The Gold Rush era taught us that sometimes, the most lucrative opportunities lie not in directly chasing wealth but in supporting those who do. This age-old wisdom is exemplified today by Caterpillar, a leading manufacturer of heavy-duty mining and earthmoving equipment. As the company navigates the current AI surge, it is experiencing remarkable stock performance and robust revenue growth.
Caterpillar’s stock has recently surged to unprecedented heights, driving its market valuation from $270 billion at the end of 2025 to about $364 billion by February 13, 2026. Over the last year, the stock price has more than doubled to an all-time peak of $775. This impressive performance has outstripped major tech players such as Apple (up 8%) and Microsoft (up around 1%). Investors remain optimistic about Caterpillar’s expanding footprint in data centers, energy infrastructure, and AI-related markets, viewing this momentum as far from over. Notably, over the last year, Caterpillar has achieved the top performance rank within the Dow.
Famed for its recognizable bright yellow construction vehicles, Caterpillar has diversified its offerings to encompass energy and power systems, as well as resource and mining equipment. CEO Joseph Creed, who has been with the company since 1997 and assumed various roles, including CFO, was appointed COO in 2023 and took on the CEO position in May 2025.
Creed outlined the company’s growth strategy during a January 29 earnings call, noting that it is oriented around three key pillars: commercial excellence, leadership in advanced technology, and transformative work practices, all grounded in operational excellence.
Caterpillar, ranked No. 64 on the Fortune 500, released fourth-quarter and full-year results that surpassed Wall Street’s expectations. It achieved record sales and revenue of $67.6 billion, the highest in its history, driven by strong demand across construction, resource, and energy sectors. The adjusted earnings per share (EPS) for the year totaled $19.06, with fourth-quarter adjusted EPS reaching about $5.16, exceeding analysts’ mid-$4 predictions.
Furthermore, the company boasted a record order backlog of $51 billion—an increase of roughly 70% year over year—indicating solid demand visibility as it steps into 2026. Total full-year sales grew by 4% compared to the previous year, complementing a robust free cash flow that further improved its financial position.
“Caterpillar shares have seen a significant rise over the past year as investors consider the company’s vital role in the growing demand for artificial intelligence,” stated Morningstar equity analyst George Maglares in a recent commentary.
Instead of developing AI technology directly, Caterpillar provides essential equipment that underpins AI-driven infrastructures. This includes turbines for primary power at data centers, generator sets for backup power, and integrated microgrid systems that merge traditional energy sources with renewables and battery storage, as reported by Fortune’s Jordan Blum.
Maglares pointed out that Caterpillar’s construction and resource sectors are both experiencing positive cyclical trends. As the company wrapped up the last year with double-digit growth across its primary segments, it suggests substantial momentum heading into 2026. Management has projected mid-single-digit revenue growth of approximately 5% to 7% for the ongoing year, a conservative estimate considering the current demand trends.
Infrastructure spending in North America remains a crucial driver, particularly as both public-sector initiatives and private investments in energy and digital infrastructure continue to evolve. In light of these factors, Morningstar has recently adjusted its fair-value estimate for Caterpillar shares to the low-$600 range, citing better-than-expected guidance and improving demand from end markets.
The composition of Caterpillar’s revenue is also indicative of its shift towards energy and power solutions. In 2024, its energy and transportation segment generated around $28.8 billion in revenue, surpassing the $25.5 billion from the traditional construction business for the first time, as highlighted by Fortune.
Celebrating its 100th anniversary last year, Caterpillar remains fundamentally influenced by the cycles of the global economy. However, for the moment, it stands as a remarkable example of a company thriving in a landscape that shows no signs of slowing down.
