New York, February 12, 2026, 15:26 EST — Regular session
- Eaton shares swung from an early rise to a late pullback as U.S. stocks slid.
- Investors are re-testing the “AI build-out” trade across data center and power names.
- Next up: Eaton’s Feb. 17 Barclays conference fireside chat.
Eaton Corporation plc shares fell about 1.5% to $390.25 in afternoon trade on Thursday, after touching $408.43 earlier in the session. The stock was down $5.84 from Wednesday’s close of $396.09, with about 3.3 million shares traded.
The swing matters because Eaton has become a shorthand bet on electrification and the power gear needed for data centers. When that theme gets crowded, the stock can move fast in both directions.
U.S. stocks were lower on a renewed selloff in software and technology, with the S&P 500 down about 1.1% and the Nasdaq off about 1.6% by late morning. “We see this as a ‘prove it’ year for AI,” said Jack Herr, primary investment analyst at GuideStone Funds, as investors weighed whether heavy AI spending will translate into returns, with January CPI inflation data due on Friday. (Reuters)
The grid side of the AI story stayed noisy. American Electric Power expanded its five-year capital plan beyond $72 billion and said it has doubled signed data-center power deals to 56 gigawatts since October, while Entergy lifted planned spending for 2026-2029 to $43 billion as data-center demand rises. For equipment suppliers, that points to a longer runway for breakers, switchgear and other hardware that sits between power plants and new load. (Reuters)
Outside the U.S., Siemens raised its 2026 profit outlook after beating first-quarter forecasts, helped by demand tied to AI-driven data centre infrastructure. Its shares jumped more than 6%, another data point for investors trying to map the cycle. (Reuters)
Eaton, in its latest results update, reported fourth-quarter adjusted earnings per share of $3.33 and said sales rose 13% to $7.1 billion. It projected 2026 adjusted EPS — profit per share excluding certain items — of $13.00 to $13.50, and first-quarter adjusted EPS of $2.65 to $2.85. Chief executive Paulo Ruiz said the company was converting “strong demand” into faster orders, pointing to a book-to-bill ratio of 1.1, meaning orders exceeded sales and backlog kept building. (Eaton)
But the market is still arguing with Eaton’s outlook. The company’s 2026 adjusted profit forecast landed below analysts’ expectations, LSEG data cited by Reuters showed, and Eaton flagged slower ordering by large industrial customers as trade restrictions and geopolitical tensions cloud demand visibility. (Reuters)
Eaton is also in the middle of a portfolio reset, with plans to spin off its Vehicle and eMobility operations and put more weight behind electrical, aerospace and defense. “This may be as good a time as any for a cleanse,” JPMorgan analyst Stephen Tusa wrote, while Jefferies analyst Stephen Volkmann said the divested units could generate about $3.2 billion of 2026 revenue with operating margins around 13%. (Reuters)
Eaton has said it expects to complete the spin-off by the end of the first quarter of 2027, subject to approvals and a Form 10 registration statement becoming effective. It expects the separation to be tax-free to U.S. shareholders. (Eaton)
A Feb. 6 SEC filing showed Eaton increased commitments under its revolving credit facility — a bank line for short-term funding — to $4 billion from $3 billion. The same filing disclosed an $8 billion term credit agreement, with Citibank as administrative agent.
What investors watch next is Eaton’s own tone, not just the tape. The company said Michael Regelski, chief technology officer for its Electrical Sector, will take part in a Barclays Industrial Select Conference fireside chat on Feb. 17. (Eaton)
