Overview
Power management firm's Q4 adjusted EPS beat analyst expectations
Q4 revenue slightly missed analyst expectations
Company reported strong organic growth driven by Electrical and Aerospace segments
Outlook
Eaton expects 2026 earnings per share between $11.57 and $12.07
Company anticipates 2026 organic growth of 7-9%
Eaton plans to spin off Mobility business by end of Q1 2027
Result Drivers
ELECTRICAL AMERICAS - Segment saw 16% order acceleration driven by data center momentum, contributing to record sales and backlog growth
AEROSPACE SEGMENT - Strong order growth of 11% contributed to record sales and backlog growth
SEGMENT MARGINS - Record margins of 24.9% achieved, supported by organic growth and acquisitions
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Miss* | $7.06 bln | $7.10 bln (17 Analysts) |
Q4 Adjusted EPS | Beat | $3.33 | $3.29 (19 Analysts) |
Q4 EPS | $2.91 | ||
Q4 Adjusted Net Income | Slight Beat* | $1.30 bln | $1.29 bln (13 Analysts) |
Q4 Net Income | $1.13 bln | ||
Q4 Organic Growth | 9.00% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Eaton Corporation PLC is $395.00, about 9.9% above its February 2 closing price of $359.44
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago
Press Release: ID:nBw5Vzw58a
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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