We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eaton's Q1 Earnings and Revenues Surpass Estimates, Guidance Raised
Read MoreHide Full Article
Key Takeaways
Eaton posted Q1 operating EPS of $2.81, beating estimates, as revenues rose 16.9% to $7.45B.
Eaton said sales grew 10% organically, plus 4% from acquisitions and 3% from FX gains.
ETN closed $11B of acquisitions; backlog jumped in Electrical Americas, Aerospace and Electrical Global.
Eaton Corporation (ETN - Free Report) reported first-quarter 2026 earnings of $2.81 per share, which surpassed the Zacks Consensus Estimate of $2.74 by 2.6%. Earnings per share during the quarter were up 3.3% year over year. The figure was within the company’s guidance of $2.65-$2.85.
GAAP earnings for the reported quarter were $2.22 per share, down 9.4% from $2.45 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 29 cents for intangible assets amortization, 8 cents for the multi-year restructuring program and 22 cents related to acquisitions and divestitures.
Eaton’s Q1 Revenues
Total quarterly revenues were $7.45 billion, which improved 16.9% from the year-ago period. The year-over-year growth in sales was due to 10% increase in organic sales, 4% increase from contributions from acquired assets and 3% growth from foreign exchange. Quarterly revenues surpassed the Zacks Consensus Estimate of $7.1 billion by 5.2%.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Electrical Americas’ total first-quarter sales were $3.6 billion, up 20% year over year. The rise was due to 14% increase in organic sales, 5% growth from acquired assets and 1% growth from foreign exchange. Operating profit was $0.92 billion, up 2% year over year.
Electrical Global’s total sales were $1.94 billion, up 21% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. Acquisition and positive currency translation added 6% each. Operating profit was $373 million, up 24% year over year.
Aerospace’s total sales were $1.14 billion, up 16% year over year. The metric was driven by organic growth of 9%, acquisition 5% and positive currency translation of 2%. Operating profit was $304 million, up 35% year over year.
Vehicle’s total sales were $586 million, down 9% year over year, due to a 13% decline in organic sales, offset by 4% increase from positive currency translation. Operating profit was $96 million, down 21% year over year.
Mobility segment’s total sales were $766 million, down 2% year over year, caused by a 6% decline in organic sales, partially offset by positive currency translation of 4%. Operating income was $89 million compared with $91 million in the year-ago quarter.
Highlights of ETN’s Q1 Release
Selling and administrative expenses were $1.27 billion, up 21.1% year over year.
Research and development expenses were $211 million, up 6.6% from the year-ago quarter’s level.
Interest expenses were $106 million, up 221.2% year over year.
Eaton’s backlog, at the end of first-quarter 2026, increased 44% in Electrical Americas, 26% in Aerospace and 73% in Electric Global on a rolling 12-month basis. In the first quarter, the company also closed $11 billion of value-enhancing strategic acquisitions. The strategic acquisitions in high-growth, high-margin markets support long-term value creation.
Financial Update of ETN
As of March 31, 2026, cash was $565 million compared with $622 million as of Dec. 31, 2025.
Long-term debt was $565 million as of March 31, 2026, compared with $622 million as of Dec. 31, 2025.
ETN’s long-term debt was $18.53 billion as of March 31, 2026, up from $8.75 billion as of Dec. 31, 2025.
Guidance of Eaton
Eaton’s second-quarter 2026 earnings are expected in the range of $3-$3.10 per share. The company expects organic growth in the range of 9-11%.
Eaton raised its adjusted earnings per share in the range of$13.05-$13.50 for 2026, up from the previous guidance of $13-$13.50. The company anticipates organic sales growth for 2026 in the range of 9-11%. Eaton expects its segment margin to be in the range of 24.1-24.5%.
A. O. Smith Corporation’s (AOS - Free Report) first-quarter 2026 adjusted earnings of 85 cents per share missed the Zacks Consensus Estimate of 94 cents. The bottom line decreased 11% on a year-over-year basis.
The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate of $3.86 for 2026 earnings per share has increased 0.26% year over year.
ABB Ltd. (ABBNY - Free Report) reported quarterly earnings of 73 cents per share, lagging the Zacks Consensus Estimate of 79 cents by 11.1%.
The long-term earnings growth rate is pinned at 17.25%. The Zacks Consensus Estimate for 2026 earnings per share has increased 52.21% year over year.
