Caterpillar Inc. (CAT) shares surged over 60% in 2026, significantly outpacing the S&P 500. The company’s strong performance is bolstered by its involvement in the artificial intelligence (AI) sector, particularly due to growing demand for power products used in data centers. Caterpillar reported sales of $17.4 billion in its latest quarter, a 22% increase year-over-year, with a record backlog contributing to this growth.
The Power and Energy segment drove notable results, achieving sales of $7.0 billion, up over 20% from the previous year, while Power Generation applications experienced a 41% sales increase. The company’s commitment to shareholders is evident through $5.7 billion allocated for share repurchases and dividends. Caterpillar’s forward earnings multiple stands at 34.1X, well above its five-year median of 16.4X, reflecting the company’s strong growth trajectory, with EPS estimates suggesting a 30% increase for FY26.
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