Eaton Corporation ETN reported first-quarter 2026 earnings of $2.81 per share, which surpassed the Zacks Consensus Estimate of $2.74 by 2.6%. Earnings per share during the quarter were up 3.3% year over year. The figure was within the company’s guidance of $2.65-$2.85.
GAAP earnings for the reported quarter were $2.22 per share, down 9.4% from $2.45 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to charges of 29 cents for intangible assets amortization, 8 cents for the multi-year restructuring program and 22 cents related to acquisitions and divestitures.
Eaton’s Q1 Revenues
Total quarterly revenues were $7.45 billion, which improved 16.9% from the year-ago period. The year-over-year growth in sales was due to 10% increase in organic sales, 4% increase from contributions from acquired assets and 3% growth from foreign exchange. Quarterly revenues surpassed the Zacks Consensus Estimate of $7.1 billion by 5.2%.
Eaton Corporation, PLC Price, Consensus and EPS Surprise
Eaton Corporation, PLC price-consensus-eps-surprise-chart | Eaton Corporation, PLC Quote
ETN’s Segmental Details
Electrical Americas’ total first-quarter sales were $3.6 billion, up 20% year over year. The rise was due to 14% increase in organic sales, 5% growth from acquired assets and 1% growth from foreign exchange. Operating profit was $0.92 billion, up 2% year over year.
Electrical Global’s total sales were $1.94 billion, up 21% from the year-ago quarter. The year-over-year growth was due to an increase in organic sales by 9%. Acquisition and positive currency translation added 6% each. Operating profit was $373 million, up 24% year over year.
Aerospace’s total sales were $1.14 billion, up 16% year over year. The metric was driven by organic growth of 9%, acquisition 5% and positive currency translation of 2%. Operating profit was $304 million, up 35% year over year.
Vehicle’s total sales were $586 million, down 9% year over year, due to a 13% decline in organic sales, offset by 4% increase from positive currency translation. Operating profit was $96 million, down 21% year over year.
Mobility segment’s total sales were $766 million, down 2% year over year, caused by a 6% decline in organic sales, partially offset by positive currency translation of 4%. Operating income was $89 million compared with $91 million in the year-ago quarter.
Highlights of ETN’s Q1 Release
Selling and administrative expenses were $1.27 billion, up 21.1% year over year.
Research and development expenses were $211 million, up 6.6% from the year-ago quarter’s level.
Interest expenses were $106 million, up 221.2% year over year.
Eaton’s backlog, at the end of first-quarter 2026, increased 44% in Electrical Americas, 26% in Aerospace and 73% in Electric Global on a rolling 12-month basis.
In the first quarter, the company also closed $11 billion of value-enhancing strategic acquisitions. The strategic acquisitions in high-growth, high-margin markets support long-term value creation.
Financial Update of ETN
As of March 31, 2026, cash was $565 million compared with $622 million as of Dec. 31, 2025.
Long-term debt was $565 million as of March 31, 2026, compared with $622 million as of Dec. 31, 2025.
ETN’s long-term debt was $18.53 billion as of March 31, 2026, up from $8.75 billion as of Dec. 31, 2025.
Guidance of Eaton
Eaton’s second-quarter 2026 earnings are expected in the range of $3-$3.10 per share. The company expects organic growth in the range of 9-11%.
Eaton raised its adjusted earnings per share in the range of$13.05-$13.50 for 2026, up from the previous guidance of $13-$13.50. The company anticipates organic sales growth for 2026 in the range of 9-11%. Eaton expects its segment margin to be in the range of 24.1-24.5%.
ETN’s Zacks Rank
Eaton has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
A. O. Smith Corporation’s AOS first-quarter 2026 adjusted earnings of 85 cents per share missed the Zacks Consensus Estimate of 94 cents. The bottom line decreased 11% on a year-over-year basis.
The long-term (three to five years) earnings growth rate is pinned at 12%. The Zacks Consensus Estimate of $3.86 for 2026 earnings per share has increased 0.26% year over year.
ABB Ltd. ABBNY reported quarterly earnings of 73 cents per share, lagging the Zacks Consensus Estimate of 79 cents by 11.1%.
The long-term earnings growth rate is pinned at 17.25%. The Zacks Consensus Estimate for 2026 earnings per share has increased 52.21% year over year.
AZZ AZZ reported quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.19 by 12.61%.
The Zacks Consensus Estimate for fiscal 2026 earnings per share has increased 9.85% year over year.
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