Caterpillar’s Power & Energy Revenue Jumps 23%, BofA Raises Target to $825
Caterpillar ended 2025 with a record $67.6 billion in revenue, up 4%, as its Power & Energy unit generated $9.4 billion, soaring 23% year-over-year. Bank of America raised its target to $825 from $735 and Jim Cramer says hedge funds are snapping up Caterpillar power products for data center buildouts.
1. Record Annual Revenue and Growth
Caterpillar reported $67.6 billion in revenue for 2025, marking a 4% increase and setting a new company record. This performance was driven by strong demand across its business segments.
2. Power & Energy Segment Performance
The Power & Energy division delivered $9.4 billion in sales, up 23% year-over-year, reflecting accelerating demand for turbines and power generation equipment.
3. Bank of America Raises Price Target
Following the robust results, Bank of America increased its price target to $825 from $735 and maintained a Buy rating, citing broadening market demand.
4. Hedge Funds Driving Power Demand
Jim Cramer highlighted that hedge funds are purchasing Caterpillar power products to secure energy supply for data center buildouts, helping boost the company’s quarterly top line.