Caterpillar Beats Q4 Earnings on AI Data Center Demand; Warns on Tariff Costs

Caterpillar (CAT-US) reported stronger-than-expected Q4 2025 earnings on January 29, 2026, driven by surging power equipment sales to AI data centers. Revenue rose 18% YoY to $19.1B; adjusted EPS hit $5.16, surpassing the $4.70 analyst consensus. The Energy & Transportation segment led growth, with sales up 23% to $9.4B and profits rising 25%, fueled by demand for backup generators and gas turbines from tech firms expanding data infrastructure. CAT’s market cap briefly topped $300B this month. Pre-market shares rose 1.15% to $653.00. However, tariffs weighed: Q4 operating profit fell 9% to $2.66B, with $1.03B in tariff-related costs. Full-year 2026 tariff impact is now projected at $2.6B, up from $1.6–1.75B. Construction and Resource Industries posted 15% and 13% sales growth, respectively. CEO Joe Creed cited record order visibility and broad-based market strength.