Zacks Research Weighs in on Eaton's Q3 Earnings (NYSE:ETN)

Key Points

• Zacks Research lowered Eaton’s Q3 2026 EPS estimate to $3.50 from $3.52, while projecting $13.47 in FY2026 EPS versus the current full-year consensus of $13.54.
• Eaton’s latest quarterly results exceeded expectations, with EPS of $3.15 versus $3.08 expected and revenue of $8.53 billion, up 21.4% year over year. The company maintained Q3 and FY2026 EPS guidance ranges of $3.46–$3.56 and $13.40–$13.60, respectively.
• The stock opened at $457.04 and carries a “Moderate Buy” consensus rating with a $431.78 price target; Eaton also declared a $1.10 quarterly dividend, equal to a 1.0% annualized yield.

Eaton Corporation, PLC (NYSE:ETN - Free Report) - Research analysts at Zacks Research cut their Q3 2026 earnings per share (EPS) estimates for shares of Eaton in a research report issued to clients and investors on Friday, August 14th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $3.50 per share for the quarter, down from their prior estimate of $3.52. The consensus estimate for Eaton's current full-year earnings is $13.54 per share. Zacks Research also issued estimates for Eaton's Q4 2026 earnings at $4.00 EPS and FY2026 earnings at $13.47 EPS.

A number of other brokerages have also commented on ETN. KeyCorp lifted their price target on Eaton from $420.00 to $480.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. BMO Capital Markets boosted their target price on shares of Eaton from $477.00 to $487.00 and gave the stock an "outperform" rating in a report on Monday, August 3rd. Weiss Ratings downgraded shares of Eaton from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Eaton in a report on Monday, August 3rd. Finally, Barclays upped their price target on Eaton from $340.00 to $392.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $431.78.

Eaton Stock Up 1.2%

ETN stock opened at $457.04 on Tuesday. The stock has a market capitalization of $177.51 billion, a P/E ratio of 46.49, a price-to-earnings-growth ratio of 2.86 and a beta of 1.18. Eaton has a 12 month low of $311.92 and a 12 month high of $478.00. The company has a current ratio of 1.24, a quick ratio of 0.79 and a debt-to-equity ratio of 0.91. The firm has a 50-day moving average price of $414.72 and a 200-day moving average price of $394.38.

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

Eaton Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be given a dividend of $1.10 per share. The ex-dividend date is Friday, August 7th. This represents a $4.40 annualized dividend and a dividend yield of 1.0%. Eaton's dividend payout ratio is currently 44.76%.

Insider Buying and Selling

In other Eaton news, Director Dorothy C. Thompson sold 167 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $385.00, for a total value of $64,295.00. Following the sale, the director directly owned 1,096 shares in the company, valued at $421,960. This represents a 13.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Adam A. Wadecki sold 525 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $440.54, for a total value of $231,283.50. Following the transaction, the insider directly owned 1,054 shares in the company, valued at approximately $464,329.16. This represents a 33.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 18,728 shares of company stock valued at $8,556,788. Corporate insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Eaton

A number of large investors have recently modified their holdings of the stock. Clal Insurance Enterprises Holdings Ltd boosted its holdings in Eaton by 239,384.8% in the fourth quarter. Clal Insurance Enterprises Holdings Ltd now owns 158,060 shares of the industrial products company's stock worth $50,344,000 after acquiring an additional 157,994 shares in the last quarter. Burling Wealth Partners LLC increased its holdings in Eaton by 63.0% in the 4th quarter. Burling Wealth Partners LLC now owns 11,296 shares of the industrial products company's stock worth $3,598,000 after acquiring an additional 4,366 shares in the last quarter. Pioneer Trust Bank N A OR lifted its stake in shares of Eaton by 669.1% during the 4th quarter. Pioneer Trust Bank N A OR now owns 6,230 shares of the industrial products company's stock valued at $1,984,000 after buying an additional 5,420 shares in the last quarter. Entropy Technologies LP bought a new stake in Eaton during the fourth quarter valued at about $14,786,000. Finally, Kingswood Wealth Advisors LLC lifted its holdings in shares of Eaton by 41.0% in the fourth quarter. Kingswood Wealth Advisors LLC now owns 25,072 shares of the industrial products company's stock worth $7,986,000 after buying an additional 7,296 shares in the last quarter. Institutional investors own 82.97% of the company's stock.

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.

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