Caterpillar Stock Hits Record High on AI Data Center Equipment Demand

Oct 31, 2025
Caterpillar shares reached an all-time high after reporting stronger-than-expected third-quarter results driven by surging demand for its power-generation equipment used in AI data centers.

Caterpillar shares rose 12% to a record closing price after the company reported stronger-than-expected third-quarter earnings, according to Bloomberg. The results were driven by increased demand for power-generation equipment from artificial intelligence data centers.

Caterpillar posted adjusted earnings of $4.95 per share, beating analysts’ estimates of $4.51. Revenue grew 9.5% year over year to $17.64 billion. The company’s Energy and Transportation division led growth with a 17% increase in revenue, while Construction Industries sales rose 7% and Resource Industries gained 2%.

Sales of turbines and generators to data center developers were a key factor behind the jump in performance. Despite higher tariff costs, Caterpillar said stronger sales volumes offset those expenses. The company also raised its full-year sales outlook, expecting 2025 revenue to be modestly higher than in 2024.

The stock’s one-day gain marked its biggest since 2009, reflecting investor confidence in Caterpillar’s growing role as a supplier of energy equipment to meet surging AI infrastructure demand.

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