Want to see ETN full AI Analyst Report?
Top Page
Eaton
(NYSE:ETN)
Select Model
Select Model
Rating:71Outperform
Price Target:
$482.00
â–²(18.66% Upside)
Action:Reiterated
Date:06/11/26
ETN’s score is driven primarily by strong fundamentals and a constructive outlook (healthy margins, strong cash conversion, raised 2026 growth/EPS guidance, and strong backlog/data-center demand). Offsetting this are increased balance-sheet leverage and a weak near-term technical picture, while valuation is relatively rich with only a modest dividend yield.
Positive Factors
Strong Cash Generation
Sustained FCF that nearly equals net income indicates high earnings quality and strong internal funding for capex, dividends, and M&A. Over the next 2–6 months this durable cash conversion supports reinvestment in capacity, de-leveraging plans, and shareowner returns without requiring external financing.
Negative Factors
Higher Leverage
A material step-up in leverage reduces balance-sheet flexibility and increases financing risk if cyclical demand softens. Over the next 2–6 months, elevated debt levels could constrain opportunistic M&A, require higher interest servicing, and limit the pace of share repurchases or special distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Sustained FCF that nearly equals net income indicates high earnings quality and strong internal funding for capex, dividends, and M&A. Over the next 2–6 months this durable cash conversion supports reinvestment in capacity, de-leveraging plans, and shareowner returns without requiring external financing.
Read all positive factors
Eaton Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down total revenue by segment, providing a comprehensive view of Eaton's diverse business operations and strategic focus areas.
Breaks down total revenue by segment, providing a comprehensive view of Eaton's diverse business operations and strategic focus areas.
Data provided by:
The Fly
The FlyEaton (ETN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$154.75B
Dividend Yield1.29%
Average Volume (3M)2.61M
Price to Earnings (P/E)38.8
Beta (1Y)1.27
Revenue Growth12.68%
EPS Growth3.12%
CountryUS
Employees97,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)10.26
Shares Outstanding388,300,000
10 Day Avg. Volume2,541,714
30 Day Avg. Volume2,607,977
Financial Highlights & Ratios
PEG Ratio3.05
Price to Book (P/B)6.37
Price to Sales (P/S)4.50
P/FCF Ratio34.80
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue6.32
Enterprise Value/Gross Profit17.14
Enterprise Value/Ebitda28.94
Forecast
1Y Price Target
$463.58Price Target Upside14.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)13.33
Revenue Forecast (FY)$32.12B
Eaton Business Overview & Revenue Model
Company Description
Eaton Corp. Plc is a power management company, which provides energy-efficient solutions for electrical, hydraulic, and mechanical power. It operates through the following segments: Electrical Americas and Electrical Global; Aerospace, Vehicle, an...
How the Company Makes Money
Eaton primarily makes money by selling engineered products, systems, and solutions used to manage, distribute, protect, and control electrical power, along with aerospace components and systems. Revenue is generated mainly through: (1) Product and...
Eaton Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives — record revenue and segment profit, robust organic growth, exceptional data center order momentum, large backlog growth, significant free cash flow improvement, and accretive strategic acquisitions and partnerships. The primary negatives were transitory: Electrical Americas margin pressure from ramp and input-cost timing, a deliberate mobility carve-out causing a near-term sales decline, and near-term acquisition integration and technology commercialization timing. Management provided clear actions (price increases, factory ramping, ongoing CapEx) and quantified an expected sequential margin recovery (Electrical Americas +150 bps Q1→Q2) and reiterated longer-term margin targets, leading to confidence that the negatives are temporary while the growth runway is durable.Positive Updates
Record Revenue and Profitability
Recorded Q1 revenue of $7.5 billion (Q1 record) and Q1 segment operating profit of $1.7 billion (Q1 record); reported adjusted EPS of $2.81 (Q1 record), $0.06 above the midpoint of guidance.
Negative Updates
Electrical Americas Margin Pressure in Q1
Electrical Americas margins underperformed in Q1 (segment operating margin 25.6% in the business) leading to a company-wide segment margin guidance range (24.1%–24.5%) that is ~50 basis points lower than prior guide; management attributes the hit mainly to timing effects and one-time ramp costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Profitability
Recorded Q1 revenue of $7.5 billion (Q1 record) and Q1 segment operating profit of $1.7 billion (Q1 record); reported adjusted EPS of $2.81 (Q1 record), $0.06 above the midpoint of guidance.
