Caterpillar Reports 17% Sales Growth in Q3 Amid Rising Data Center Power Demand
Caterpillar (CAT) reported third-quarter sales of $20.7 billion, a 17% increase compared to the previous year, driven largely by a 30% surge in power generation sales totaling $3.4 billion. This growth was fueled by high demand for power equipment serving data centers. Despite these strong top-line figures and an improved operating profit margin of 20.4%, Caterpillar shares fell approximately 8% during regular trading. The market reaction appears driven by several underlying concerns, including the absence of a full-year financial outlook and the inclusion of $128 million in non-recurring tariff recoveries within the operating profit. Additionally, while sales in Resource Industries grew, margins slipped, and much of that growth was attributed to dealer inventory adjustments rather than direct end-user demand.