Zacks Research Has Bearish Estimate for Eaton Q3 Earnings

Key Points

• Zacks Research trimmed its Q3 2026 EPS estimate for Eaton to $3.47 from $3.51, signaling a slightly more bearish near-term outlook. It also forecast FY2026 EPS at $13.26 and Q3 2027 EPS at $4.02.
• Eaton’s latest quarterly results beat expectations, with Q1 EPS of $2.81 versus $2.73 expected and revenue of $7.45 billion versus $7.14 billion expected. The company also posted strong margins and raised/affirmed guidance for 2026.
• Analyst sentiment remains mostly constructive despite the small estimate cut, with Eaton holding a “Moderate Buy” consensus and an average price target of $420.95. Recent analyst actions included several buy ratings and higher price targets.

Eaton Corporation, PLC (NYSE:ETN - Free Report) - Zacks Research dropped their Q3 2026 EPS estimates for shares of Eaton in a report released on Monday, May 18th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings per share of $3.47 for the quarter, down from their previous forecast of $3.51. The consensus estimate for Eaton's current full-year earnings is $13.33 per share. Zacks Research also issued estimates for Eaton's FY2026 earnings at $13.26 EPS and Q3 2027 earnings at $4.02 EPS.

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

Other equities analysts have also recently issued research reports about the stock. Sanford C. Bernstein reissued an "outperform" rating on shares of Eaton in a research report on Tuesday, January 27th. Jefferies Financial Group started coverage on shares of Eaton in a research report on Monday, March 16th. They set a "buy" rating and a $430.00 price objective for the company. Evercore set a $453.00 price objective on shares of Eaton in a research report on Monday, May 11th. Weiss Ratings cut shares of Eaton from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday. Finally, Citigroup lifted their price objective on shares of Eaton from $464.00 to $471.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $420.95.

Eaton Stock Performance

Shares of ETN stock opened at $379.91 on Thursday. The company has a quick ratio of 0.75, a current ratio of 1.19 and a debt-to-equity ratio of 0.94. Eaton has a 52 week low of $311.90 and a 52 week high of $435.43. The stock has a market capitalization of $147.52 billion, a PE ratio of 37.14, a P/E/G ratio of 2.39 and a beta of 1.24. The firm has a 50 day moving average of $386.29 and a two-hundred day moving average of $362.04.

Eaton Dividend Announcement

The company also recently disclosed 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 1.2%. The ex-dividend date of this dividend is Friday, May 8th. Eaton's payout ratio is 43.01%.

Insider Activity

In related news, insider Antonio Galvao sold 494 shares of Eaton stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $405.86, for a total transaction of $200,494.84. Following the sale, the insider directly owned 9,175 shares in the company, valued at $3,723,765.50. This trade represents a 5.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 sale, the insider owned 7,102 shares in the company, valued at $2,968,209.88. This represents a 21.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 20,861 shares of company stock valued at $8,550,498 in the last 90 days. Company insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Eaton

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Front Row Advisors LLC raised its stake in Eaton by 0.7% during the 1st quarter. Front Row Advisors LLC now owns 7,357 shares of the industrial products company's stock worth $2,631,000 after acquiring an additional 51 shares in the last quarter. Strategic Investment Advisors MI acquired a new stake in Eaton during the 1st quarter worth $206,000. Arkadios Wealth Advisors raised its stake in Eaton by 4.5% during the 1st quarter. Arkadios Wealth Advisors now owns 8,377 shares of the industrial products company's stock worth $2,996,000 after acquiring an additional 357 shares in the last quarter. Sunbelt Securities Inc. raised its stake in Eaton by 1.8% during the 1st quarter. Sunbelt Securities Inc. now owns 3,436 shares of the industrial products company's stock worth $1,229,000 after acquiring an additional 61 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in Eaton by 15.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 3,603 shares of the industrial products company's stock worth $1,289,000 after acquiring an additional 484 shares in the last quarter. 82.97% of the stock is currently owned by institutional investors and hedge funds.

Eaton News Summary

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Investor commentary highlighted Eaton as a beneficiary of AI’s “grid-to-chip” power needs, pointing to record first-quarter sales, strong organic growth, and record Electrical Americas revenue tied to electrification demand. Why Eaton (ETN) Is Benefiting From AI’s Grid-to-Chip Power Demands
• Positive Sentiment: One research update nudged Eaton’s Q4 2026 EPS estimate higher, which reinforces expectations for continued earnings strength.
• Positive Sentiment: Another item described TCW’s concentrated growth fund maintaining conviction in Eaton, suggesting institutional investors still see upside in the stock. Here’s Why TCW Concentrated Large Cap Growth Fund Maintains Conviction in Eaton Corporation plc (ETN)
• Neutral Sentiment: Other analyst notes were mostly small adjustments, including minor cuts to some near-term and longer-term EPS estimates, indicating a broadly stable but not uniformly bullish outlook.
• Neutral Sentiment: A Globe and Mail roundup of analyst views on industrial-goods companies included Eaton, but did not add a major new catalyst. Analysts Offer Insights on Industrial Goods Companies: ALS (OtherCPBLF), Electro Optic Systems Holdings Limited (OtherEOPSF) and Eaton (ETN)

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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