Is Caterpillar the Best Industrials Stock to Buy Right Now?

Caterpillar reported second-quarter 2026 revenue of $20.5 billion, up 24% year-over-year, fueled by surging AI infrastructure spending. The company's backlog hit a record $72 billion, underscoring multiyear demand visibility that analysts say justifies CAT's elevated valuation.

Earnings per share reached $7.77 in the quarter. Analysts now carry an average price target of $975, implying 21% upside from the current $803 level. The trailing price-to-earnings ratio has climbed above 35, well into premium territory, but the firm's exposure to data-center and AI-related construction projects has reduced traditional cyclical risk.

The backlog figure—nearly three-and-a-half times quarterly revenue—signals sustained order momentum. AI infrastructure build-out, including power generation and logistics facilities, has emerged as a structural tailwind beyond CAT's legacy mining and construction end markets.