concerns about Big Tech’s capital spending sustainability. Caterpillar’s results ease those worries, with the record backlog underscoring sustained demand. The construction industries segment also posted strong growth, with sales up 35% as dealers restocked equipment. The earnings beat comes despite recent downgrades and skepticism from figures like investor Michael Burry, who has taken a short position on the stock, citing regulatory headwinds for data center construction imposed by local and state governments.