Caterpillar raised its annual revenue forecast after reporting stronger-than-expected quarterly earnings, helped by rising demand for power equipment tied to the artificial intelligence infrastructure boom.
The company’s shares climbed 5.3 percent in premarket trading following the results.
Caterpillar said growing investment in data centres and backup power systems has boosted its power and energy business over the past year as companies expand AI capabilities.
The machinery giant now expects full-year revenue growth in the low double-digit percentage range, up from its earlier forecast of around seven percent compounded annual growth.
Its adjusted profit per share rose to $5.54 during the January to March quarter, compared with $4.25 a year earlier.
Analysts surveyed by LSEG had expected earnings of $4.62 per share. Quarterly revenue increased 22 percent to $17.42 billion, beating analyst expectations of $16.61 billion.
Revenue from Caterpillar’s construction segment jumped 38 percent, while power and energy sales rose 22 percent.
Caterpillar also reduced its estimated tariff impact for the year to between $2.2 billion and $2.4 billion, down from its previous estimate of $2.6 billion.
The company said higher sales volumes and pricing gains were partly offset by $710 million in manufacturing costs linked largely to tariffs.
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