Caterpillar's 172% Yearly Stock Surge Sparks Record High After 2.67GW AI Power Deal
CAT•Caterpillar's stock has surged 172% in the past year to close at $1,057 on June 25, lifting its trailing P/E to 52x on $20.37 earnings and 43x on projected 2026 earnings of $24.60. A 20-year, 2.67GW AI data center power deal drove a 6% jump to all-time highs.
1. Historic Valuation Surge
Over the past year, Caterpillar’s share price has leapt 172% from $388 to $1,057 as of June 25, 2026. This rally has expanded the trailing P/E multiple to 52x on trailing adjusted earnings of $20.37 and 43x on estimated 2026 earnings of $24.60, reflecting a structural re-rating.
2. 20-Year AI Data Center Power Agreement
Shares spiked over 6% to record highs after Caterpillar’s Solar Turbines unit secured a 20-year, 2.67-gigawatt co-located power contract in West Texas for a Chevron-Microsoft AI data center. The deal positions the company as a key AI infrastructure supplier alongside GE Vernova turbines.
3. Top-Line Growth and Future Earnings
Revenues climbed from $59.4 billion in 2022 to $70.76 billion over the trailing twelve months, with projections of $76.2 billion in 2026, $84.2 billion in 2027, and $93.8 billion by 2028. Consensus forecasts anticipate earnings of $30.11 in 2027 and $35.50 in 2028, shaping a pathway toward elevated valuations.
