Eaton Partners with NVIDIA on Vera Rubin Chips as Data-Center Orders Surge 240%
Eaton reported Q1 revenue of $7.5 billion, driven by a 240% surge in data-center orders and record aerospace margins of 26.7%. The firm confirmed a strategic partnership with NVIDIA to integrate its Vera Rubin AI chips into Eaton’s next-generation DC power distribution systems for AI factories.
1. Strategic NVIDIA Partnership
Eaton announced a strategic partnership with NVIDIA to adopt the Vera Rubin chip generation within its direct current (DC) power distribution architecture for AI factories. This collaboration positions Eaton as a primary integrator of NVIDIA’s AI hardware, aiming to optimize power solutions for next-generation data centers.
2. Strong Q1 Financial Performance
The company delivered record Q1 revenue of $7.5 billion, with data-center orders up 240%. Aerospace segment margins expanded to 26.7% on robust defense and commercial aftermarket demand, while Electrical Global maintained solid performance.
3. Growth Investments and Portfolio Optimization
Eaton is exiting low-margin North America light-vehicle operations to reallocate resources to high-growth electrical and aerospace markets. The Boyd Thermal acquisition and ramp-up of 12 new factories underpin a raised organic growth outlook of 13% for the full year.
4. Future Outlook and Guidance
Management raised full-year organic growth guidance by 200 basis points to a 10% midpoint and expects Electrical Americas margins to exceed a 30% exit rate in H2 2026. Data-center capacity under construction totals 32 GW in the U.S., with 70% dedicated to AI workloads.