ETN earnings analysis
What we found in ETN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Eaton Corporation's Q1 2026 results showed strong revenue growth of 17% year-over-year, reaching $7.45 billion, although adjusted EPS was lower at $2.22 compared to the prior year's $2.45 due to higher acquisition charges and restructuring costs. Management remains optimistic, adjusting organic growth guidance to 10% and predicting full-year EPS between $10.88 and $11.33, despite ongoing pressures from commodity inflation and restructuring expenses.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Q1 revenue increased by 17%, reaching $7.45B compared to $6.38B in Q1 2025.
- Solid Adjusted EPS Growth
- Adjusted EPS rose 3% to $2.81 from $2.72 in Q1 2025 despite net EPS declining to $2.22.
- Acquisition Contributions
- Revenue growth included 4% from acquisitions, indicating effective portfolio management.
- Operating Cash Flow Improvement
- Operating cash flow increased by $269M to $507M from $238M in the prior year.
- Diverse Segment Growth
- Electrical Americas grew 20% while Aerospace improved 16% year-over-year.
- Strong Backlog Metrics
- Backlog in Electrical Americas increased 44%, signaling strong future demand.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Higher Acquisition Costs
- Acquisition-related charges jumped to $109M in Q1 2026 from $10M in Q1 2025.
- Increased Debt Levels
- Short-term debt surged to $2.51B from $1M, raising liquidity concerns.
- Ongoing Restructuring Costs
- Restructuring charges reached $39M this quarter, compared to $18M a year ago, impacting net income.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.22
- Gross margin
- 35.6%
- Segment
- Electrical Americas
- Segment
- Electrical Global
- Segment
- Aerospace
- Segment
- Mobility
What they said about what is next.
Management raised organic growth guidance to 10% from a previous 8%.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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