Eaton reported record revenue for the third quarter and raised its full-year outlook, as demand for electrical equipment used in data centers continued to grow. Revenue for the quarter ended September 30 rose 28% year over year to $8.95 billion, above the $8.51 billion analysts expected. Adjusted earnings per share increased 20% to $3.68, beating the $3.54 consensus estimate cited in the report.

Data center revenue grew 65% year over year. Across Eaton’s Electrical Americas and Electrical Global businesses, organic growth reached 24%, while their combined backlog increased 46% to more than $20 billion. The company said electrical-sector data center orders had grown by more than 100% on a rolling 12-month basis.

Eaton raised its full-year organic growth forecast to a range of 13% to 15%, from 11% to 13%, and lifted its adjusted earnings-per-share outlook to $13.70–$13.80 from $13.40–$13.60. Its forecast for the current quarter also exceeded expectations for organic growth and adjusted earnings per share, although the midpoint of its projected segment margin was slightly below the estimate cited in the report.

The company said it expects strong double-digit growth in data centers and distributed IT, as well as commercial aerospace, in 2027. Light vehicles and residential markets are expected to be flat. Eaton also said announced data center projects in the United States had reached 366 gigawatts, up from 307 gigawatts three months earlier; installed capacity was about 50 gigawatts.

Eaton’s $9.5 billion acquisition of Boyd Thermal, completed in March, is adding liquid-cooling technology for server racks. Boyd recorded nearly triple-digit year-over-year growth, according to CEO Paulo Ruiz, and Eaton raised its full-year revenue outlook for the business by $100 million to $1.9 billion.

The company’s Aerospace segment fell short of revenue expectations for a second consecutive quarter, though operating profit exceeded consensus. Eaton’s Mobility business, meanwhile, is on track to be separated in the first four months of 2027, according to the report.

Eaton shares rose nearly 7% in afternoon trading to around $391, but remained below their August closing high of roughly $460. The report said the strong results could help establish a floor for the stock, while noting that broader weakness in the AI trade remains a risk.

Sources: CNBC Markets.