economy
May 1, 2026
Don't look now, but Caterpillar is becoming an AI darling
Caterpillar — which was formed decades before computers and nearly a century before ChatGPT — is becoming an AI play.
TL;DR
- Caterpillar saw a 22% revenue increase to $17.4 billion, exceeding S&P Capital IQ estimates.
- The power and energy segment experienced a 22% rise, significantly driven by demand from AI data centers and cloud computing.
- Caterpillar's order backlog reached a record $63 billion, up 79% year-over-year, with some orders extending to 2028.
- The company is accelerating plans to increase large engine production to meet demand.
- The stock closed up 10% on Thursday, contributing to a rise in the Dow Jones Industrial Average.
- The Iran war presents near-term risks but could lead to new energy projects in 2027.