Caterpillar Raises Outlook After Q3 Beat

Caterpillar topped Wall Street estimates in Q3 with adjusted EPS of $4.95 and revenue of about $17.6 billion, and raised its full-year outlook to expect revenue growth rather than the slight dip analysts had forecast. Much of the upside came from the Energy & Transportation unit, whose sales rose roughly 17% to about $7.2 billion on strong demand for turbines, generators and backup power systems used to power AI data centers and energy projects. UBS projects that backup-generator revenue could nearly double over the next three years, and analysts say Caterpillar has emerged as a key supplier in that market. Construction revenue grew about 7%, backlog hit a record $39.8 billion, and shares jumped roughly 5–5.7% in premarket trading. Still, GAAP net income fell year over year as higher costs offset revenue gains, and the company remains exposed to economic cycles and trade and tariff headwinds.