CAT · 10-Q · 2026Q2 · Full report

End-Market Demand Trends

CATERPILLAR INC · 2026-08-05 · Importance 65 · Surprise 48 · In source text

Caterpillar reported strong demand across its three primary segments, with second-quarter 2026 sales increasing 24% year over year, primarily from $3.1 billion of higher sales volume and higher equipment sales to end users. Power & Energy demand was supported by data-center build-out related to cloud computing and generative AI, rising demand for reciprocating engines, turbines and turbine-related services, gas-compression applications, and aftermarket parts. Construction Industries continued to benefit from strong equipment order rates, infrastructure, heavy construction and data-center activity, while Resource Industries reported robust order rates and strong backlog growth driven by copper, gold, Heavy Construction, Quarry and Aggregates, mining, rail services and locomotive deliveries. For the six months ended June 30, 2026, dealer inventory increased $2.6 billion versus $200 million in the prior-year period, contributing to higher sales volume alongside end-user demand.

Key facts

• Construction Industries expects North America sales of equipment to end users to grow in 2026 compared with 2025 and expects dealer rental fleet loading growth in 2026 including additional Q3 2026 Major Projects fleet loading. source
• Company expects growth in Power Generation driven by data center build-out related to cloud computing and generative AI in 2026. source
• Resource Industries expects sales of equipment to end users to increase in 2026 compared to 2025, primarily driven by rising demand for copper and gold. source
• Rail services and locomotive deliveries are both anticipated to grow in 2026 compared to 2025. source
• Oil and Gas sales increased in reciprocating engines used in gas compression applications and in reciprocating engine aftermarket parts in Q2 2026; turbines and turbine-related services also increased. source

Impact estimates