Caterpillar Smashes Profit Expectations and Raises Revenue Outlook as AI Boom Drives Power Equipment Demand

Caterpillar, widely watched as a gauge of global industrial health, has raised its full-year revenue forecast after delivering a stronger-than-expected first quarter. The company now projects full-year revenue growth in the low double-digit percentage range, up from its previous forecast of about 7% compounded annual growth. First-quarter adjusted profit per share climbed to $5.54, well above the $4.25 recorded a year earlier and beating analyst expectations of $4.62. Total revenue grew 22%. The results were driven by surging demand for power equipment from electricity-hungry data centers fuelling the AI buildout, alongside strong dealer restocking of construction equipment. Revenue from the construction segment jumped 38%, while the power and energy segment rose 22%. However, gains were partly offset by $710 million in unfavorable manufacturing costs tied largely to tariffs.