By Nandan Mandayam
Aug 4 (Reuters) - Caterpillar raised its annual revenue growth forecast after beating second-quarter profit estimates on Tuesday, benefiting from a buildout of AI data centers that has spurred demand for its power-generation and construction equipment.
Shares of the company, which rose as much as 12% in early trading, were last up around 7%, on track for their best day in more than three months if gains hold. Caterpillar's stock jump also helped fuel a 1.8% rise in the blue-chip benchmark Dow Jones industrial index.
The company cut its full-year tariff costs forecast to around $2.2 billion from the previously expected $2.2 billion to $2.6 billion.
Over the last few quarters, the equipment giant has seen a surge in orders for construction equipment amid a nationwide buildout of data centers as well as the backup power equipment needed for such buildings.
#billion #forecast
Aug 4 (Reuters) - Caterpillar raised its annual revenue growth forecast after beating second-quarter profit estimates on Tuesday, benefiting from a buildout of AI data centers that has spurred demand for its power-generation and construction equipment.
Shares of the company, which rose as much as 12% in early trading, were last up around 7%, on track for their best day in more than three months if gains hold. Caterpillar's stock jump also helped fuel a 1.8% rise in the blue-chip benchmark Dow Jones industrial index.
The company cut its full-year tariff costs forecast to around $2.2 billion from the previously expected $2.2 billion to $2.6 billion.
Over the last few quarters, the equipment giant has seen a surge in orders for construction equipment amid a nationwide buildout of data centers as well as the backup power equipment needed for such buildings.
#billion #forecast
3 months ago
