Zacks Investment Research·1d ago
Eaton vs. Vertiv: Which Data Center Power Stock Has an Edge?Vertiv's AI-driven data center growth, raised 2026 outlook and stronger earnings estimates give it an edge over Eaton despite a higher valuation.
Eaton's top-line momentum is exceptional, with Q2 2026 revenue up 21.4% year-over-year to $8.5B, driven by data center and grid modernization demand. However, this growth is being purchased at the expense of profitability, as gross margin fell to 33.5% (from 3...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 21.4% year-over-year in Q2 2026, but gross margin contracted to 33.5% (down from 37.0% a year earlier) and operating margin fell to 16.3%, indicating cost inflation and negative operating leverage.
Eaton's electrical portfolio, accounting for 70% of revenue, is poised for growth with a 200% increase in data center orders and a record backlog of $19.6 billion.
Eaton's operations across multiple segments and strategic acquisitions enhance its competitive advantages and financial stability.
Eaton has a strong return on equity and recently declared a quarterly dividend of $1.10 per share, indicating a commitment to shareholder value.
Eaton's stock may be overvalued based on its P/E ratio, with DCF models suggesting it trades at a premium to intrinsic value.
Eaton's reliance on AI data center spending and large infrastructure projects poses a risk if these sectors experience a slowdown.
Eaton faces market volatility and increased competition, which could negatively impact customer demand and financial performance.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 31, 2026 | $3.15+2.6% vs $3.07 | $8.5B+4.6% vs $8.2B |
Q2 2026 May 5, 2026 | $2.81+2.9% vs $2.73 | $7.5B+4.3% vs $7.1B |
Q1 2026 Feb 3, 2026 | $3.33+0.6% vs $3.31 | $7.1B-0.5% vs $7.1B |
Q4 2025 Nov 4, 2025 | $3.07+0.7% vs $3.05 | $7.0B-1.2% vs $7.1B |
Vertiv's AI-driven data center growth, raised 2026 outlook and stronger earnings estimates give it an edge over Eaton despite a higher valuation.
Eaton (ETN) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
As AI hysteria reaches a fever pitch, it's time to look at the evidence.
Recently, Zacks.com users have been paying close attention to Eaton (ETN). This makes it worthwhile to examine what the stock has in store.
Benchmark ETN against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Eaton Corporation plc (ETN)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $442.49 | $171.82B | 42.30 | 10.33% | 14.9% | 21.52% | 0.94% | |
| $154.25 | $86.4B | 38.18 | 3% | 13.83% | 12.68% | — | |
| $211.85 | $67.14B | 14.39 | 7.85% | 22.73% | 41.21% | — | |
| $427.19 | $47.54B | 55.70 | 0.97% | 13.38% | 32.94% | — | |
| $964.85 | $121.65B | 112.98 | -71.01% | 16.97% | 25.1% | — | |
| $73.85 | $28.9B | 50.93 | 5.75% | 12.08% | 9.4% | — |
Eaton Corporation plc (ETN) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Eaton Corporation plc (ETN) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 31, 2026·SEC
Jun 11, 2026·SEC
May 5, 2026·SEC
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Eaton Corporation plc (ETN) stock FAQ — growth, dividends, profitability & financials explained
Eaton Corporation plc (ETN) reported $30.02B in revenue for fiscal year 2025. This represents a 331% increase from $6.96B in 1996.
Eaton Corporation plc (ETN) grew revenue by 10.3% over the past year. This is steady growth.
Yes, Eaton Corporation plc (ETN) is profitable, generating $3.83B in net income for fiscal year 2025 (14.9% net margin).
Yes, Eaton Corporation plc (ETN) pays a dividend with a yield of 0.94%. This makes it attractive for income-focused investors.
Eaton Corporation plc (ETN) has a return on equity (ROE) of 21.5%. This is excellent, indicating efficient use of shareholder capital.
Eaton Corporation plc (ETN) generated $4.50B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
