Caterpillar stock jumps on record backlog, boom in power and energy equipment for data centers
What happened: Caterpillar (CAT) stock jumped 5% in premarket on Thursday.
What’s behind the move: The heavy equipment maker noted “robust order activity” and a record backlog in the first quarter, in part fueled by the artificial intelligence infrastructure build-out.
Caterpillar noted that its Power & Energy segment’s total sales jumped an annualized 22% in the first three months of the year. The growth was driven by electricity generation equipment for data centers, including engines, turbines, and turbine-related services.
The company now estimates full-year revenue growth will be in the low double digits, significantly higher than the 7% growth rate it had previously projected.
What else you need to know: Caterpillar has become a winner of the AI trade by providing the massive power infrastructure required to keep data centers running.
Caterpillar expects the Trump administration’s tariff costs this year to range from $2.2 billion to $2.4 billion, lower than the previously expected $2.6 billion.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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