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Investing.com - Caterpillar (NYSE:CAT), a prominent player in the machinery industry with a market capitalization of $196 billion, has secured a significant agreement to supply power generation equipment for a massive data center project in Utah, the company announced Thursday.
The heavy equipment manufacturer will provide 2.5MW G3520K generator sets for prime power at a planned 4GW data center being developed by Joule Capital Partners (WA:CPAP), with construction set to begin in 2026.
The comprehensive energy solution includes 1.1 GW of battery storage, backup generators, controls, switchgear, inverters, and CCHP (Combined Cooling, Heat and Power) systems, with Caterpillar dealer Wheeler Machinery handling the transaction.
Bernstein SocGen Group maintained its Market Perform rating on Caterpillar stock with a $447.00 price target following the announcement.
The deal represents Caterpillar’s expanding role in the prime power space beyond its traditional backup generation business, as data center developers increasingly turn to distributed generation solutions due to time-to-market pressures and rising costs of utility-scale power plants. For deeper insights into Caterpillar’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Caterpillar reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company posted an adjusted earnings per share (EPS) of $4.72, which was below the consensus estimate of $4.90. However, Caterpillar’s revenue for the quarter reached $16.6 billion, exceeding market expectations of $16.27 billion. Despite the revenue beat, the company’s EBIT margin fell to 17.6%, which was below the anticipated 18.3%.
Following these results, several financial firms adjusted their outlooks on Caterpillar. Bernstein raised its price target to $447, citing a rebound in demand and solid retail orders. JPMorgan increased its price target to $520, highlighting a strong backlog despite the mixed earnings results. BofA Securities also raised its price target to $495, maintaining a positive outlook for the company. These recent developments reflect analysts’ varied assessments of Caterpillar’s financial health and future prospects.
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