Caterpillar Raises Outlook After Q3 Beat

Caterpillar beat third-quarter expectations, reporting adjusted EPS of $4.95 and revenue of about $17.6 billion. Much of the upside came from its Energy & Transportation unit—sales rose roughly 17% to about $7.2 billion—fueled by demand for power-generation equipment for AI data centers and supportive energy projects. Construction sales grew about 7%, and backlog hit a record $39.8 billion, up $11.2 billion year-over-year. The company now expects revenue to grow this year instead of the slight dip Wall Street had forecast. Shares jumped about 5% in early trading and are up strongly year-to-date, though GAAP net income declined year-over-year as higher costs offset revenue and the company remains exposed to trade/tariff and other macro risks.