Zacks Research Issues Optimistic Forecast for Eaton Earnings

Key Points

• Zacks Research has increased Eaton's Q4 2025 EPS estimate from $3.24 to $3.29, with a full-year earnings consensus estimate of $12.02 per share.
• During its recent quarterly earnings report, Eaton beat estimates by reporting $2.95 EPS and $7.03 billion in revenue, up 10.7% year-over-year.
• A number of banks have raised their price targets for Eaton, with Morgan Stanley setting a new target of $425.00, reflecting positive sentiment from analysts towards the stock.

Eaton Corporation, PLC (NYSE:ETN - Free Report) - Equities researchers at Zacks Research boosted their Q4 2025 earnings estimates for shares of Eaton in a note issued to investors on Tuesday, August 19th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $3.29 for the quarter, up from their previous estimate of $3.24. The consensus estimate for Eaton's current full-year earnings is $12.02 per share. Zacks Research also issued estimates for Eaton's Q1 2026 earnings at $3.10 EPS and Q2 2026 earnings at $3.37 EPS.

Several other analysts have also recently commented on ETN. BNP Paribas initiated coverage on shares of Eaton in a research note on Thursday, May 15th. They issued an "outperform" rating and a $380.00 target price for the company. Redburn Atlantic initiated coverage on Eaton in a report on Wednesday. They issued a "hold" rating and a $336.00 price objective on the stock. Royal Bank Of Canada boosted their target price on Eaton from $336.00 to $356.00 and gave the stock an "outperform" rating in a research report on Monday, May 5th. Barclays increased their price objective on Eaton from $340.00 to $344.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 6th. Finally, Morgan Stanley increased their target price on shares of Eaton from $375.00 to $425.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Fourteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, Eaton presently has a consensus rating of "Moderate Buy" and a consensus target price of $379.10.

Eaton Stock Performance

Shares of Eaton stock traded up $1.9770 during trading hours on Wednesday, hitting $347.3570. 1,964,878 shares of the company were exchanged, compared to its average volume of 2,630,220. The company has a current ratio of 1.24, a quick ratio of 0.76 and a debt-to-equity ratio of 0.47. The business has a 50-day moving average of $360.36 and a 200-day moving average of $319.71. Eaton has a 1 year low of $231.85 and a 1 year high of $399.56. The stock has a market capitalization of $135.23 billion, a price-to-earnings ratio of 34.95, a P/E/G ratio of 2.55 and a beta of 1.18.

Eaton (NYSE:ETN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $2.95 EPS for the quarter, beating the consensus estimate of $2.92 by $0.03. Eaton had a return on equity of 23.91% and a net margin of 15.11%.The firm had revenue of $7.03 billion during the quarter, compared to the consensus estimate of $6.93 billion. During the same period in the prior year, the business earned $2.73 EPS. The firm's revenue was up 10.7% compared to the same quarter last year. Eaton has set its Q3 2025 guidance at 3.010-3.070 EPS. FY 2025 guidance at 11.970-12.170 EPS.

Eaton Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Thursday, August 7th were issued a dividend of $1.04 per share. This represents a $4.16 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Thursday, August 7th. Eaton's dividend payout ratio is 41.85%.

Insiders Place Their Bets

In other news, insider Olivier Leonetti sold 16,018 shares of the business's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $358.39, for a total value of $5,740,691.02. Following the completion of the transaction, the insider directly owned 630 shares of the company's stock, valued at $225,785.70. The trade was a 96.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.30% of the company's stock.

Institutional Trading of Eaton

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ETN. North Dallas Bank & Trust Co. acquired a new stake in shares of Eaton during the 2nd quarter worth about $602,000. Winslow Asset Management Inc. lifted its stake in shares of Eaton by 0.7% during the second quarter. Winslow Asset Management Inc. now owns 28,186 shares of the industrial products company's stock valued at $10,062,000 after buying an additional 195 shares during the period. SkyView Investment Advisors LLC acquired a new stake in Eaton during the second quarter worth approximately $300,000. Stonebridge Capital Advisors LLC raised its holdings in Eaton by 4.1% in the 2nd quarter. Stonebridge Capital Advisors LLC now owns 33,118 shares of the industrial products company's stock valued at $11,823,000 after acquiring an additional 1,292 shares during the last quarter. Finally, WFA of San Diego LLC purchased a new position in shares of Eaton during the 2nd quarter worth $36,000. Hedge funds and other institutional investors own 82.97% of the company's stock.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.