Caterpillar Stock Doubles to $1,057 with P/E at 52x After AI Deal
TEX•Caterpillar shares closed at $1,057 on June 25, 2026, marking a 172% gain from $388 a year ago and driving its trailing P/E multiple to 52x. Yesterday’s 6% jump followed a landmark 20-year, 2.67 GW AI data center power deal that includes Solar Turbines capacity.
1. Rapid Stock Appreciation and Valuation Re-rating
Caterpillar shares have climbed from $388 to $1,057 over the past year, reflecting a 172% surge that propelled its trailing P/E multiple to 52x based on adjusted 2025 earnings of $20.37. Consensus estimates for earnings rising to $30.11 in 2027 and $35.50 in 2028 underpin a potential path to a $2,000 share price.
2. Landmark AI Data Center Power Deal
A newly announced 20-year agreement commits Chevron to build a 2.67 GW co-located power facility in West Texas for Microsoft, with Caterpillar’s Solar Turbines supplying a significant portion of generation capacity. This deal underscores Caterpillar’s pivot toward critical AI infrastructure beyond its traditional heavy machinery roots.
3. Outperformance Against the S&P 500
Over the last four years, Caterpillar returned approximately 19% in 2022, 26% in 2023, 25% in 2024 and 60% in 2025, consistently outpacing the S&P 500’s respective returns of -19.4%, 24.2%, 23.3% and 16.3%. This multi-year compounding highlights the stock’s resilience and momentum through economic cycles.
4. Revenue Growth and Earnings Projections
Revenues expanded from $59.4 billion in 2022 to $70.76 billion over the trailing twelve months. Projections call for $76.2 billion in 2026, $84.2 billion in 2027 and $93.8 billion in 2028, representing a 23% revenue increase over the next two years driven by AI power contracts and domestic expansion.
