Caterpillar posted strong quarterly results with its Construction Industries segment up 38% and Power & Energy sales climbing 22% year-over-year, both beating Wall Street expectations. North America delivered double-digit growth, and management raised its full-year revenue outlook, citing surging demand for power equipment tied to AI data center buildout. The one blemish: operating profit margins slipped to 17.7%, squeezed by tariff-related manufacturing costs across all three business segments.
Caterpillar is a bellwether for industrial and infrastructure spending — when it raises guidance, it signals real capital is flowing into construction and energy projects. The AI-driven Power & Energy surge is a concrete data point linking heavy machinery demand to the tech investment cycle, which broadens the investable thesis beyond pure software plays. Margin compression from tariffs is worth watching, as it could cap how much of the revenue growth drops to the bottom line.
Caterpillar's next earnings report (Q3 2025, expected late October 2025). July 30: Federal Reserve rate decision, which affects borrowing costs for construction projects. Ongoing: U.S. tariff policy updates, particularly on steel and aluminum inputs.
Full analysis · Subscribers
The deep dive (bull case, bear case, and the data point that decides which side wins), the cause-and-effect chain behind the move, plain-English explainers for every block.
Aggregated reads dozens of sources in five languages and turns the day into plain-English cards like this one.
Educational analysis of public information, not investment advice. Report an error · Corrections policy
← Today's brief