Caterpillar lowers tariff outlook, increases revenue forecast.

Caterpillar said that this year's tariff costs will not be as high as initially expected. The equipment manufacturer currently predicts that tariff costs in 2026 will be between $2.2 billion and $2.4 billion, lower than the previous forecast of about $2.6 billion. The company also raised its full-year sales and revenue outlook, now expecting revenue growth to be in the low double-digit percentage range. Previously, the company had indicated that sales and revenue growth would approach the upper end of its 5% to 7% compound annual growth rate target. Following an increase in first-quarter profits and sales, Caterpillar's stock price rose 6% in premarket trading.