Caterpillar reported second-quarter results on Tuesday that significantly surpassed market forecasts, prompting the company to raise its full-year revenue guidance. The strong performance was fueled by surging demand from artificial intelligence data center construction, which drove a substantial increase in orders for its power generation and building equipment.

According to the earnings report, Caterpillar's second-quarter adjusted earnings per share came in at $8.17, a 73% year-over-year jump and well above the analyst consensus estimate of roughly $6.20. Total quarterly sales and revenue reached a record $20.5 billion, up 24% from a year ago, marking the first time the company has surpassed the $20 billion threshold in a single quarter.

The robust results were driven by growth across all major segments. The construction industries segment saw revenue rise 35% to $8.3 billion, with particularly strong performance in North America where sales surged 50%. The power and energy segment posted a 17% revenue increase to $8.2 billion, primarily supported by demand for data center power generation.

New orders during the quarter were valued at $9.4 billion, pushing the company's order backlog to a record $72.1 billion, roughly 92% higher than the same period last year. Based on this strong demand, Caterpillar raised its full-year sales growth forecast from “low double digits” to “mid-to-high double digits.” Additionally, following the recognition of a $392 million tariff refund in the second quarter, the company now expects its full-year tariff costs to be around $2.2 billion, down from the previously forecast range of $2.2 billion to $2.6 billion.

CEO Jim Umpleby, who is Chairman and Chief Executive Officer, stated, “This is the first time in our company’s history that we have generated more than $20 billion in sales and revenue in a single quarter. The strong order rate and continued growth in our backlog reflect the broad-based momentum we are seeing across our three primary business segments.”