Eaton forecasts annual profit above estimates on strong data center demand

July 31 (Reuters) - Eaton forecast its annual profit above Wall Street expectations on Friday, citing steady demand for its electrical components amid a rapid surge in AI data centers, sending its shares up 5% in premarket trading.

Apart from data centers, rising demand from power grids and domestic manufacturing has boosted orders for electrical equipment makers such as Eaton, prompting them to expand capacity and invest in infrastructure.

• "While data centers remain a key growth driver, we are benefiting from robust demand across our end markets," CEO Paulo Ruiz said.
• The supplier of electrical components and wiring across sectors such as aerospace, automobiles and utilities posted second-quarter adjusted profit of $3.15 per share, compared with analysts' estimates of $3.07 per share.
• Total quarterly revenue rose 21% to $8.53 billion, beating estimates of $8.13 billion.
• The Dublin, Ireland-based company expects 2026 adjusted profit between $13.4 and $13.6 per share, the midpoint of which is above analysts' expectations of $13.24 per share, according to data compiled by LSEG.