Caterpillar reported fourth-quarter revenue of $19.133 billion, an 18% increase year-over-year, driven by broad strength across its Construction Industries, Resource Industries and Power & Energy segments. The company delivered adjusted earnings of $5.16 per share, surpassing consensus estimates by $0.50 and up slightly from $5.14 a year earlier. Full-year revenue reached $67.6 billion, marking a new corporate high, while full-year adjusted earnings per share totaled $18.81 despite headwinds.

Despite record top-line results, Caterpillar’s profit margins contracted as higher tariffs and one-time restructuring costs eroded profitability. The company forecast a $2.6 billion tariff headwind in 2026, a notable increase from the current year’s impact, and acknowledged that ongoing supply-chain adjustments will pressure margins through at least the first half of the next fiscal year. Restructuring initiatives, aimed at streamlining manufacturing operations, are expected to incur an additional $300 million in charges over the coming quarters.

Order backlog swelled to a new record, rising by roughly 25% year-over-year to approximately $73 billion as hyperscale data center operators accelerated purchases of power-generation and fast-response equipment. Power-and-energy segment sales now account for more than half of total backlog, outstripping construction-machinery orders for the first time in company history. Rapid build-outs of AI data centers, which require reliable continuous-duty power and battery storage integration, have become a key growth driver.

Caterpillar joined American Intelligence & Power Corporation and Boyd CAT in a strategic alliance to deploy 2 gigawatts of natural-gas generator sets for the Monarch Compute Campus, scheduled for delivery between September 2026 and August 2027. The initial phase will combine fast-start gensets capable of ramping from zero to full load in seven seconds with battery energy-storage systems, supporting AI workloads characterized by extreme load variability. The project underscores Caterpillar’s positioning as a core infrastructure provider for hyperscale and enterprise data centers, with vendor financing available through Caterpillar Financial to streamline deployment.