AZZ (AZZ - Free Report) reported quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.19 by 12.61%.
The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 9.85% year over year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Eaton's Q1 Earnings and Revenues Surpass Estimates, Guidance Raised
Key Takeaways
Eaton Corporation (ETN - Free Report) reported first-quarter 2026 earnings of $2.81 per share, which surpassed the Zacks Consensus Estimate of $2.74 by 2.6%. Earnings per share during the quarter were up 3.3% year over year. The figure was within the company’s guidance of $2.65-$2.85.
GAAP earnings for the reported quarter were $2.22 per share, down 9.4% from $2.45 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 29 cents for intangible assets amortization, 8 cents for the multi-year restructuring program and 22 cents related to acquisitions and divestitures.
Eaton’s Q1 Revenues
Total quarterly revenues were $7.45 billion, which improved 16.9% from the year-ago period. The year-over-year growth in sales was due to 10% increase in organic sales, 4% increase from contributions from acquired assets and 3% growth from foreign exchange. Quarterly revenues surpassed the Zacks Consensus Estimate of $7.1 billion by 5.2%.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
ETN’s Segmental Details
Electrical Americas’ total first-quarter sales were $3.6 billion, up 20% year over year. The rise was due to 14% increase in organic sales, 5% growth from acquired assets and 1% growth from foreign exchange. Operating profit was $0.92 billion, up 2% year over year.
Electrical Global’s total sales were $1.94 billion, up 21% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. Acquisition and positive currency translation added 6% each. Operating profit was $373 million, up 24% year over year.
Aerospace’s total sales were $1.14 billion, up 16% year over year. The metric was driven by organic growth of 9%, acquisition 5% and positive currency translation of 2%. Operating profit was $304 million, up 35% year over year.
Vehicle’s total sales were $586 million, down 9% year over year, due to a 13% decline in organic sales, offset by 4% increase from positive currency translation. Operating profit was $96 million, down 21% year over year.
Mobility segment’s total sales were $766 million, down 2% year over year, caused by a 6% decline in organic sales, partially offset by positive currency translation of 4%. Operating income was $89 million compared with $91 million in the year-ago quarter.
Highlights of ETN’s Q1 Release
Selling and administrative expenses were $1.27 billion, up 21.1% year over year.
Research and development expenses were $211 million, up 6.6% from the year-ago quarter’s level.
Interest expenses were $106 million, up 221.2% year over year.
Eaton’s backlog, at the end of first-quarter 2026, increased 44% in Electrical Americas, 26% in Aerospace and 73% in Electric Global on a rolling 12-month basis.
In the first quarter, the company also closed $11 billion of value-enhancing strategic acquisitions. The strategic acquisitions in high-growth, high-margin markets support long-term value creation.
Financial Update of ETN
As of March 31, 2026, cash was $565 million compared with $622 million as of Dec. 31, 2025.
Long-term debt was $565 million as of March 31, 2026, compared with $622 million as of Dec. 31, 2025.
ETN’s long-term debt was $18.53 billion as of March 31, 2026, up from $8.75 billion as of Dec. 31, 2025.
Guidance of Eaton
Eaton’s second-quarter 2026 earnings are expected in the range of $3-$3.10 per share. The company expects organic growth in the range of 9-11%.
Eaton raised its adjusted earnings per share in the range of$13.05-$13.50 for 2026, up from the previous guidance of $13-$13.50. The company anticipates organic sales growth for 2026 in the range of 9-11%. Eaton expects its segment margin to be in the range of 24.1-24.5%.
ETN’s Zacks Rank
Eaton has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
A. O. Smith Corporation’s (AOS - Free Report) first-quarter 2026 adjusted earnings of 85 cents per share missed the Zacks Consensus Estimate of 94 cents. The bottom line decreased 11% on a year-over-year basis.
The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate of $3.86 for 2026 earnings per share has increased 0.26% year over year.
ABB Ltd. (ABBNY - Free Report) reported quarterly earnings of 73 cents per share, lagging the Zacks Consensus Estimate of 79 cents by 11.1%.
The long-term earnings growth rate is pinned at 17.25%. The Zacks Consensus Estimate for 2026 earnings per share has increased 52.21% year over year.
AZZ (AZZ - Free Report) reported quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.19 by 12.61%.
The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 9.85% year over year.