Eaton (NYSE:ETN) Posts Earnings Results

Eaton (NYSE:ETN) issued its quarterly earnings data on Tuesday. The industrial products company reported $3.33 EPS for the quarter, meeting analysts’ consensus estimates of $3.33, FiscalAI reports. Eaton had a return on equity of 25.00% and a net margin of 14.89%.The business had revenue of $7.06 billion for the quarter, compared to analyst estimates of $7.15 billion. During the same quarter in the prior year, the firm posted $2.83 EPS. The firm’s revenue for the quarter was up 13.1% on a year-over-year basis. Eaton updated its Q1 2026 guidance to 2.650-2.850 EPS and its FY 2026 guidance to 13.000-13.500 EPS.

Here are the key takeaways from Eaton’s conference call:

• Eaton reported extraordinary demand momentum—particularly in data centers (orders up ~200%, sales ~40% YoY)—with book-to-bill above 1.2 and combined backlog at an all-time high (~$19.6B), giving strong multi-year revenue visibility.
• Management is pursuing heavy strategic capital deployment—~$13B of announced 2025 investments and acquisitions (Fibrebond, Resilient Power, Ultra PCS, pending Boyd Thermal) and an announced spin-off of Mobility (~$3B revenue) that it says will sharpen focus and be accretive to growth and margins.
• Electrical Americas capacity expansion (≈$1.5B across ~24 projects) is creating front‑loaded ramp costs and inefficiencies that management expects to depress margins (cites ~130 bps headwind in 2026 and a notable Q1 step‑down), and the company has suspended share buybacks in 2026 while closing Boyd.
• 2026 guidance reflects confidence but a back‑loaded year: organic growth of 7–9%, adjusted EPS $13.00–$13.50 (midpoint +10%), cash flow $3.9–4.3B, and management expects margins to improve through the year as ramp costs subside.

Eaton Price Performance

NYSE ETN traded down $8.48 on Thursday, reaching $356.52. The company’s stock had a trading volume of 489,314 shares, compared to its average volume of 3,140,162. Eaton has a 52 week low of $231.85 and a 52 week high of $399.56. The company has a current ratio of 1.32, a quick ratio of 0.79 and a debt-to-equity ratio of 0.45. The firm has a market cap of $138.47 billion, a PE ratio of 34.02, a price-to-earnings-growth ratio of 2.40 and a beta of 1.20. The business has a 50-day moving average price of $334.34 and a 200 day moving average price of $354.58.

Key Eaton News

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Company reported strong Q4 results with EPS roughly in line with Street and double‑digit revenue growth, driven by Electrical and Aerospace strength that supports longer‑term margin expansion. Eaton Beats Wall Street’s Earnings Estimates. The Stock Is Down.
• Positive Sentiment: Company cites record demand, strong orders and backlog growth (especially in Electrical/Americas and data center-related demand), supporting medium‑term revenue visibility. Eaton Corporation Rides Record Demand
• Positive Sentiment: Some sell‑side activity is constructive — Wells Fargo raised its price target, which signals upside potential if execution and end‑market demand remain strong. Wells Fargo Raises Price Target
• Positive Sentiment: Several bullish writeups argue the company’s pivot (electrical/tech focus) and planned Mobility spin‑off could unlock value and let management concentrate on faster‑growing segments. Eaton (ETN): A Strong Investment Opportunity in a Competitive Market
• Neutral Sentiment: Management is moving forward with a Mobility spin‑off and emphasizing tech-driven growth in Electrical — a strategic shift that could take time to realize financial upside. Eaton Reshapes Portfolio With Mobility Spin Off And Tech Growth Pivot
• Neutral Sentiment: Earnings call and transcripts are available for detail on margins, backlog and investments; management will present at the Barclays conference (Feb 17) — upcoming commentary could move the stock. Eaton (ETN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Management’s FY‑2026 guidance came in below Wall Street expectations, and the company framed guidance conservatively while investing to meet demand — that cautious outlook pressured the stock. Eaton forecasts annual profit below estimates, shares fall
• Negative Sentiment: Several analysts/commentaries flagged that a conservative near‑term outlook and reinvestment plans could limit upside despite strong orders — a key reason for the share decline. Eaton’s Conservative Outlook Limits Upside

Insiders Place Their Bets

In related news, Director Gerald Johnson bought 200 shares of the company’s stock in a transaction dated Tuesday, November 18th. The stock was acquired at an average cost of $339.89 per share, with a total value of $67,978.00. Following the acquisition, the director owned 400 shares in the company, valued at approximately $135,956. This represents a 100.00% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its holdings in shares of Eaton by 1.4% in the 4th quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company’s stock worth $1,109,000 after purchasing an additional 45 shares during the last quarter. DF Dent & Co. Inc. increased its holdings in shares of Eaton by 4.4% during the third quarter. DF Dent & Co. Inc. now owns 1,467 shares of the industrial products company’s stock worth $549,000 after buying an additional 62 shares in the last quarter. WFA of San Diego LLC bought a new position in shares of Eaton in the second quarter valued at approximately $36,000. Imprint Wealth LLC bought a new stake in Eaton during the 3rd quarter worth approximately $39,000. Finally, Revolve Wealth Partners LLC grew its position in Eaton by 17.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company’s stock worth $303,000 after acquiring an additional 136 shares during the last quarter. 82.97% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities analysts have commented on ETN shares. Hsbc Global Res upgraded Eaton from a “hold” rating to a “strong-buy” rating in a report on Friday, January 16th. Barclays decreased their price objective on shares of Eaton from $362.00 to $350.00 and set an “equal weight” rating for the company in a report on Wednesday, January 7th. KeyCorp lifted their target price on shares of Eaton from $410.00 to $420.00 and gave the stock an “overweight” rating in a report on Tuesday, October 14th. Royal Bank Of Canada restated an “outperform” rating and set a $407.00 price target on shares of Eaton in a report on Wednesday. Finally, JPMorgan Chase & Co. dropped their price objective on Eaton from $440.00 to $406.00 and set an “overweight” rating on the stock in a research note on Friday, January 16th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $387.20.

Eaton Company Profile

Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.

Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.