Caterpillar Reports Earnings After AI Infrastructure Stock Slide

Caterpillar Inc. is scheduled to report its second-quarter earnings on Tuesday. The announcement follows a volatile period for AI-linked industrial stocks, during which the company's shares lost nearly a quarter of their value last month. This decline occurred as investors pulled back from AI infrastructure stocks due to concerns regarding spending outlooks and a potential oversupply of power generation equipment.

Despite the recent volatility, the company's stock has increased 42% so far this year and currently trades at approximately 29 times its estimated earnings for the next 12 months. Investors are specifically monitoring the power equipment business, expecting revenue growth of 15% and an expansion of the adjusted operating margin for the second quarter.

Analysts indicate that the company's $63 billion backlog, recorded at the end of the first quarter, will be a critical factor in the report. Additional focus remains on the momentum within Caterpillar's construction and mining sectors.