Zacks Research Issues Negative Estimate for Eaton Earnings

Eaton Corporation, PLC (NYSE:ETN) – Zacks Research lowered their Q1 2026 earnings per share (EPS) estimates for Eaton in a research report issued on Monday, February 16th. Zacks Research analyst Team now expects that the industrial products company will earn $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.

Several other research firms have also recently weighed in on ETN. Wells Fargo & Company lifted their price objective on shares of Eaton from $340.00 to $370.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 4th. Wolfe Research upgraded Eaton from a “peer perform” rating to an “outperform” rating and set a $413.00 price target on the stock in a report on Tuesday, December 9th. HSBC raised Eaton from a “hold” rating to a “buy” rating and set a $400.00 price objective for the company in a research note on Friday, January 16th. Citigroup lowered their target price on Eaton from $442.00 to $435.00 and set a “buy” rating on the stock in a research note on Monday, January 12th. Finally, Barclays reduced their price target on shares of Eaton from $362.00 to $350.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 7th. Two 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 MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $389.89.

Eaton Stock Down 0.8%

ETN stock opened at $377.22 on Wednesday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.32 and a quick ratio of 0.81. The firm has a market capitalization of $146.51 billion, a P/E ratio of 36.06, a P/E/G ratio of 2.62 and a beta of 1.20. Eaton has a 52-week low of $231.85 and a 52-week high of $408.45. The company’s 50 day simple moving average is $343.04 and its 200-day simple moving average is $354.58.

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, hitting the consensus estimate of $3.33. Eaton had a return on equity of 25.00% and a net margin of 14.89%.The firm had revenue of $7.06 billion for the quarter, compared to the consensus estimate of $7.15 billion. During the same quarter in the previous year, the company earned $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.

Insider Transactions at Eaton

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

Institutional Investors Weigh In On Eaton

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC lifted its stake in shares of Eaton by 1.4% in the fourth quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company’s stock worth $1,109,000 after buying an additional 45 shares during the last quarter. Revolve Wealth Partners LLC lifted its position in Eaton by 17.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company’s stock worth $303,000 after acquiring an additional 136 shares during the last quarter. Empowered Funds LLC boosted its holdings in Eaton by 5.6% during the first quarter. Empowered Funds LLC now owns 9,402 shares of the industrial products company’s stock valued at $2,556,000 after acquiring an additional 496 shares during the period. Lyell Wealth Management LP grew its position in shares of Eaton by 3.2% in the second quarter. Lyell Wealth Management LP now owns 975 shares of the industrial products company’s stock valued at $348,000 after purchasing an additional 30 shares during the last quarter. Finally, Whittier Trust Co. increased its stake in shares of Eaton by 6.2% in the second quarter. Whittier Trust Co. now owns 272,608 shares of the industrial products company’s stock worth $97,315,000 after purchasing an additional 15,971 shares during the period. 82.97% of the stock is currently owned by institutional investors and hedge funds.

More Eaton News

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.