The power distribution equipment that goes inside data centers is one of the less visible bottlenecks in the AI infrastructure buildout. Hubbell's third-quarter 2026 results give a useful reading on it. In its Oct. 27 earnings release and the call that followed, the Connecticut-based electrical manufacturer said data center sales grew more than 80% organically from a year earlier. The company also said it is expanding manufacturing capacity, and its CEO described the limits of adding machines to existing plants.

The quarter's figures, taken from the company's Form 8-K earnings exhibit and coverage of the earnings call, show a split business. The Electrical Solutions segment, which sells into data centers and other non-residential construction, grew rapidly. Utility Solutions, which sells grid equipment to power companies, grew more slowly and was held back by a supply problem.

The Headline Numbers

In its 8-K exhibit, Hubbell reported that third-quarter net sales rose 25%. The company broke that into 11% organic growth and 13% from acquisitions. According to MarketBeat's summary of the earnings call, that brought sales to $1.873 billion. MarketBeat also reported that adjusted operating profit rose 33% and free cash flow was $280 million.

Hubbell reported adjusted diluted earnings per share of $5.91, up 14%, and an adjusted operating margin of 25.5%, according to the company's release. TIKR reported that the EPS figure beat the $5.75 analysts expected, on revenue of $1.87 billion.

Electrical Solutions: Where the Data Center Demand Shows Up

The data center business is concentrated in the Electrical Solutions segment. MarketBeat reported that segment sales rose 51% in the quarter, a figure that includes acquired businesses. On an organic basis, segment sales rose 22%, according to Utility Dive.

Within the segment, data center sales rose more than 80%. MarketBeat and TIKR reported that CEO Gerben Bakker gave this figure on the call, and Utility Dive also reported it. Utility Dive reported that data centers now account for about 15% of Electrical Solutions sales. So data centers are not yet most of the segment, but they are clearly the fastest-growing part of it. MarketBeat reported that Bakker cited wiring devices and pin-and-sleeve products as lines driving the company's data center growth.

The company's release quoted Bakker crediting ">20% organic growth in Electrical Solutions, led by strong datacenter markets." The release added that results were bolstered by content gains and capacity expansion investments.

Capacity: $25 Million a Quarter Now, $50 Million in 2027

For data center developers and contractors, the capacity plans may matter more than the sales figures. Utility Dive reported that Hubbell is spending about $25 million per quarter on added capacity. The company plans to double that to $50 million per quarter next year, or about $200 million in 2027. Utility Dive reported that the CFO said the majority of the new capacity will serve transmission, substation and data center markets.

Bakker described the physical limits of expanding existing plants. "You can only keep adding so many machines before you run out of roofline," he said, according to Utility Dive. The publication reported that most of the expansions involve adding machines and assembly lines to existing factories, though in some cases the company has begun adding square footage as well.

Utility Solutions: Slower Growth and a Meter Shortage

The utility side of the business grew more slowly. Utility Solutions organic sales rose about 5%, according to the 8-K exhibit. The exhibit put Grid Infrastructure net sales growth at approximately 13% and Grid Automation net sales at a decline of approximately 4%. Utility Dive and MarketBeat both reported the Grid Infrastructure increase as 8%, so the sources differ on that figure, while all agree on the 4% decline in grid automation.

Both TIKR and MarketBeat attributed the drop in grid automation to a component shortage in meters. TIKR described it as a temporary availability headwind. MarketBeat reported that the shortage moved about $15 million of revenue from the third quarter into the fourth. Utility Dive reported that Bakker said the shortage, which arose when a contract manufacturer could not source a key component, should be resolved by the end of the year.

For readers who follow utility planning, the comparison is worth noting. During the quarter, Hubbell's data center sales grew far faster than its utility sales, at least in this company's results.

Guidance and Market Reaction

Hubbell raised its full-year 2026 adjusted diluted EPS guidance to $20.40–$20.60, according to its 8-K exhibit. MarketBeat reported that the rest of the outlook calls for 18%–19% sales growth and an adjusted operating margin of 23.0%–23.2%.

TIKR reported that the guidance midpoint of $20.50 was roughly in line with the $20.51 analysts expected, and that Hubbell shares fell 6% on the day of the report.

Utility Dive also reported that Hubbell plans to begin 2027 price increases in November, which the CFO said are meant to address cost inflation and maintain margins.

Why It Matters for the Buildout

Large data center campuses depend on electrical gear that has to be manufactured, delivered and installed before servers go in. Hubbell's data center growth was attributed in part to wiring devices and pin-and-sleeve products. When a supplier reports sales growth of more than 80% in this market, the figure shows how much equipment is being sold into it. When its CEO says there is a limit to how many machines can be added to existing plants, that shows one place where manufacturers are running into constraints.

These are one company's results. They do not measure the whole industry. They do, however, put specific, on-the-record figures behind the broader discussion of electrical equipment supply. Hubbell disclosed how much it is spending on capacity, how much it plans to spend next year, and what its CEO said about the limits of expanding existing plants.

What Happens Next

According to Utility Dive, Hubbell plans to begin its 2027 price increases in November. The company expects the meter component shortage to be resolved by the end of the year, and about $15 million of delayed revenue has moved into the fourth quarter, per MarketBeat. Utility Dive also reported that Hubbell plans to raise its capacity investment to about $50 million per quarter in 2027, roughly $200 million for the year. The company's raised full-year 2026 guidance of $20.40–$20.60 in adjusted diluted EPS applies to the year ending in December, according to its 8-K exhibit.

Sources