Eaton Raises Growth Outlook Amid Strong Data Center Demand
Eaton Corporation has raised its organic growth outlook for 2026 to as much as 12%, driven by strong demand in the electrical market, record backlogs, and capacity improvements. The company is expanding its data center portfolio through strategic acquisitions like Fibrebond and Boyd, with data-center revenue rising about 65% year-over-year and orders increasing 85%. Eaton also raised its projected 2026 revenue for Boyd to $1.8 billion. Eaton's CEO Paulo Ruiz emphasized the company’s momentum in electrical markets and a growing focus on next-generation AI infrastructure, including solid-state transformers and liquid cooling solutions. The firm is preparing for significant growth through manufacturing expansions across multiple facilities and expects continued strength into 2027. Additionally, Eaton plans to separate its Mobility business via a Reverse Morris Trust transaction with Dana. The company has invested $13 billion in acquisitions over recent years, focusing on data centers and aerospace. While it will continue pursuing smaller bolt-on deals, Ruiz noted that large-scale acquisitions like Boyd are unlikely for the near future.
Topics: acquisitions AI infrastructure data centers organic growth outlook