Caterpillar (NYSE: CAT) reported fourth-quarter revenue that exceeded Wall Street expectations, fueled by strong demand for power-generation equipment tied to artificial intelligence infrastructure, sending shares up more than 3% intraday.
Spending on data centers supporting advanced AI models continued to boost demand for Caterpillar’s energy solutions, contributing to a more than 65% rise in the stock over the past year.
Sales in the company’s power and energy segment reached $9.4 billion, up 23% year over year, driven by higher volumes and pricing. Segment profit rose 25% to $1.84 billion.
Overall, Caterpillar reported quarterly revenue of $19.13 billion, an 18% increase from a year earlier and well above Bloomberg consensus estimates of $17.91 billion. Adjusted earnings per share rose to $5.16, compared with $5.14 a year ago and analyst expectations of $4.69.
Chief Executive Officer Joe Creed said the results reflected strong end-market demand and disciplined execution, adding that Caterpillar’s record backlog positioned the company with solid momentum heading into 2026.
The company reiterated its goal of achieving annual revenue growth near the upper end of its previously stated 5% to 7% compound annual growth range. However, analysts noted that margin expansion guidance came in slightly below expectations due to approximately $2.6 billion in incremental costs related to U.S. tariffs.
