Caterpillar (CAT) reported that its power and energy unit's revenue grew 17% year-over-year to over $8.2 billion last quarter, approaching the construction segment's sales of just over $8.3 billion. The power and energy unit's operating profit of over $2 billion also eclipsed construction's profit of just under $2 billion, underscoring its margin-widening pricing power. The company's order backlog reached $72 billion, growing 92% year-over-year for the three months ending in June, largely due to demand from AI data centers for power generation equipment. Analysts' consensus price target of $991.21 is over 20% above the current price, reflecting a forward P/E ratio of over 30, which is higher than Microsoft, Alphabet, and Nvidia.