What is Zacks Research's Estimate for Eaton FY2026 Earnings?

Key Points

• Zacks Research raised Eaton’s FY2026 EPS estimate to $13.49 from $13.47, slightly below the broader consensus of $13.55. Its Q4 FY2026 estimate is $4.02 per share.
• Eaton recently exceeded quarterly expectations, reporting $3.15 EPS versus the $3.08 consensus and $8.53 billion in revenue versus $8.16 billion expected. Management guides to FY2026 EPS of $13.40–$13.60.
• The stock carries a “Moderate Buy” consensus rating and a $440.89 average price target, but valuation is a concern at roughly 42 times earnings. Eaton’s AI data-center partnerships and infrastructure contracts provide growth opportunities, while some longer-term EPS forecasts were reduced.

Eaton Corporation, PLC (NYSE:ETN - Free Report) - Equities researchers at Zacks Research lifted their FY2026 EPS estimates for shares of Eaton in a research note issued on Thursday, August 20th. Zacks Research analyst Team now forecasts that the industrial products company will earn $13.49 per share for the year, up from their prior forecast of $13.47. The consensus estimate for Eaton's current full-year earnings is $13.55 per share. Zacks Research also issued estimates for Eaton's Q4 2026 earnings at $4.02 EPS.

Eaton (NYSE:ETN - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share for the quarter, topping analysts' consensus estimates of $3.08 by $0.07. The company had revenue of $8.53 billion during the quarter, compared to analyst estimates of $8.16 billion. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The business's revenue for the quarter was up 21.4% compared to the same quarter last year. During the same period in the prior year, the business posted $2.95 EPS. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS.

Other analysts have also issued reports about the stock. Royal Bank Of Canada increased their target price on shares of Eaton from $484.00 to $512.00 and gave the company an "outperform" rating in a research note on Monday, August 3rd. Robert W. Baird set a $500.00 price objective on shares of Eaton in a research report on Thursday. Wall Street Zen lowered Eaton from a "buy" rating to a "hold" rating in a report on Sunday, August 16th. JPMorgan Chase & Co. increased their target price on shares of Eaton from $406.00 to $445.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, KeyCorp lifted their price target on shares of Eaton from $420.00 to $480.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $440.89.

Eaton Trading Down 2.0%

Shares of ETN stock opened at $416.05 on Friday. The stock has a 50-day simple moving average of $416.71 and a 200 day simple moving average of $395.92. The stock has a market capitalization of $161.59 billion, a P/E ratio of 42.32, a P/E/G ratio of 2.69 and a beta of 1.18. Eaton has a fifty-two week low of $311.92 and a fifty-two week high of $478.00. The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.91.

Eaton Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 7th will be paid a $1.10 dividend. This represents a $4.40 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, August 7th. Eaton's dividend payout ratio (DPR) is 44.76%.

Insider Buying and Selling

In other news, insider Heath B. Monesmith sold 18,036 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $458.04, for a total value of $8,261,209.44. Following the transaction, the insider directly owned 50,368 shares in the company, valued at $23,070,558.72. This trade represents a 26.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Adam A. Wadecki sold 525 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $440.54, for a total value of $231,283.50. Following the transaction, the insider owned 1,054 shares of the company's stock, valued at $464,329.16. The trade was a 33.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by insiders.

Institutional Trading of Eaton

A number of institutional investors have recently modified their holdings of ETN. Wellington Management Group LLP boosted its holdings in shares of Eaton by 19.6% in the 2nd quarter. Wellington Management Group LLP now owns 6,827,266 shares of the industrial products company's stock valued at $2,909,235,000 after buying an additional 1,120,567 shares during the last quarter. PFA Pension Forsikringsaktieselskab bought a new position in shares of Eaton in the 4th quarter valued at about $97,989,000. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of Eaton by 112.6% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 336,060 shares of the industrial products company's stock worth $120,199,000 after purchasing an additional 178,000 shares during the last quarter. Munich Reinsurance Co Stock Corp in Munich lifted its stake in Eaton by 24,986.3% in the 1st quarter. Munich Reinsurance Co Stock Corp in Munich now owns 154,281 shares of the industrial products company's stock valued at $55,182,000 after purchasing an additional 153,666 shares during the last quarter. Finally, Public Employees Retirement System of Ohio bought a new stake in Eaton in the second quarter valued at approximately $64,858,000. 82.97% of the stock is currently owned by institutional investors.

Key Stories Impacting Eaton

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Eaton announced a collaboration with Trane Technologies to integrate electrical systems and thermal management for next-generation AI data centers aligned with NVIDIA’s DSX platforms. The partnership strengthens Eaton’s position in the rapidly expanding AI infrastructure market. Can Trane Technologies plc and Eaton Become Major Winners from the AI Data Center Boom?
• Positive Sentiment: Eaton won contracts from BSD Builders to supply power-management technology to 35 California healthcare facilities, supporting demand for backup power, resilience and emergency-readiness solutions. Eaton Wins Contracts From BSD Builders
• Positive Sentiment: The company’s AI data-center strategy is attracting favorable investor attention because major technology companies are expected to spend heavily on data-center construction, creating potential demand for Eaton’s electrical infrastructure products. Big Tech Is on Pace to Spend $735 Billion on AI Data Centers
• Neutral Sentiment: Eaton named Shawn Black president of its Aerospace Group, effective August 17. The appointment signals a leadership transition, but no immediate financial impact was disclosed. Eaton Names Shawn Black President, Aerospace
• Negative Sentiment: Valuation remains a concern: Eaton has delivered about a 165% five-year return, trades at roughly 42 times earnings, and a discounted-cash-flow analysis indicates the shares are above estimated fair value. Eaton Stock Looks to Trade at a Premium to Fair Value
• Negative Sentiment: Zacks Research lowered multiple 2027 and 2028 EPS forecasts, including FY2027 earnings to $15.41 from $15.69 and FY2028 earnings to $17.30 from $17.70. The reductions suggest expectations for earnings growth may be moderating. Analyst Earnings Estimates for Eaton

About Eaton

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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