Eaton's mixed 2025 results and cautious 2026 outlook contrast with its expanding Flexnode data center partnership, shaping its investment narrative.

Eaton Corporation reported Q4 2025 sales of $7.055 billion and net income of $1.13 billion, with earnings per share rising YoY. However, the company's softer 2026 earnings outlook contrasts with its expanding data center collaboration with Flexnode. Eaton's cautious guidance and premium valuation suggest a measured near-term earnings path, while the Flexnode partnership reinforces its exposure to AI-heavy data center buildouts. The stock's valuation is expected to be between $226 and $419 per share, with investors weighing different expectations for margins, capital intensity, and balance sheet risk.