Caterpillar (CAT) raised its full-year revenue outlook on Tuesday as the company generated more than $20 billion in sales for the first time in a single quarter.
The heavy equipment manufacturer now anticipates revenue to rise by mid-to-high teens for 2026, according to an earnings presentation, compared with the prior guidance for low-double-digit growth. The consensus on FactSet is for sales of $77.01 billion, reflecting a nearly 14% annual jump.
The stock rose 10% in Tuesday trade.
For the three months through June, the company's adjusted EPS jumped to $8.17 from $4.72, surpassing Wall Street's view for $6.22. Sales advanced 24% to $20.54 billion, topping the average analyst estimate of $19.34 billion, driven by volume and pricing gains.
"This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter," Chief Executive Joe Creed said in a statement. "Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments."
Sales in the power and energy segment increased 17% to $8.24 billion, while the construction industries business soared 35% to $8.35 billion. Resource industries gained 20%.
The company's order backlog rose $34.6 billion year on year to a record $72.1 billion, the presentation showed.
Last month, Truist Securities said major companies in the machinery, infrastructure services and multi-industry domains were set to benefit from a continued expansion in the US manufacturing sector and strong demand trends.
The brokerage expected Caterpillar to deliver another strong quarter, driven by strength in its power and construction businesses, as well as a reacceleration in its oil and gas and mining segments.
The Institute for Supply Management and S&P Global (SPGI) said Monday that the manufacturing sector in the world's largest economy continued to grow in July.
Caterpillar forecasts tariff costs of $2.2 billion this year, excluding any refunds, compared with expenses between $2.2 billion and $2.4 billion previously expected.
Caterpillar expects "strong" sales growth in the third quarter, while the Street is looking for $19.68 billion.
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