New York, January 30, 2026, 12:08 PM EST — Regular session
Caterpillar’s (CAT.N) shares slipped 1.1% to $658.00 in midday trading Friday, following a close of $665.24 on Thursday. During the session, the stock fluctuated between $653.03 and $677.47.
The announcement followed Caterpillar Inc’s report of $19.1 billion in fourth-quarter sales and an adjusted profit of $5.16 per share. CEO Joe Creed highlighted the company’s centennial year as a milestone, with the highest annual sales and revenues ever recorded, including that single-quarter $19.1 billion mark. Operating profit margin dropped to 13.9% from 18.0% the previous year. (Caterpillar)
Why it matters now: Caterpillar is often seen as a barometer for the industrial economy, but lately the focus has shifted to power equipment for data centers. Creed noted that orders are climbing for “prime power” systems — large generators built to run nonstop — as data-center clients boost their on-site electricity capacity, Reuters reported. The company also flagged that tariff-related expenses could soar to around $2.6 billion in 2026, up from $1.8 billion last year, the report added. “Better-than-expected sales across business segments were hindered by tariff headwinds, limiting the margin expansion for the quarter,” Jefferies analyst Stephen Volkmann said. (Reuters)
Power and energy sales climbed 23% to $9.4 billion this quarter, surpassing Caterpillar’s construction equipment unit, which grew 15% to $6.93 billion, according to the Wall Street Journal. Sales in resource industries increased 13% to $3.35 billion, driven by strong demand for generators linked to AI data centers, the report added. (The Wall Street Journal)
Friday’s trading ended with investors still grappling with one key question: can the power sector keep driving gains as the broader cycle wobbles? A solid beat offers some relief, but rising costs tend to catch up down the line.
Tariffs are import taxes. For manufacturers with global supply chains, they can quickly erode margins if pricing and product mix fail to keep pace.
Traders are focusing less on this quarter’s headline and more on upcoming data around orders and pricing. Dealer activity will also be key — as independent sellers, their inventory shifts can skew quarterly sales figures.
A downside risk remains. Should data-center projects delay or clients push out delivery timelines, demand for generators might drop right as construction and mining activity falters, reducing the buffer against rising trade costs.
Looking ahead, the key macro release is the U.S. Employment Situation report for January, set for Friday, Feb. 6. Cyclicals such as Caterpillar could see swings if the jobs data defies expectations, potentially altering rate forecasts and sentiment on heavy-equipment demand. (Bls)
