Why Did Eaton (ETN) Spend $2.1 Billion in R&D Investments?

Eaton Corporation plc (NYSE:ETN) is one of the 10 Best Data Center Stocks to Buy in July. Based on 28 analyst ratings compiled by CNN, 79% assigned Eaton a Buy rating, while 18% assigned it a Hold rating.

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Earlier, on July 2, Bank of America Securities maintained a Buy rating on Eaton, according to a TipRanks report. On the same day, Eaton reported that its investments in research and development of products and solutions that enhance energy efficiency, improve safety, and increase asset productivity since 2020 reached $2.1 billion last year, up from the $1.7 billion recorded in 2024. Eaton is targeting $3 billion in investments by 2030.

Aligned with the said investments, Eaton reported that it was able to reduce greenhouse gas (GHG) emissions by 40% in 2025 compared to the 2020 baseline figures. Additionally, the company said 96% of its new products achieved a ‘Performer’ rating last year, its standard for improved sustainability product performance.

Last month, Eaton announced that it has entered into a definitive agreement with Dana Incorporated, in which Eaton will separate and combine its Mobility Group with Dana in a Reverse Morris Trust (RMT) transaction, creating a combined company valued at over $10 billion.

Eaton Corporation plc (NYSE:ETN) is an intelligent power management company. It makes products for the data center, utility, industrial, commercial, and institutional, machine building, residential, aerospace, and mobility markets.

While we acknowledge the risk and potential of ETN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ETN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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