Eaton (NYSE:ETN) Issues Quarterly Earnings Results

Eaton (NYSE:ETN) posted its quarterly earnings results on Tuesday. The industrial products company reported $3.33 EPS for the quarter, hitting the consensus estimate of $3.33, FiscalAI reports. Eaton had a net margin of 14.74% and a return on equity of 24.36%. The business had revenue of $7.06 billion during the quarter, compared to analysts’ expectations of $7.15 billion. During the same period last year, the company posted $2.83 earnings per share. The firm’s quarterly revenue was up 13.1% compared to the same quarter last year. Eaton updated its Q1 2026 guidance to 2.650-2.850 EPS and its FY 2026 guidance to 13.000-13.500 EPS.

Eaton Stock Performance

Shares of NYSE:ETN traded down $12.02 during mid-day trading on Tuesday, reaching $347.42. The company had a trading volume of 605,409 shares, compared to its average volume of 2,934,595. The firm has a market cap of $134.94 billion, a price-to-earnings ratio of 34.85, a PEG ratio of 2.31 and a beta of 1.20. The company’s 50-day moving average price is $333.38 and its 200-day moving average price is $354.62. The company has a current ratio of 1.28, a quick ratio of 0.79 and a debt-to-equity ratio of 0.46. Eaton has a one year low of $231.85 and a one year high of $399.56.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on ETN. Hsbc Global Res raised Eaton from a “hold” rating to a “strong-buy” rating in a research note on Friday, January 16th. KeyCorp boosted their price target on Eaton from $410.00 to $420.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 14th. Wolfe Research upgraded shares of Eaton from a “peer perform” rating to an “outperform” rating and set a $413.00 price target on the stock in a research note on Tuesday, December 9th. Mizuho increased their price target on shares of Eaton from $385.00 to $425.00 and gave the stock an “outperform” rating in a research report on Friday, October 17th. Finally, Morgan Stanley cut their target price on shares of Eaton from $425.00 to $405.00 and set an “overweight” rating on the stock in a research report on Monday, January 12th. Two research 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 stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $384.30.

Insider Activity

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

Institutional Investors Weigh In On Eaton

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC boosted its stake in Eaton by 1.4% during the fourth quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company’s stock worth $1,109,000 after acquiring an additional 45 shares in the last quarter. DF Dent & Co. Inc. lifted 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 valued at $549,000 after purchasing an additional 62 shares during the last quarter. WFA of San Diego LLC bought a new stake in shares of Eaton in the 2nd quarter worth approximately $36,000. Imprint Wealth LLC purchased a new stake in shares of Eaton in the 3rd quarter worth approximately $39,000. Finally, Revolve Wealth Partners LLC increased 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 valued at $303,000 after buying an additional 136 shares in the last quarter. Institutional investors own 82.97% of the company’s stock.

Key Headlines Impacting Eaton

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Record Q4 results and backlog growth: Eaton reported record adjusted Q4 EPS of $3.33 and record sales (~$7.1B), and said orders and backlog are accelerating — a sign of demand resilience that supports medium‑term growth expectations. Business Wire: Q4 results
• Neutral Sentiment: Company filings and slide deck provide detail for investors — useful for modeling: the press release and slide deck show segment trends, charge adjustments, and drivers behind adjusted EPS. Review them to reconcile GAAP vs adjusted figures. Press Release PDF Slide Deck
• Neutral Sentiment: Analyst context ahead of release highlighted backlog and electrification demand as tailwinds — these industry trends remain supportive but now need to be weighed against management’s guidance. Zacks preview
• Negative Sentiment: Guidance disappointed: Eaton set Q1 2026 EPS at $2.65–$2.85 (consensus ~$3.02) and FY 2026 EPS at $13.00–$13.50 (consensus ~$13.53). The guidance shortfall is the main negative catalyst for sentiment and near-term multiple compression. Guidance update (company release)
• Negative Sentiment: Minor quarter misses: Reported EPS of $3.33 missed consensus by $0.01 and revenue came in ~ $7.05B vs. ~$7.15B expected — the revenue shortfall reinforced concerns behind the conservative guidance and prompted downward price pressure. Seeking Alpha: shares slide

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.