Caterpillar, Vertiv Post 22% and 30% Q1 Growth as AI Data Center Spending Surges
Updated
Updated · The Motley Fool · Jun 20
Caterpillar, Vertiv Post 22% and 30% Q1 Growth as AI Data Center Spending Surges
2 articles · Updated · The Motley Fool · Jun 20
Summary
Caterpillar’s first-quarter revenue rose 22% to $17.4 billion, while Vertiv’s net sales climbed 30% to $2.65 billion as both companies benefited from AI-driven data center build-outs.
AI demand is lifting orders for the infrastructure behind those facilities—Caterpillar’s engines and generator sets for primary and backup power, and Vertiv’s liquid-cooling, critical-power and other electrical equipment.
Caterpillar’s power and energy division grew 21% to $7 billion, helping prompt a higher 2030 outlook that now targets power-generation sales at triple 2024 levels, up from a prior goal of doubling.
Vertiv also raised guidance again, projecting 2026 revenue of $13.5 billion to $14 billion and adjusted EPS of $6.30 to $6.40 after free cash flow jumped 147% to $653 million and net income more than doubled to $390 million.
The results underscore how AI’s capital boom is spreading beyond chipmakers to industrial suppliers that keep new and retrofitted data centers powered and cooled.
Beyond power and cooling, what overlooked industry is poised to be the next big winner in the AI infrastructure gold rush?
As AI's energy thirst drives a boom in fossil-fuel generators, how can this growth be reconciled with global climate targets?
With data centers building their own power plants, is the era of a centralized public utility grid coming to an end?
Q1 2026 Report: Vertiv and Caterpillar Capitalize on Explosive AI Data Center Growth
Overview
In Q1 2026, Vertiv and Caterpillar achieved outstanding growth, driven by the booming demand for AI infrastructure and data centers. Vertiv’s strong financial results, including a major increase in cash flow and robust liquidity, reflect the industry-wide surge in AI deployments that require advanced cooling and power solutions. Caterpillar, traditionally a cyclical equipment provider, saw record demand for its power generation assets, especially from data center clients, prompting a significant upgrade to its growth outlook. Both companies are strategically positioned to benefit from the AI revolution, as their essential infrastructure solutions enable the rapid expansion and operation of high-density, energy-intensive AI data centers.