Earnings analysis · 10-Q
ETN earnings analysis
Filed May 5, 2026 · Our reading of the company's report
The latest report
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…
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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.
Reported figures
- Earnings per share
- $2.22
- Gross margin
- 35.6%
- Segment
- Electrical Americas
- Segment
- Electrical Global
- Segment
- Aerospace
- Segment
- Mobility
What stood out
-
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.
What to watch
-
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.
Management's outlook
Management raised organic growth guidance to 10% from a previous 8%.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.