Eaton Posts Record Q3 Revenue of $8.95 Billion, Raises Full-Year Guidance as Data Center Demand Surges

Eaton Corporation reported record third-quarter 2026 sales of $8.95 billion, up 28% year over year and well ahead of the $8.51 billion Wall Street had expected. Adjusted earnings per share came in at a record $3.68, beating the $3.54 consensus estimate by about 4% and rising 20% from the year-ago quarter. GAAP EPS was $2.77, reflecting charges of $0.62 per share for intangible amortization and $0.30 per share tied to acquisitions and divestitures.

The standout performer was the Electrical Global segment, which surged 58% year over year to $2.73 billion against an estimate of $2.40 billion. Electrical Americas grew 22% to $4.17 billion, also ahead of forecasts, while its backlog expanded 33% year over year, contributing to a 46% overall jump in electrical backlog. Aerospace revenue of $1.20 billion rose 11% but missed the $1.24 billion estimate. Mobility grew 9% organically to $852 million. Segment margin expanded 30 basis points to 25.3%. Data center orders grew more than 100% on a rolling 12-month basis, and the company said record orders grew sequentially with backlog continuing to expand.

Eaton raised its full-year adjusted EPS guidance to $13.70-$13.80, up from its prior range of $13.40-$13.60 and above the $13.60 consensus. Full-year organic growth is now guided at 13%-15%. For the fourth quarter, the company sees adjusted EPS of $4.05-$4.15 and organic growth of 13%-15%. Free cash flow in the quarter was $1.03 billion, below the $1.31 billion estimate, even as operating cash flow reached $1.31 billion.

Eaton also announced an agreement to acquire COL Group for 810 million euros, or roughly $921 million, to strengthen its European power distribution capabilities for data centers. The company separately said its Mobility segment separation with Dana remains on track to close in the first four months of 2027. Shares rallied approximately 6%-7% on the day, outperforming peers, with Bernstein also arguing on Election Day that political risk to U.S. data center construction was smaller than markets had feared. The stock had fallen roughly 16% in the month before the report, and analysts at CNBC said the strong quarter should mark a bottom for shares.