Analysts Set Expectations for Eaton’s Q1 Earnings (NYSE:ETN)

Eaton Corporation, PLC (NYSE:ETN) – Zacks Research lowered their Q1 2027 EPS estimates for Eaton in a report issued on Monday, February 16th. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $3.41 for the quarter, down from their prior estimate of $3.47. The consensus estimate for Eaton’s current full-year earnings is $12.02 per share. Zacks Research also issued estimates for Eaton’s Q2 2027 earnings at $3.85 EPS, Q3 2027 earnings at $4.01 EPS and FY2027 earnings at $15.32 EPS.

Eaton (NYSE:ETN) last posted its quarterly earnings data 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 net margin of 14.89% and a return on equity of 25.00%. The firm had revenue of $7.06 billion during the quarter, compared to the consensus estimate of $7.15 billion. During the same quarter in the previous year, the firm posted $2.83 EPS. The business’s revenue for the quarter 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 analysts have also issued reports about the company. Barclays reduced their price objective on Eaton from $362.00 to $350.00 and set an “equal weight” rating on the stock in a research note on Wednesday, January 7th. Wells Fargo & Company increased their price target on Eaton from $340.00 to $370.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 4th. Citigroup cut their price objective on shares of Eaton from $442.00 to $435.00 and set a “buy” rating on the stock in a report on Monday, January 12th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Eaton in a research note on Tuesday, January 27th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $407.00 target price on shares of Eaton in a research note on Wednesday, February 4th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $389.89.

Eaton Stock Down 0.8%

ETN stock opened at $377.22 on Thursday. The company has a quick ratio of 0.81, a current ratio of 1.32 and a debt-to-equity ratio of 0.45. The company has a market cap of $146.51 billion, a PE ratio of 36.06, a price-to-earnings-growth ratio of 2.62 and a beta of 1.20. The business has a 50-day simple moving average of $343.04 and a 200 day simple moving average of $354.58. Eaton has a 52 week low of $231.85 and a 52 week high of $408.45.

Institutional Investors Weigh In On Eaton

Several institutional investors have recently modified their holdings of ETN. Jones Financial Companies Lllp lifted its position in Eaton by 9.9% during the third quarter. Jones Financial Companies Lllp now owns 45,998 shares of the industrial products company’s stock valued at $16,830,000 after purchasing an additional 4,156 shares in the last quarter. Mediolanum International Funds Ltd raised its stake in shares of Eaton by 14.2% in the third quarter. Mediolanum International Funds Ltd now owns 121,162 shares of the industrial products company’s stock worth $44,485,000 after buying an additional 15,048 shares during the period. Baird Financial Group Inc. lifted its position in shares of Eaton by 8.8% during the 2nd quarter. Baird Financial Group Inc. now owns 370,531 shares of the industrial products company’s stock valued at $132,276,000 after buying an additional 29,900 shares in the last quarter. Bowen Hanes & Co. Inc. lifted its position in shares of Eaton by 1.7% during the 2nd quarter. Bowen Hanes & Co. Inc. now owns 197,775 shares of the industrial products company’s stock valued at $70,604,000 after buying an additional 3,295 shares in the last quarter. Finally, Cullen Frost Bankers Inc. grew its stake in shares of Eaton by 6.0% during the 3rd quarter. Cullen Frost Bankers Inc. now owns 162,634 shares of the industrial products company’s stock valued at $60,866,000 after acquiring an additional 9,233 shares during the period. 82.97% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

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

Key Stories Impacting Eaton

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Zacks nudged up Q4 2027 EPS to $4.05 (from $4.04) — a small upside for Eaton’s later-year cadence that partially offsets near-term cuts. MarketBeat ETN
• Positive Sentiment: Zacks also raised Q4 2026 to $3.75 (from $3.58) and published a FY2028 outlook of $17.17 EPS — signals of stronger longer‑term earnings power. MarketBeat ETN
• Neutral Sentiment: Coverage in the NYT reports Southern California Edison will reduce executive bonuses after the wildfire labeled the “Eaton” fire; this concerns the utility, not Eaton Corporation, but may create name‑confusion volatility. Edison Will Reduce Executive Bonuses as a Result of the Eaton Fire
• Neutral Sentiment: The Los Angeles County DA is probing whether Southern California Edison should face criminal charges over the deadly “Eaton” wildfire — again about the utility’s conduct and not Eaton Corp, but it can add headline risk/misunderstanding. County prosecutors probing whether Edison should be criminally prosecuted for Eaton fire
• Neutral Sentiment: Broader industry piece on Vertiv (data‑center equipment) is being discussed by investors as an AI/data‑center signal; not directly about Eaton’s fundamentals but relevant to industrial/energy hardware peers. Vertiv’s $15 Billion Backlog Is the Loudest AI Signal in 2026 (ETN)
• Negative Sentiment: Zacks cut multiple near‑term EPS estimates — Q1 2026/2027, Q2 2026/2027, Q3 2026/2027 and some 2026 quarterly forecasts — and trimmed FY2026 to $13.29 (from $13.55) and FY2027 to $15.32 (from $15.45). These downgrades reduce near‑term growth expectations and are the primary bearish catalyst cited by traders. MarketBeat ETN

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.