Caterpillar reported a strong Q2 2026 with record sales and revenues of $20.5 billion, beating expectations and driving a raised full-year outlook. Strength was broad-based across all three segments, with particular momentum in Power & Energy (data-center demand) and Construction (rental and major projects). Management also detailed strategic capacity expansions and M&A, including restarting a 10-MW Genset platform and acquiring mining-tech firm Skycatch. Record Q2 2026 sales of $20.5B, up 24% YoY; raised FY2026 revenue growth guidance to mid-to-high teens.
Caterpillar reported a strong Q2 2026 with record sales and revenues of $20.5 billion, beating expectations and driving a raised full-year outlook. Strength was broad-based across all three segments, with particular momentum in Power & Energy (data-center demand) and Construction (rental and major projects). Management also detailed strategic capacity expansions and M&A, including restarting a 10-MW Genset platform and acquiring mining-tech firm Skycatch. Record Q2 2026 sales of $20.5B, up 24% YoY; raised FY2026 revenue growth guidance to mid-to-high teens.
Management expressed confidence in strong demand across all segments, highlighted record backlog and raised full-year guidance, while acknowledging tariff and geopolitical uncertainties.
Record Q2 2026 sales of $20.5B, up 24% YoY; raised FY2026 revenue growth guidance to mid-to-high teens.
Reported gross margin was 37.78%, reinforcing the quarter's better-than-guided profitability.
Guidance · revenue to 16%
Management noted that data center demand for power generation remains strong, with orders extending into 2030. They also mentioned that AI-related cloud computing and generative AI are driving energy demand, and they have not seen customers back off from their demand.
Record backlog of $72 billion, up 92% year-over-year. Management expressed confidence in strong demand across all segments, highlighted record backlog and raised full-year guidance, while acknowledging tariff and geopolitical uncertainties.
Caterpillar is investing in capacity expansion, with 2026 capex expected to be approximately $3.5 billion. They are repurposing existing facilities, like in Wamego, Kansas, to bring capacity online faster and are resuming production of a 10-megawatt gas reciprocating engine platform to add 1.5 gigawatts of capacity.
Management expressed confidence in strong demand across all segments, highlighted record backlog and raised full-year guidance, while acknowledging tariff and geopolitical uncertainties.
“we're excited to resume production of our 10-megawatt medium-speed gas reciprocating engine platform... and now without significant investment, we're able to restart production by leveraging our existing supply base along with our internal…”
“And finally, resource industries completed the acquisition of Skycatch in July, further enhancing our capabilities following the recent acquisition of RPM Global. Skycatch's technology captures high-frequency, high-precision, large-scale s…”
“Power and Energy customers continue planning with us by sharing their long-term forecasts and some are placing orders as far out as 2030. Currently, 59% of our $72 billion backlog is expected to be delivered over the next 12 months.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $3.5B | $3.5B | MAINTAINED |
| Free cash flow | FY2027 | $10B–$15B | $12.5B | RAISED |
| Revenue | FY2026 | 15%–17% | 16% | RAISED |
Caterpillar restarted production of its 10-megawatt medium-speed gas reciprocating engine platform, part of the former MAK product line, and will bring about 1.5 GW of capacity online with first shipments in Q4 2026. This capacity sits between CAT's high-speed gas engines and industrial gas turbines, allowing it to target 'prime power' data-center applications and broaden its product portfolio.