CAT | Weekly | Haru Insights

Caterpillar (CAT) reported record-breaking second-quarter 2026 results, posting $20.5 billion in revenue and adjusted EPS of $8.17—surpassing expectations and marking the first quarter in company history to exceed $20 billion in sales.
Michael Burry publicly added CAT to his short list, signaling contrarian skepticism toward the stock’s elevated valuation amid the AI-driven infrastructure boom, despite CAT’s strong fundamentals and structural growth trajectory.

CAT’s $72 billion backlog and dominance in power generation for hyperscale data centers confirm its irreplaceable role in the physical infrastructure of the AI era, transforming it from a cyclical industrial firm into a structural growth leader with long-term moat potential.
92% year-over-year backlog growth and record margins underscore CAT’s operational excellence, proving its ability to scale profitably in high-demand industrial sectors, especially those tied to AI-driven digital transformation.
A 94% surge in free cash flow and $2.2 billion in shareholder returns highlight CAT’s financial discipline, reinforcing its credibility as a resilient, high-quality industrial company capable of delivering both growth and value to investors.
The company’s ability to consistently exceed expectations in a volatile macro environment reflects exceptional execution, positioning CAT as a rare industrial play with both stability and explosive upside potential.
CAT’s leadership in AI infrastructure—specifically power generation—aligns perfectly with global tech expansion, ensuring it remains a critical enabler of data center buildouts, a trend that shows no signs of slowing.

Caterpillar Inc. (CAT)[Tv]