AI capex clears the boardroom before it clears the switchgear room. Consensus is wrong one layer downstream from the chip order: ETN earnings on May 5, 2026 has to prove power conversion, switchgear, cooling, orders, backlog, capacity spend, and margin are still becoming company evidence. Before VRT or ETN gets credit, the bottleneck has to be proven outside their income statements.
DOE and Lawrence Berkeley National Laboratory find that data centers consumed about 4.4% of total U.S. Electricity in 2023 and are expected to consume approximately 6.7% to 12.0% by 2028. DOE Office of Electricity reported that distribution-transformer purchase lead times rose 443% between 2020 and 2022; orders that previously took two to four months now take 22 to 33 months.
That is the structural setup: money can be authorized centrally, but usable AI capacity still has to pass through load growth, grid equipment, power distribution, protection gear, and thermal limits. VRT is the first conversion check. Vertiv adjusted operating margin came in at 20.8%, up 430 basis points year-on-year, and 180 basis points above management guidance.
Margin performance and strong top line growth drove adjusted operating profit of $551 million, up 64% year-on-year. Adjusted diluted EPS of $1.17 were up 83% versus Q1 2025 and exceeded management guidance by $0.19. Vertiv reported revenue of $10.23 billion in 2025 FY, +27.7% versus the prior period.
Vertiv also generated $653 million of adjusted free cash flow, up $147 million versus the prior year, driven by higher operating profit and continued working capital improvement. Vertiv backlog signal is sharper: trailing twelve-month organic orders growth was 81% and would be even higher if recent acquisitions were included. Vertiv capacity proof: "Vertiv is stepping up to 3-4% of sales in 2026, from its historical 2-3%".
Vertiv adjusted operating margin came in at 20.8%, up 430 basis points year-on-year, and 180 basis points above management guidance. Margin performance and strong top line growth drove adjusted operating profit of $551 million, up 64% year-on-year. Adjusted diluted EPS of $1.17 were up 83% versus Q1 2025 and exceeded management guidance by $0.19.
Adjusted free cash flow of $653 million was up $147 million versus the prior year, driven by higher operating profit and continued working capital improvement. Vertiv Product represented about 82.0% of Vertiv disclosed revenue mix in 2025 FY. Vertiv adjusted diluted EPS of $1.17 were up 83% versus Q1, 2025 and exceeded management guidance by $0.19.
Vertiv guidance proof: "We are raising our full year guidance, and we now expect adjusted diluted EPS of $6". That is the reason to keep the thesis at the physical layer: revenue growth matters only if it pulls orders, margin, product mix, and capacity spending with it. ETN is the next audit, not decoration.
Eaton's Electrical Americas Segment represented about 48.3% of Eaton disclosed revenue mix in 2025 FY. Eaton has announced about $1.5 billion to strategically expand capacity. Eaton management said, "We posted order growth of 11%," with backlog expansion of 16% year over year.
Eaton's Electrical Global Segment represented about 24.8% of Eaton disclosed revenue mix in 2025 FY. Eaton management said, "Our Electrical Americas backlog grew 31% year over year," reaching an all-time record. Eaton has announced investments around $1.5 billion to strategically expand capacity.
Eaton guidance still matters: Meet: "our 2026 margin guidance of 30% at the midpoint in 2026 and a 32% margin target by 2030". Eaton capacity proof: USD 1.5bn: "Eaton has announced investments around $1.5 billion to strategically expand capacity.". Eaton is scheduled to report on 2026-05-01.
ETN earnings. If Eaton cannot keep the electrical leg tight, Vertiv becomes a good company print attached to a crowded theme rather than proof that the bottleneck still reprices. Late entry: the basket has already moved +68.4% over three months, so the easy discovery return belongs to someone else.
VRT is the operating-leverage leg. Vertiv adjusted operating margin came in at 20.8%, up 430 basis points year-on-year, and 180 basis points above management guidance. Margin performance and strong top line growth drove adjusted operating profit of $551 million, up 64% year-on-year.
Adjusted diluted EPS of $1.17 were up 83% versus Q1 2025 and exceeded management guidance by $0.19. Vertiv reported revenue of $10.23 billion in 2025 FY, +27.7% versus the prior period. Vertiv also generated $653 million of adjusted free cash flow, up $147 million versus the prior year, driven by higher operating profit and continued working capital improvement.
Vertiv backlog signal is sharper: trailing twelve-month organic orders growth was 81% and would be even higher if recent acquisitions were included. Vertiv capacity proof: "Vertiv is stepping up to 3-4% of sales in 2026, from its historical 2-3%". Vertiv adjusted operating margin came in at 20.8%, up 430 basis points year-on-year, and 180 basis points above management guidance.
Margin performance and strong top line growth drove adjusted operating profit of $551 million, up 64% year-on-year. Adjusted diluted EPS of $1.17 were up 83% versus Q1 2025 and exceeded management guidance by $0.19. Adjusted free cash flow of $653 million was up $147 million versus the prior year, driven by higher operating profit and continued working capital improvement.
Vertiv Product represented about 82.0% of Vertiv disclosed revenue mix in 2025 FY. Vertiv adjusted diluted EPS of $1.17 were up 83% versus Q1, 2025 and exceeded management guidance by $0.19.