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Caterpillar and Cummins post record quarters on AI power demand
Caterpillar lifted full-year guidance, returning $2.2 billion to shareholders in the quarter and reducing its full-year tariff forecast to about $2.2 billion after IEEPA recoveries.
Yahoo Finance reports Caterpillar’s second-quarter 2026 results showed AI and data center power needs translating into higher demand for distributed power equipment. CMI CAT Global data center energy usage is expected to rise 26% by 2026 to 565 terawatt-hours, while overall data center power demand is projected to climb 27% to 132 gigawatts. Caterpillar said total sales increased 24% year-over-year to $20.5 billion, and adjusted earnings per share came in at $8.17 versus a $6.20 analyst average. Operating margins rose to 20.9% from 17.3% a year earlier as Construction Industries revenue jumped 35% to $8.3 billion, with North American demand up 50%, and Power & Energy revenue grew 17% to $8.2 billion.
The outlet also said Caterpillar saw tariff pressure ease during the quarter after recording a $710 million negative manufacturing cost hit largely tied to tariffs in Q1. Caterpillar reduced its full-year tariff forecast to about $2.2 billion, down from a prior $2.2 billion to $2.6 billion range, and reported $392 million in tariff recoveries under the International Emergency Economic Powers Act, or IEEPA.
Yahoo Finance adds that Cummins reported record performance alongside Caterpillar. Cummins posted revenue of $9.5 billion, GAAP net income of $932 million, an EBITDA margin of 17.5%, and diluted EPS of $6.73, supported by demand tied to power-driven needs and on-highway transport in North America.