Eaton’s strong quarter should mark a bottom for shares of the AI buildout winner

Eaton reported a record third-quarter revenue and raised its full-year outlook, strengthening the case that demand tied to data centre construction remains robust. The results could help steady its shares after months of weakness, although their near-term performance may reflect wider investor confidence in AI-related stocks.

Revenue rose 28% year on year to $8.95 billion, above the $8.51 billion analysts expected, while adjusted earnings per share climbed 20% to $3.68, beating the $3.54 forecast. Data centre revenue increased 65%, and the company said it had raised its organic growth and earnings guidance three times this year. Shares gained almost 7% in afternoon trading to about $391, still below an August closing high of roughly $460; aerospace revenue missed estimates, while operating profit exceeded them.