(This story was updated to accurately reflect the most current information.)
Caterpillar is continuing to absorb large tariff costs but does expect the impact of on its bottom line to be slightly lower than expected in 2026, according to CEO Joe Creed.
Creed, who took over as CEO of Caterpillar last year, spoke with investors Thursday morning on an earnings call and said while the company is still facing tariff headwinds, the anticipated impact of tariffs on the Texas-based company will be lower than projected in 2026.
Caterpillar is expecting to take a financial hit from the Trump administration’s tariffs of $2.2 to $2.4 billion in 2026, coming in lower than the anticipated $2.6 billion toll it estimated for the year.
Despite the large impact from tariffs, Caterpillar maintains strong financial numbers as it continues to leverage sales and growth from the demand for artificial intelligence data centers, Creed told investors.
Caterpillar’s first quarter sales and revenues totaled $17.4 billion, up 22% from the first quarter of 2025. Turbine and reciprocating engines needed to power AI data centers are significantly driving Caterpillar’s growth, according to the earnings call.
Creed told investors there was “strong demand” for the turbines and engines that are needed to power AI data centers.
On Thursday’s call, Caterpillar also introduced Kyle Epley as its new CFO. He is replacing Andrew Bonfield, who is retiring. Epley had previously served as Caterpillar’s senior vice president of global finance services.
This article originally appeared on Journal Star: Caterpillar expecting significant tariff costs again for 2026
Reporting by JJ Bullock, Peoria Journal Star / Journal Star
USA TODAY Network via Reuters Connect
