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Eaton to Post Q3 Earnings: What to Expect for the Stock This Season?

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Key Takeaways

  • Eaton's Q3 earnings are expected to benefit from global megatrends, the ongoing energy transition.
  • Q3 EPS is projected between $3.01 and $3.07, reflecting 7.75% annual growth.
  • Growth is driven by electrification, AI data center demand and a strong backlog.

Eaton Corporation (ETN - Free Report) is expected to report an improvement in both top and bottom lines when it reports third-quarter 2025 results on Nov. 4, before market open. The company reported an earnings surprise of 1.03% in the second quarter.

ETN’s Q3 Earnings Expectation

The Zacks Consensus Estimate for ETN’s revenues is pegged at $7.06 billion, indicating a 11.23% increase from the year-ago reported figure.

ETN expects its third-quarter earnings to be in the range of $3.01 to $3.07 per share. The consensus estimate for earnings is pegged at $3.06 per share, indicating a 7.75% increase from the year-ago reported figure.

Factors Likely to Have Driven ETN’s Q3 Earnings Performance

Electrification, global megatrends, the ongoing energy transition and reindustrialization have been fueling growth across nearly 75% of Eaton’s end markets. These drivers are likely to contribute to strong third-quarter results. Rising demand from power-hungry AI data centers has opened up new opportunities, providing further support to earnings.

Eaton’s broad product portfolio continues to drive strong order wins, steadily increasing. Its strong backlog offers a reliable pipeline of future revenues, contributing to the company’s solid performance. Eaton’s expertise in meeting essential power management demands has fueled organic growth across several segments. This is likely to support its third-quarter results.

Eaton’s ongoing investment in research and development strengthens the quality of its existing products while supporting the development of new solutions for customers. This steady stream of innovation enables ETN to secure more orders and expand its market footprint, ultimately driving earnings growth. For the third quarter, the company expects organic revenues to increase 8-9%.

The ongoing repurchase of shares, through free cash flow, is also likely to have had a positive impact on the third-quarter earnings of the company.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

ETN’s Earnings ESP: Eaton has an Earnings ESP of -0.11%.

ETN’s Zacks Rank: Eaton currently carries a Zacks Rank of 3.

Stocks With the Favorable Combination

Here are some stocks in the same sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.

Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for third-quarter earnings per share reflects a year-over-year decline of 13.92%.
 
Tennant Company
(TNC - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for third-quarter earnings per share reflects a year-over-year increase of 7.19%. 
 


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