Published by Global Banking & Finance Review®
Posted on January 31, 2025
2 min readLast updated: January 26, 2026
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Eaton projects 2025 profits above estimates due to AI-driven data center demand, with potential challenges from new AI models like DeepSeek.
(Reuters) - Eaton Corporation on Friday forecast 2025 adjusted profit above Wall Street estimates, expecting demand for electrical equipment to remain strong due to an artificial intelligence-related data center boom.
Global appetite for data centers has increased as companies race to develop and adopt artificial intelligence, benefiting electrical equipment makers like Eaton.
Shares of the company were up 2.7% in premarket trading.
In the fourth quarter, sales for the electrical business in the Americas were up 9% while sales in the global electrical segment rose 4%.
However, the industry's growth could face challenges from Chinese start-up DeepSeek's new AI model, which is cheaper and consumes less electricity than OpenAI's ChatGPT, stoking concerns that newer technologies could have smaller power requirements, Reuters reported earlier this month.
Excluding items, the Ireland-based company expects 2025 profit between $11.80 and $12.20 per share, with the mid-point higher than analysts' estimates of $11.95 per share, according to data compiled by LSEG.
Net sales for quarter ended Dec. 31 were $6.24 billion, up from $5.97 billion a year earlier. Analysts, on average, were expecting $6.33 billion.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Leroy Leo)
Eaton expects its 2025 profit to be between $11.80 and $12.20 per share, which is above analysts' estimates of $11.95 per share.
In the fourth quarter, Eaton's sales for the electrical business in the Americas rose by 9%, while the global electrical segment saw a 4% increase.
Eaton may face challenges from Chinese start-up DeepSeek's new AI model, which is cheaper and consumes less electricity than OpenAI's ChatGPT.
Shares of Eaton were up 2.7% in premarket trading following the announcement of their profit forecast.
Eaton reported net sales of $6.24 billion for the quarter ended December 31, up from $5.97 billion a year earlier.
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