Caterpillar reports higher quarterly profit, revenue on AI-fueled power equipment demand

Jan 29 (Reuters) - Caterpillar reported a rise in fourth-quarter revenue and profit ​on Thursday, driven by sustained ‌demand for its power-generation equipment amid a rapid ‌build-out of data centers.

The world's largest construction and mining equipment maker reported an adjusted profit of $5.16 per share for the quarter ⁠ended December ‌31, up from $5.14 per share a year earlier. Revenue rose to $19.1 ‍billion from $16.2 billion.

The surge in artificial intelligence adoption is driving demand for computing power ​and pushing tech heavyweights to invest ‌billions in new data-center infrastructure, boosting demand for Caterpillar's back-up power generators.

The company, seen as a bellwether for the global industrial economy, has also raised prices ⁠on its industrial equipment, ​supporting margins and ​countering a softness from a recovering construction equipment business.

Analysts expect the construction ‍segment to ⁠return to growth in 2026, supported by stronger dealer orders, stabilizing ⁠non-residential construction activity, and increased rental fleet demand.

(Reporting ‌by Abhinav Parmar in Bengaluru; Editing ‌by Sriraj Kalluvila)