Caterpillar Sees Strong 2026 Start as Data Center Power Demand Fuels Expansion

Caterpillar expects a strong start to 2026 , with mid- to high-teens revenue growth and demand improving across power generation, construction equipment and resource industries.

The company raised its 2030 revenue-growth target to 6%–9% above 2024 levels and plans to invest three times more in large-engine capacity than in 2024.

Data-center and energy demand are driving expansion , particularly for behind-the-meter natural-gas power systems.

Caterpillar has a strong multiyear backlog, with turbine orders extending into 2030, and is expanding turbine and large-engine production while exploring ways to repurpose existing facilities.

Construction rental activity and mining orders are also improving, with stronger demand for large mining trucks and autonomous equipment.

Caterpillar is simultaneously making digital tools, remote operation and autonomous features more accessible to boost customer productivity and safety.

Caterpillar NYSE: CAT Chairman and CEO Joe Creed said the company has started 2026 with strong demand across its three operating segments, supported by power-generation activity, construction equipment sales and improving orders in resource industries. Speaking at a Wells Fargo Securities event, Creed said Caterpillar raised its 2030 revenue target earlier this year to growth of 6% to 9% versus 2024 levels after continued demand discussions with customers. The company also increased planned investment in large-engine capacity to three times its 2024 level.

“We had a good year in 2025, but really off to a really amazing start to the year in the first half in 2026,” Creed said. He added that Caterpillar expects mid- to high-teens top-line growth, while operating profit after capital charge, or OPACC, has also increased strongly.

Creed said Caterpillar’s power and energy business continues to see strong backlog growth, with demand spanning power generation, oil and gas, natural-gas compression, mining and marine applications. The company is increasing production capacity for turbines and large reciprocating engines while also seeking to improve throughput from existing facilities.

Large-engine capacity additions have been running slightly ahead of plan, by roughly two to three months, according to Creed. Turbine capacity additions are proceeding according to plan. He cautioned that capacity growth will not follow a completely smooth path, citing the operational complexity of expanding factories and supply chains while production is running at high levels. Caterpillar is also examining ways to use its existing manufacturing footprint to add output more quickly. Caterpillar repurposed its Wamego facility for Solar Turbines packaging in 12 months and has resumed production of a 10-megawatt medium-speed engine for power-generation use. It is also considering whether a facility with locomotive-engine capacity could produce large Cat engines with relatively modest investment.

While investors have raised concerns that industry capacity additions could eventually outpace demand, Creed said customer behavior has not yet indicated a slowdown in power-generation needs. He described Caterpillar’s approach to adding capacity as measured and based on discussions with customers, including hyperscalers, data-center operators and oil-and-gas companies. “We have a really strong backlog into the next two years of line of sight, starting to take orde...