-
Eaton recently announced plans to open a 350,000-square-foot manufacturing campus in Henrico County, Virginia, to produce critical power distribution equipment for the rapidly growing data center market, while also securing a contract to deliver a clean-energy microgrid for the new Manchester Public Library in Connecticut.
-
Together, these moves highlight how Eaton is deepening its role across both high-power data center infrastructure and community-scale grid-interactive energy systems.
-
Next, we’ll explore how Eaton’s Virginia manufacturing expansion for data center power gear could influence its existing data center-driven investment narrative.
These 10 companies survived and thrived after COVID and have the right ingredients to survive Trump’s tariffs. Discover why before your portfolio feels the trade war pinch.
To own Eaton, you need to believe its core electrical and data center businesses can keep compounding through capacity expansion while its heavier investment cycle and weaker segments do not erode margins. The Virginia data center campus reinforces the near term catalyst around AI and cloud-related demand, but it also adds to the risk that large upfront capital and new-facility ramp inefficiencies keep margins and free cash flow under pressure if volumes or mix do not cooperate.
The Manchester Public Library microgrid project fits the same bigger picture: Eaton is trying to increase its content in intelligent, grid-interactive infrastructure tied to electrification and resilience. For investors watching data center-driven growth as the main story, these smaller community-scale wins show how Eaton’s power management portfolio can touch multiple end markets that may help offset periods when large AI and hyperscale projects become lumpier.
Yet, alongside this growth push, investors should be aware that Eaton’s heavy capacity and M&A spend could compress margins if…
Read the full narrative on Eaton (it’s free!)
Eaton’s narrative projects $33.7 billion revenue and $5.8 billion earnings by 2028. This requires 9.0% yearly revenue growth and an earnings increase of about $1.9 billion from $3.9 billion today.
Uncover how Eaton’s forecasts yield a $410.77 fair value, a 16% upside to its current price.
Seven members of the Simply Wall St Community currently value Eaton between US$153.97 and US$412.18 per share, underlining how wide opinion runs on fair value. When you set those views against Eaton’s heavy investment in new data center manufacturing capacity as both a key growth driver and a margin risk, it becomes even more important to review several contrasting perspectives before deciding how its performance might evolve.
Explore 7 other fair value estimates on Eaton – why the stock might be worth less than half the current price!
Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.
-
A great starting point for your Eaton research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
-
Our free Eaton research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Eaton’s overall financial health at a glance.
Early movers are already taking notice. See the stocks they’re targeting before they’ve flown the coop:
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ETN.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com