Eaton Corporation (ETN)
NYSEIndustrialsSpecialty Industrial MachinerySnapshot 2026-07-07
$395.68-4.29%
Close 2026-07-07 · 1-day change
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Track ETN free→Warn: Management is running behind on a stated commitment.
Eaton targets 9-11% organic growth in 2026 with 10% growth in Q1. Profit margins aim for 24.6-25.0% this year, up from 22.7% in Q1. EPS is expected to rise 6% in 2026, supported by strong demand and strategic mergers. The company is expanding in data center and mobility sectors, boosting growth potential.
Margins remain below target, with Q1 at 22.7%. EPS growth may fall short of 6% if cost pressures rise. The recent 4.3% stock pullback signals investor caution amid volatile management and sector headwinds.
The price is about 16% above our fair value near $347 but 28% below the Street median. Analysts expect 16% revenue growth, which is higher than our 10% organic growth target. The market prices in strong growth, but our view is more cautious on margin and EPS delivery.
Breaks if: EPS growth falls below 3% in FY26
Eaton aims to increase earnings per share by 6% in 2026 compared to 2025.
Stated in 3 of last 3 quarters. Earnings per share were $2.22 in 2026-Q1, with guidance indicating a 6% increase for the full year. Recurring focus, narrow delivery so far.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“For full year 2026, earnings per share expected to be between $10.88 and $11.33, up 6% at the midpoint over 2025.”
“EPS guidance for 2026 is up 6% at the midpoint over 2025.”
“Expecting a 6% EPS increase in 2026.”
Breaks if: Organic revenue growth falls below 7% in FY26
Eaton targets organic growth of 9-11% for the full year 2026.
Newly stated in 2026-Q1. First quarter sales were up 17% with organic sales growth of 10%, aligning with the 9-11% target for the year. Initial delivery matches stated goal.
“For the full year 2026, the company anticipates: Organic growth of 9-11%.”
Breaks if: Segment margins remain below 23% in FY26
Eaton aims to achieve segment margins between 24.6% and 25.0% for the full year 2026.
Stated in 3 of last 3 quarters. Segment margins were 22.7% in 2026-Q1, below the 24.6-25.0% target for the year. Persistent statement, limited substantive delivery this quarter.
“For the full year 2026, the company anticipates: Segment margins of 24.6-25.0%.”
“Segment margins of 24.6-25.0% for 2026.”
“Guidance for 2026 includes segment margins of 24.6-25.0%.”
Breaks if: Merger or acquisition integration fails or delays beyond 2026