Eaton CEO Outlines Strong Growth Outlook for Data Center Business
At Morgan Stanley's Laguna Conference on September 16, Eaton Corporation (ETN) CEO Paulo Ruiz presented a stronger-than-expected outlook for the company’s data center business. The comments led to increased investor confidence and prompted several banks to raise their price targets for ETN shares. Eaton is playing an important role in building AI infrastructure by supplying electrical equipment such as switchgear, transformers, and cooling systems through its Boyd Thermal acquisition. Eaton's stock rose 7.9% over five trading days following Ruiz’s presentation, with the company now up nearly 30% for the year. The CEO highlighted a projected $10 billion in revenue growth from 2024 to 2026 and noted that data center orders have increased by about 85%. Additionally, Eaton's project pipeline has grown to 342 gigawatts globally. Ruiz also emphasized the company’s strategy for simultaneous top-line growth and margin expansion. The second quarter of 2026 saw record revenue at $8.53 billion with adjusted earnings per share reaching $3.15, exceeding guidance.
Tickers: $ETN
Topics: AI infrastructure CEO strategy data center demand revenue growth