Eaton Q4 adjusted EPS beats, revenue slightly misses estimates

Overview

• Power management firm's Q4 adjusted EPS beat analyst expectations

• Q4 revenue slightly missed analyst expectations

• Company reported strong organic growth driven by Electrical and Aerospace segments

Outlook

• Eaton expects 2026 earnings per share between $11.57 and $12.07

• Company anticipates 2026 organic growth of 7-9%

• Eaton plans to spin off Mobility business by end of Q1 2027

Result Drivers

• ELECTRICAL AMERICAS - Segment saw 16% order acceleration driven by data center momentum, contributing to record sales and backlog growth

• AEROSPACE SEGMENT - Strong order growth of 11% contributed to record sales and backlog growth

• SEGMENT MARGINS - Record margins of 24.9% achieved, supported by organic growth and acquisitions

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Eaton Corporation PLC is $395.00, about 9.9% above its February 2 closing price of $359.44

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nBw5Vzw58a

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