Read all positive updates
Company Guidance
Eaton raised its 2026 outlook: organic revenue growth is now guided to 9–11% (midpoint 10%, up 200 bps), adjusted EPS to $13.05–$13.50 (midpoint $13.28) — reflecting the Q1 beat and Boyd dilution — and full‑year segment margin guidance to 24.1–24.5% (50 bps below prior guide). Management reiterated roughly $4.4 billion of full‑year segment profit in dollars, reaffirmed cash‑flow expectations and provided Q2 guidance, noting Q1 free cash flow was up 245% YoY and Q1 adjusted EPS was a record $2.81 (beat midpoint by $0.06) on record revenue of $7.5 billion and Q1 segment operating profit of $1.7 billion (Q1 margins 22.7%). They expect Electrical Americas and Electrical Global to be ~300 bps higher at the midpoint versus prior guide, Electrical Americas to improve ~150 bps from Q1→Q2 and to exit 2026 north of 30% (aiming for 32% by 2030), and called out data‑center backlog at 228 GW (12 years at 2025 build rates) with 32 GW under construction in the U.S. (70% AI); Boyd Thermal is on track for ~$1.7 billion+ revenue in 2026 (about $1.4 billion included in Eaton results).Eaton Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
63
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.52B | 27.45B | 24.88B | 23.20B | 20.75B | 19.63B |
| Gross Profit | 10.52B | 10.32B | 9.50B | 8.43B | 6.91B | 6.32B |
| EBITDA | 6.23B | 5.95B | 5.63B | 4.96B | 3.95B | 3.96B |
| Net Income | 3.99B | 4.09B | 3.79B | 3.22B | 2.46B | 2.14B |
Balance Sheet | ||||||
| Total Assets | 55.09B | 41.25B | 38.38B | 38.43B | 35.03B | 34.03B |
| Cash, Cash Equivalents and Short-Term Investments | 751.00M | 803.00M | 2.08B | 2.61B | 555.00M | 568.00M |
| Total Debt | 21.83B | 11.17B | 9.82B | 9.80B | 9.11B | 8.92B |
| Total Liabilities | 35.32B | 21.78B | 19.85B | 19.36B | 17.95B | 17.58B |
| Stockholders Equity | 19.77B | 19.43B | 18.49B | 19.04B | 17.04B | 16.41B |
Cash Flow | ||||||
| Free Cash Flow | 4.70B | 3.55B | 3.52B | 2.87B | 1.94B | 1.59B |
| Operating Cash Flow | 4.74B | 4.47B | 4.33B | 3.62B | 2.53B | 2.16B |
| Investing Cash Flow | -13.71B | -1.10B | -271.00M | -2.58B | -1.20B | -1.76B |
| Financing Cash Flow | 7.87B | -3.17B | -3.94B | -871.00M | -1.34B | -535.00M |
Eaton Technical Analysis
Neutral
406.21
Price Trends
406.69
Negative
389.30
Positive
369.71
Positive
Market Momentum
2.43
Positive
47.13
Neutral
41.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETN, the sentiment is Neutral. The current price of 406.21 is below the 20-day moving average (MA) of 406.97, below the 50-day MA of 406.69, and above the 200-day MA of 369.71, indicating a neutral trend. The MACD of 2.43 indicates Positive momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 41.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ETN.
Eaton Risk Analysis
Eaton disclosed 19 risk factors in its most recent earnings report. Eaton reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eaton Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $121.41B | 35.03 | 24.69% | 0.79% | 6.03% | 4.26% | |
77 Outperform | $52.49B | 48.83 | 30.25% | 1.33% | 10.45% | 21.30% | |
71 Outperform | $154.75B | 38.84 | 20.81% | 1.29% | 12.68% | 3.12% | |
71 Outperform | $77.88B | 31.97 | 12.11% | 1.58% | 4.03% | 3.51% | |
70 Outperform | $78.47B | 25.28 | 97.38% | 2.43% | 2.90% | -5.25% | |
65 Neutral | $31.54B | 53.73 | 5.80% | 0.10% | 6.86% | -26.67% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
ETN
Eaton
398.52
44.12
12.45%
EMR
Emerson Electric Company
139.05
2.87
2.10%
ITW
Illinois Tool Works
272.76
24.38
9.81%
PH
Parker Hannifin
962.89
262.39
37.46%
ROK
Rockwell Automation
471.70
137.50
41.14%
IR
Ingersoll Rand
80.59
-6.16
-7.10%
Eaton Corporate Events
Business Operations and StrategyM&A Transactions
Eaton to Spin Off Mobility Group in Dana Merger
Positive
Jun 11, 2026
Eaton, the intelligent power management group, is accelerating its portfolio shift toward higher-growth, higher-margin electrical and aerospace businesses that are tied to megatrends such as electrification, AI-driven data centers, infrastructure ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Eaton Shareholders Approve Directors, Pay and Capital Authorities
Positive
Apr 23, 2026
At Eaton’s Annual General Meeting of Shareholders held on April 22, 2026, investors elected 11 director nominees to serve until the next annual meeting, reaffirming the current board’s composition and governance structure. Shareholders...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.