economy
December 31, 2025
Eaton's stock sat out the AI boom this year. Here's what can spark a rally in 2026
The electrical equipment supplier's results this year have failed to meet Wall Street's lofty expectations.
TL;DR
- Eaton's stock has underperformed in 2025, with a year-to-date decline of approximately 3%.
- The company's Electrical Americas division, which supplies equipment for data centers, has seen increased revenue contribution due to AI spending.
- Eaton's data center orders were up 70% year-over-year in Q3 2025, with revenue up 40%.
- The acquisition of Boyd Thermal for $9.5 billion is expected to enhance Eaton's capabilities in the data center market, particularly in liquid cooling.
- Eaton has addressed headwinds such as transformer shortages and capacity expansion through increased investment.
- President Trump's tariffs, which previously weighed on sentiment, are expected to ease.
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