Zacks Research Brokers Lower Earnings Estimates for Eaton

Eaton Corporation, PLC (NYSE:ETN) – Zacks Research reduced their Q1 2026 earnings per share (EPS) estimates for Eaton in a report released on Monday, February 16th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $2.83 per share for the quarter, down from their previous forecast of $3.08. The consensus estimate for Eaton’s current full-year earnings is $12.02 per share. Zacks Research also issued estimates for Eaton’s Q2 2026 earnings at $3.21 EPS, Q3 2026 earnings at $3.50 EPS, Q4 2026 earnings at $3.75 EPS, FY2026 earnings at $13.29 EPS, Q4 2027 earnings at $4.05 EPS and FY2028 earnings at $17.17 EPS.

Eaton (NYSE:ETN) last announced its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $3.33 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $3.33. Eaton had a return on equity of 25.00% and a net margin of 14.89%.The business had revenue of $7.06 billion for the quarter, compared to the consensus estimate of $7.15 billion. During the same period last year, the business posted $2.83 EPS. The business’s revenue was up 13.1% compared to the same quarter last year. Eaton has set its Q1 2026 guidance at 2.650-2.850 EPS and its FY 2026 guidance at 13.000-13.500 EPS.

Other equities research analysts have also issued reports about the stock. HSBC raised shares of Eaton from a “hold” rating to a “buy” rating and set a $400.00 price objective on the stock in a report on Friday, January 16th. JPMorgan Chase & Co. cut their price objective on Eaton from $440.00 to $406.00 and set an “overweight” rating on the stock in a report on Friday, January 16th. Morgan Stanley reaffirmed an “overweight” rating and set a $425.00 target price on shares of Eaton in a report on Wednesday, February 4th. Wolfe Research upgraded Eaton from a “peer perform” rating to an “outperform” rating and set a $413.00 target price on the stock in a research report on Tuesday, December 9th. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $407.00 price target on shares of Eaton in a research report on Wednesday, February 4th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $389.89.

Eaton Price Performance

Shares of ETN stock opened at $380.59 on Wednesday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.81 and a current ratio of 1.32. Eaton has a fifty-two week low of $231.85 and a fifty-two week high of $408.45. The firm has a market capitalization of $147.82 billion, a price-to-earnings ratio of 36.38, a PEG ratio of 2.70 and a beta of 1.20. The stock’s 50-day simple moving average is $342.50 and its 200-day simple moving average is $354.42.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Wealth Intelligence LLC acquired a new position in Eaton in the fourth quarter valued at about $2,740,000. Silvercrest Asset Management Group LLC lifted its holdings in shares of Eaton by 23.1% in the 4th quarter. Silvercrest Asset Management Group LLC now owns 310,859 shares of the industrial products company’s stock worth $99,012,000 after acquiring an additional 58,281 shares during the last quarter. Aureus Asset Management LLC boosted its position in shares of Eaton by 2.8% during the 4th quarter. Aureus Asset Management LLC now owns 2,353 shares of the industrial products company’s stock worth $749,000 after purchasing an additional 63 shares during the period. Advisory Services Network LLC increased its holdings in Eaton by 7.6% in the 4th quarter. Advisory Services Network LLC now owns 34,925 shares of the industrial products company’s stock valued at $11,124,000 after purchasing an additional 2,480 shares during the last quarter. Finally, Harvest Investment Advisors LLC purchased a new stake in Eaton in the fourth quarter valued at approximately $324,000. 82.97% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other Eaton news, insider Sternadt Paulo Ruiz sold 10,707 shares of the company’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $390.26, for a total value of $4,178,513.82. Following the completion of the sale, the insider directly owned 27,729 shares in the company, valued at $10,821,519.54. This represents a 27.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.30% of the stock is owned by company insiders.

Key Stories Impacting Eaton

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Brokerage consensus remains constructive — ETN carries a “Moderate Buy” consensus from brokerages, which can help limit sell-side pressure. Eaton Given Consensus Rating of “Moderate Buy”
• Neutral Sentiment: Eaton presented at Barclays’ industrial conference (investor access and messaging may help clarity but introduced no new guidance). Eaton Presents at Barclays Conference (Transcript)
• Neutral Sentiment: Reporting that Southern California Edison will cut executive bonuses related to the Eaton wildfire is largely Edison-specific; limited direct operational impact on Eaton Corp but it increases media focus on the blaze. Edison Will Reduce Executive Bonuses as a Result of the Eaton Fire
• Negative Sentiment: Zacks issued mixed but net-negative estimate revisions — cuts to near-term quarters (Q1–Q3 2026) and a reduced FY2026 EPS view lower near-term expectations and likely contributed to downward pressure on the stock. MarketBeat – Eaton Stock Page / Zacks Notes
• Negative Sentiment: Ongoing law-enforcement scrutiny: The Los Angeles County DA is probing whether Southern California Edison should face criminal charges over the Eaton wildfire. Even though the probe targets Edison, the prominence of the “Eaton” fire in headlines can create investor confusion and heightened regulatory/legal sensitivity across the sector. County prosecutors probing whether Edison should be criminally prosecuted for Eaton fire
• Negative Sentiment: Competitive/industry pressure highlighted by Vertiv coverage — a MarketBeat deep dive praises Vertiv’s AI-driven backlog and contrasts it with Eaton’s exposure to cyclical end markets, underscoring potential relative valuation pressure and investor rotation toward pure AI/data-center plays. Vertiv’s $15 Billion Backlog Is the Loudest AI Signal in 2026

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.