Eaton, a key supplier for AI data centers, reported a mixed third quarter with adjusted earnings per share rising 8% to $3.07, beating estimates by 2 cents. Revenue increased 10% to $6.99 billion, missing estimates by $0.09 billion. Organic sales grew 7%, falling short of the expected 8.6% increase. Shares dropped 9% to $352 but rebounded during the earnings call. Orders in key segments like Electrical Americas and Aerospace are accelerating, driven by strong data center demand. CEO Paulo Ruiz highlighted robust growth in the data center market, indicating confidence in sustained growth and value for shareholders. Eaton’s recent acquisition of Boyd Corporation’s thermal business positions the company well to capitalize on the growing demand for liquid cooling solutions in the AI data center market. The acquisition is expected to boost sales and EBITDA margin. Management reaffirmed full-year outlook and provided initial assumptions for various end-market dynamics in 2026.

Read more at CNBC: Eaton stock cuts post-earnings losses as investors reconsider knee-jerk selling