Research Analysts Set Expectations for Eaton FY2026 Earnings

Key Points

• Erste Group Bank initiated FY2026 EPS coverage for Eaton at $13.30, essentially matching the Street consensus of $13.31 per share. The firm also projected $15.33 EPS for FY2027 and kept a Buy rating on the stock.
• Eaton beat its latest quarterly expectations, reporting $2.81 EPS on $7.45 billion in revenue versus estimates of $2.73 and $7.14 billion, respectively. The company also raised guidance, setting Q2 2026 EPS at $3.00-$3.10 and FY2026 EPS at $13.05-$13.50.
• Wall Street sentiment remains constructive, with multiple firms raising price targets and MarketBeat showing a Moderate Buy consensus and average target of $415.75. Eaton also announced a $1.10 quarterly dividend, while insider selling and strong institutional ownership were noted in recent trading activity.

Eaton Corporation, PLC (NYSE:ETN - Free Report) - Equities research analysts at Erste Group Bank issued their FY2026 earnings estimates for shares of Eaton in a research report issued to clients and investors on Tuesday, May 5th. Erste Group Bank analyst H. Engel anticipates that the industrial products company will post earnings per share of $13.30 for the year. Erste Group Bank has a "Buy" rating on the stock. The consensus estimate for Eaton's current full-year earnings is $13.31 per share. Erste Group Bank also issued estimates for Eaton's FY2027 earnings at $15.33 EPS.

A number of other analysts also recently issued reports on the company. Citigroup raised their price target on Eaton from $464.00 to $471.00 and gave the stock a "buy" rating in a research report on Wednesday. KeyCorp raised their price target on Eaton from $420.00 to $480.00 and gave the stock an "overweight" rating in a research report on Wednesday. Wells Fargo & Company raised their price target on Eaton from $350.00 to $425.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Sanford C. Bernstein restated an "outperform" rating on shares of Eaton in a research report on Tuesday, January 27th. Finally, Jefferies Financial Group began coverage on Eaton in a research report on Monday, March 16th. They issued a "buy" rating and a $430.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $415.75.

Eaton Stock Down 0.1%

NYSE ETN opened at $401.07 on Monday. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.75 and a current ratio of 1.19. The company has a market capitalization of $155.73 billion, a P/E ratio of 39.21, a P/E/G ratio of 2.58 and a beta of 1.24. Eaton has a one year low of $306.77 and a one year high of $435.43. The stock has a 50 day moving average price of $380.26 and a 200-day moving average price of $360.75.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.73 by $0.08. The business had revenue of $7.45 billion during the quarter, compared to analyst estimates of $7.14 billion. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The company's revenue was up 16.8% on a year-over-year basis. During the same period last year, the firm posted $2.72 EPS. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS.

Eaton Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 8th will be given a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, May 8th. Eaton's dividend payout ratio (DPR) is 43.01%.

Insider Transactions at Eaton

In other news, insider Peter Denk sold 2,000 shares of Eaton stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $417.94, for a total transaction of $835,880.00. Following the completion of the sale, the insider directly owned 7,102 shares in the company, valued at approximately $2,968,209.88. This trade represents a 21.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Sternadt Paulo Ruiz sold 10,707 shares of Eaton stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $390.26, for a total value of $4,178,513.82. Following the completion of the sale, the insider owned 27,729 shares of the company's stock, valued at $10,821,519.54. The trade was a 27.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 31,074 shares of company stock worth $12,528,517. 0.10% of the stock is currently owned by insiders.

Institutional Trading of Eaton

Several institutional investors and hedge funds have recently made changes to their positions in ETN. Hilton Head Capital Partners LLC bought a new stake in shares of Eaton in the fourth quarter valued at about $26,000. Sfam LLC bought a new stake in shares of Eaton in the fourth quarter valued at about $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Eaton in the fourth quarter valued at about $28,000. Eagle Bay Advisors LLC purchased a new position in Eaton in the fourth quarter valued at about $29,000. Finally, WFA of San Diego LLC purchased a new position in Eaton in the second quarter valued at about $36,000. 82.97% of the stock is currently owned by institutional investors.

Trending Headlines about Eaton

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Jim Cramer publicly called Eaton a stock to buy, highlighting it as a beneficiary of electricity demand tied to AI infrastructure and data centers, which can reinforce bullish investor sentiment. Jim Cramer on Eaton: “Just Go Buy That One”
• Positive Sentiment: Analyst commentary and related coverage remain constructive after Eaton’s strong first-quarter results and raised 2026 outlook, signaling confidence in the company’s long-term earnings power and demand trends. Analysts Offer Insights on Industrial Goods Companies: Eaton (ETN), Rockwell Automation (ROK) and Otter Tail (OTTR)
• Positive Sentiment: JPMorgan reportedly issued a positive forecast for Eaton, suggesting Wall Street expectations remain favorable. JPMorgan Chase & Co. Issues Positive Forecast for Eaton NYSE: ETN Stock Price
• Neutral Sentiment: Two insiders sold shares on May 6, including Heath B. Monesmith and Peter Denk. While insider selling can weigh on sentiment, these trades do not necessarily signal a change in the company’s fundamentals. Insider trade filing for Heath B. Monesmith Insider trade filing for Peter Denk
• Negative Sentiment: Coverage around Eaton’s latest results noted margin pressure and weaker earnings quality despite higher revenue and stronger AI-related demand, which may temper enthusiasm for the stock. Eaton (ETN) Is Down 7.8% After Raising 2026 Guidance Amid Margin Pressure and AI Bet

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.

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