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Why Is Eaton (ETN) Down 0% Since Last Earnings Report?
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A month has gone by since the last earnings report for Eaton (ETN - Free Report) . Shares have lost about 0% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Eaton due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Eaton's Q1 Earnings and Revenues Surpass Estimates, Guidance Raised
Eaton Corporation 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%.
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%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Eaton has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Eaton has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Eaton (ETN) Down 0% Since Last Earnings Report?
A month has gone by since the last earnings report for Eaton (ETN - Free Report) . Shares have lost about 0% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Eaton due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Eaton's Q1 Earnings and Revenues Surpass Estimates, Guidance Raised
Eaton Corporation 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%.
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%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Eaton has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Eaton has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.