“Google is obviously doing very, very well in the market.” And: “Google is driving a lot of demand on our business.”
That is Lumentum CEO Michael Hurlston this afternoon, answering a sell-side question that opened with the news of the day: The Information had just reported that Anthropic committed to spend $200 billion with Google Cloud over five years, beginning in 2026. Anthropic alone is now responsible for more than 40 percent of Google’s disclosed revenue backlog. Anthropic plus OpenAI together account for more than half of the $2 trillion in contractual cloud-provider backlogs sitting on the tape today. The deal brings well over a gigawatt of compute capacity online in 2026.
As I wrote in “The Token Dollar”: “Borrow dollars, buy GPUs, mint tokens, sell tokens for dollars, service the carry.” The Anthropic-Google announcement is the principal. The four earnings prints reported in the same trading window are the carry getting marked into the income statement. The thesis I forecast Friday in “The Watt Asymmetry” is now a tape.
Eaton: The Industrial Layer Just Confirmed the Thesis
Q1 revenue $7.5 billion, up 17 percent with organic growth of 10 percent (three points above the high end of February guidance). Adjusted EPS $2.81 was a Q1 record. FY26 organic growth guidance raised 200 basis points at the midpoint to 9-11 percent.
The number that matters is the order book. Electrical Americas posted record sales of $3.6 billion at 25.6 percent operating margin, with twelve-month rolling orders up 42 percent organically. Total backlog is up 44 percent year over year. Electrical Global backlog is up 73 percent. Eaton also closed eleven billion dollars of strategic acquisitions including Boyd Thermal, the cooling layer that sits next to its own power layer inside the same rack. As I wrote Friday: “The Watt Asymmetry is pricing through the industrial layer in real time.” The 42 percent organic order growth is what that looks like in a $14B segment. This is not a cycle, it is a single-trade demand pull.
Below the paywall: how Lumentum’s billion-dollar Q4 guide names Google as the demand driver, why Astera’s Scorpio X-Series is a content-expansion print masquerading as a unit print, what Wolfspeed’s “purpose-built for AI racked power” disclosure means for the asset story, ServiceNow’s FAD as the Layer 7 mark, the bear case, and the watch list.
Leave a Reply