Caterpillar Shares Drop 9% After Modest Third-Quarter Earnings

Caterpillar Inc. shares fell 9% in early trading on Thursday following the release of third-quarter financial results that modestly beat analyst expectations. The company reported adjusted earnings of $7.20 per share and revenue of $20.68 billion, slightly surpassing average estimates of $7.10 per share and $20.65 billion.

The narrow margin of the beat triggered investor anxiety regarding the sustainability of the rally in AI-related stocks. This reaction is tied to the company's largest business unit, which produces the power-generation equipment essential for data center operations.