From CNBC: 2025-05-02 15:45:00

Eaton reported a strong quarter with earnings per share rising over 33% to $2.72 and revenue increasing 7.3% to $6.38 billion, beating analyst estimates. Organic sales grew 9%, outperforming expectations. The company is involved in key trends like electrification and infrastructure, with exposure to generative AI through data center solutions.

Despite the positive results, Eaton’s stock has struggled to reach its 2025 high of $371. With ties to AI trade, the company is closely monitored. Three out of five segments posted better-than-expected sales, while orders have slowed due to tariff uncertainty. Management remains optimistic, aiming to offset tariff impacts through strategic adjustments.

Eaton raised its full-year organic sales growth guidance to 7.5%-9.5% and reaffirmed EPS guidance. Second-quarter adjusted EPS fell short of estimates due to tariff costs, but management remains confident in the outlook. The company plans to navigate tariffs through cost management, supply chain optimization, and commercial actions to maintain a competitive advantage in the market.



Read more at CNBC:: Industrial stock tied to AI reports strong quarter. We like it, for now