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Caterpillar Shares Jump to Record on Q3 Beat, Data-Center Power Boom

Investor reaction reflects a shift toward supplying prime power for AI data centers.

Overview

  • Caterpillar posted adjusted EPS of $4.95 on revenue of about $17.6 billion, topping Wall Street estimates on both metrics.
  • Energy & Transportation led performance with sales up 17% to $8.4 billion, as power generation revenue rose 31% on data-center demand and management highlighted the prime power opportunity.
  • Backlog reached a record $39.8 billion, and the company lifted its full-year view to expect “modestly higher” sales.
  • Operating margin slipped to roughly 17.3% year over year as higher costs and tariffs weighed, with a projected full-year net tariff impact of $1.6 billion to $1.75 billion.
  • The stock rose about 12%–13% after the report, hitting all-time highs on the stronger outlook and data-center momentum.