CAT stock today: Caterpillar Inc share price rises after blockbuster first-quarter profit report. Should you buy now?

CAT stock on NSE is surging in pre-market on Thursday. Caterpillar Inc share price rose 6 per cent after the construction and mining equipment maker reported higher first-quarter profit. CAT shares closed in red yesterday.

Caterpillar reported a higher first-quarter profit ​on Thursday, led by strong demand for its power generation and construction equipment. The company, seen as a ​bellwether for the global industrial economy, reported an adjusted ​per-share profit of $5.54 in the January-March period, compared with $4.25 a year earlier.

Over the ​last year, Caterpillar's power ⁠and energy ‌segment has seen a windfall ​from ​data center clients seeking power generation ⁠and backup equipment to fuel surging ​use of artificial intelligence.


The company's overall ​revenue rose 22 per cent to $17.42 billion. Its core construction segment revenue jumped 38 per cent, while the power and energy segment revenue was up 22 per cent.

Analysts had noted in ‌a pre-earnings note that the company's earnings would have benefited from ​dealers building ​fresh inventory of ⁠its construction equipment and strong execution of its pending AI orders.

Caterpillar said its construction equipment ​segment was aided by higher sales volume and better pricing, but partly offset by higher manufacturing costs tied to tariff costs.

Its first-quarter adjusted profit per share rose to $5.54 in the January-March period, compared with $4.25 a year earlier, beating analysts' expectation of $4.62 per share, according to data compiled by LSEG.

Revenue from its core construction segment jumped 38 per cent, while the power and energy segment revenue was up 22 per cent. ​Both segments were ​helped by strong ⁠demand from customers in North America, Caterpillar's biggest market.

Caterpillar said benefits from higher sales volume and better pricing were partly offset by unfavorable manufacturing costs ​of $710 million, largely tied to higher tariffs.

Industrial firms in the U.S. were among the hardest-hit companies by Trump's U.S. tariffs, which raised costs of imported raw materials and production machinery, while the broader economy took a hit from delayed business activity and sluggish corporate spending.