How 100‑year‑old Caterpillar went from making construction equipment to becoming an AI market darling

Fortune

by Sheryl Estrada

February 14, 2026

AI-Generated Deep Dive Summary

Caterpillar, the century-old industrial giant known for its iconic yellow construction equipment, has made a remarkable transformation into a key player in the booming artificial intelligence (AI) market. Once synonymous with mining and construction sites, the company is now capitalizing on the growing demand for power solutions to support AI-driven infrastructure. This shift has fueled unprecedented growth, with Caterpillar's stock reaching record highs and its market capitalization soaring from $270 billion at the end of 2025 to approximately $364 billion by February 2026. The company’s ability to adapt to emerging trends has positioned it as a standout performer in the Dow Jones Industrial Average, outpacing tech giants like Apple and Microsoft over the past year. Caterpillar's success stems from its strategic diversification into energy and power systems, particularly catering to the needs of data centers. These facilities require reliable and efficient power solutions, which Caterpillar provides through turbines, generator sets, and integrated microgrid systems that combine traditional energy sources with renewables and battery storage. This alignment with the AI and digital infrastructure boom has created a new revenue stream, driving strong demand across its construction, resource, and energy businesses. The company’s financial results reflect this growth, with full-year sales reaching a record $67.6 billion in 2025, up 4% from the previous year. Adjusted earnings per share (EPS) totaled $19.06, exceeding analyst expectations, and the company reported a record order backlog of $51 billion, a 70% increase year over year. This strong performance has been bolstered by Caterpillar’s focus on innovation and operational excellence under CEO Joseph Creed, who has emphasized a strategy centered on commercial excellence, advanced technology leadership, and workplace transformation. Caterpillar’s journey highlights the importance of adaptability in business. By leveraging its expertise in power systems to meet the demands of AI-driven industries, the company has not only diversified its portfolio but also capitalized on a rapidly growing market. Investors are confident that Caterpillar’s exposure to data centers and energy infrastructure is far from reaching its peak. With infrastructure spending in North America and global demand for AI technologies continuing to rise, Caterpillar is well-positioned to sustain its growth trajectory in the years ahead. This transformation underscores the potential for established industrial players to thrive in tech-driven markets by aligning their

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Originally published on Fortune on 2/14/2026