Caterpillar Erupts As Quarterly Sales Top $20 Billion For First Time Amid AI Data Center Boom

Caterpillar shares jumped in pre-market trading after reporting a second-quarter beat, driven by strong growth in its heavy machinery, power and energy business amid the data center buildout, reshoring, and other activities reindustrializing the nation under the Trump administration.

Revenue soared 24% from one year ago to $20.54 billion, exceeding the $19.01 billion Bloomberg consensus estimate. Machinery, power and energy revenue climbed 25% to $19.58 billion, while operating income surged 51% to $4.21 billion, well above the $3.5 billion estimate.

Financial Products operating income rose 24% to $263 million, beating Wall Street expectations, though the segment's $962 million in revenue missed forecasts. Research and development spending increased 12% to $616 million.

Here's a snapshot of Caterpillar's second-quarter results, courtesy of Bloomberg:

Revenue $20.54 billion, +24% y/y, estimate $19.01 billion (Bloomberg Consensus)

• Financial segment revenue $962 million, +7.5% y/y, estimate $982.8 million
• Machinery, Power & Energy revenue $19.58 billion, +25% y/y, estimate $18.13 billion
• Machinery, Power & Energy operating income $4.21 billion, +51% y/y, estimate $3.5 billion
• Financial Products operating income $263 million, +24% y/y, estimate $248.1 million

R&D expenses $616 million, +12% y/y, estimate $602.5 million

"This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," Caterpillar CEO Joe Creed wrote in a statement.

Creed continued, "This milestone underscores both the essential work our customers do every day and the dedication of Caterpillar employees worldwide to solving our customers' toughest challenges. Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."

Caterpillar shares surged nearly 8% in premarket trading, suggesting the company cleared the high bar set by investors. This morning's surge follows a 23% decline last month, the stock's worst performance since 2009, as concerns about data-center spending fueled a broader selloff across power-equipment companies.

Last week, Michael Burry announced we shorted Caterpillar for the first time ...

*MICHAEL BURRY SAYS HE SHORTED CATERPILLAR FOR THE FIRST TIME

*BURRY SAYS HE SHORTED TESLA, NVIDIA AND APPLIED MATERIALS

— zerohedge (@zerohedge) June 30, 2026

Read the note where Morgan Stanley expects $1 trillion hyperscaler capex this year.