Caterpillar Inc., the Irving-based heavy machinery manufacturer, reported record quarterly revenue on Tuesday, driven in large part by demand from data centers across the United States. For the first time in its history, the company exceeded $20 billion in sales and revenues in a single quarter, underscoring strong performance in its power and energy division.
The company posted $20.5 billion in sales and revenues for the second quarter of 2026, representing a 24% increase compared to the same period last year. Profit margins also improved significantly, rising to 20.9% from 17.3% in the second quarter of 2025. Caterpillar reported a total cash balance of $6.7 billion. The robust financial results surpassed analysts’ earnings expectations, leading to a notable increase in Caterpillar’s stock price. Shares were trading near $877 on Tuesday morning, more than doubling over the past year, though still below the recent peak of over $1,000 set last month.
Much of the growth was attributed to the company’s power and energy segment, which generated approximately $8.2 billion in sales—about $1.2 billion higher than the second quarter of 2025. This division benefits heavily from the sale of large engines and turbines predominantly used to power data centers, a segment where Caterpillar has increased its footprint significantly.
Caterpillar plays a key role not only in supplying equipment but also in integrating data centers with the electric grid. The company’s website highlights several recent agreements, including a multi-year contract with Hunt Energy aimed at powering data centers throughout North America. Caterpillar has also secured deals linked to projects in Utah, West Virginia, and a major Microsoft data center development in West Texas.
The company’s surge comes amid growing tension over data center expansion, particularly in Texas. These facilities, known for their high energy consumption and noise, have sparked community backlash despite the economic benefits they bring. In Red Oak, a northern Dallas-Fort Worth community branding itself as a data center hub, controversy has intensified. On Monday, Texas Governor Greg Abbott announced a moratorium on new data center approvals statewide pending an audit, marking a shift from his earlier support for rapid data center growth as part of a broader strategy to position Texas as an artificial intelligence capital.
“Our top priority is to protect Texans’ safety and quality of life,” Abbott stated in the announcement.
In addition to its strong financial showing, Caterpillar recently began a multimillion-dollar expansion of its Irving headquarters, reinforcing its status as one of the largest employers and corporate presences in the North Texas region.