Zacks Research Has Pessimistic View of Eaton Q1 Earnings

Eaton Corporation, PLC (NYSE:ETN) – Analysts at Zacks Research reduced their Q1 2027 EPS estimates for Eaton in a research report issued to clients and investors on Monday, February 16th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $3.41 for the quarter, down from their prior forecast of $3.47. The consensus estimate for Eaton’s current full-year earnings is $12.02 per share. Zacks Research also issued estimates for Eaton’s Q2 2027 earnings at $3.85 EPS, Q3 2027 earnings at $4.01 EPS and FY2027 earnings at $15.32 EPS.

Several other analysts have also recently issued reports on the company. JPMorgan Chase & Co. cut their target price on Eaton from $440.00 to $406.00 and set an “overweight” rating on the stock in a research note on Friday, January 16th. Morgan Stanley reissued an “overweight” rating and set a $425.00 target price on shares of Eaton in a research note on Wednesday, February 4th. Wolfe Research raised Eaton from a “peer perform” rating to an “outperform” rating and set a $413.00 price target for the company in a research note on Tuesday, December 9th. HSBC raised shares of Eaton from a “hold” rating to a “buy” rating and set a $400.00 price objective on the stock in a research report on Friday, January 16th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $407.00 target price on shares of Eaton in a research report on Wednesday, February 4th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, Eaton has a consensus rating of “Moderate Buy” and an average price target of $389.89.

Eaton Price Performance

Shares of Eaton stock opened at $380.59 on Thursday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.32 and a quick ratio of 0.81. Eaton has a one year low of $231.85 and a one year high of $408.45. The business’s 50 day simple moving average is $342.50 and its two-hundred day simple moving average is $354.42. The stock has a market capitalization of $147.82 billion, a P/E ratio of 36.38, a price-to-earnings-growth ratio of 2.70 and a beta of 1.20.

Eaton (NYSE:ETN) last released its earnings results on Tuesday, February 3rd. The industrial products company reported $3.33 EPS for the quarter, meeting the consensus estimate of $3.33. The company had revenue of $7.06 billion for the quarter, compared to analyst estimates of $7.15 billion. Eaton had a net margin of 14.89% and a return on equity of 25.00%. The firm’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same quarter last year, the firm earned $2.83 EPS. Eaton has set its Q1 2026 guidance at 2.650-2.850 EPS and its FY 2026 guidance at 13.000-13.500 EPS.

Institutional Investors Weigh In On Eaton

Several hedge funds and other institutional investors have recently made changes to their positions in ETN. Fayez Sarofim & Co raised its position in Eaton by 3.4% in the third quarter. Fayez Sarofim & Co now owns 1,256,177 shares of the industrial products company’s stock worth $474,444,000 after acquiring an additional 40,792 shares during the period. Williams Jones Wealth Management LLC. lifted its position in shares of Eaton by 3.3% in the third quarter. Williams Jones Wealth Management LLC. now owns 515,587 shares of the industrial products company’s stock worth $192,958,000 after buying an additional 16,422 shares in the last quarter. Baird Financial Group Inc. lifted its position in Eaton by 8.8% during the second quarter. Baird Financial Group Inc. now owns 370,531 shares of the industrial products company’s stock valued at $132,276,000 after purchasing an additional 29,900 shares during the last quarter. SG Americas Securities LLC increased its position in shares of Eaton by 438.9% during the 4th quarter. SG Americas Securities LLC now owns 364,877 shares of the industrial products company’s stock valued at $116,217,000 after purchasing an additional 297,166 shares during the last quarter. Finally, Silvercrest Asset Management Group LLC lifted its holdings in shares of Eaton by 23.1% in the 4th quarter. Silvercrest Asset Management Group LLC now owns 310,859 shares of the industrial products company’s stock worth $99,012,000 after acquiring an additional 58,281 shares during the last quarter. Hedge funds and other institutional investors own 82.97% of the company’s stock.

Insider Activity at Eaton

In related news, insider Sternadt Paulo Ruiz sold 10,707 shares of the firm’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $390.26, for a total value of $4,178,513.82. Following the sale, the insider owned 27,729 shares in the company, valued at approximately $10,821,519.54. This trade represents a 27.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.30% of the stock is owned by corporate insiders.

Eaton News Summary

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Zacks raised some longer‑term and late‑cycle estimates — they nudged Q4 2027 EPS to $4.05 and raised Q4 2026 EPS to $3.75, and published a FY2028 EPS view of $17.17. These indicate expectations for stronger back‑half performance/longer‑term growth that could support valuation if realized.
• Neutral Sentiment: Eaton presented at Barclays’ Industrial Select conference (transcript available), which provides management commentary and execution updates but so far hasn’t altered consensus materially. Eaton Barclays Presentation
• Neutral Sentiment: Industry coverage highlights AI/data‑center winners (Vertiv) and contrasts their secular tailwinds with Eaton’s broader, cyclical industrial exposure. This frames Eaton as more cyclical versus pure plays on AI infrastructure, which can pressure relative multiples. Vertiv AI Backlog
• Negative Sentiment: Zacks issued a string of downward revisions to near‑term EPS: cuts to Q1–Q3 2026 and Q1–Q3 2027 estimates and trimmed FY2026 and FY2027 forecasts (FY2026 lowered to $13.29; FY2027 to $15.32). The breadth of cuts signals pressure to near‑term margins/revenue and is a primary driver of selling pressure.
• Negative Sentiment: Los Angeles County prosecutors are probing whether Southern California Edison should face criminal charges over the Eaton wildfire that killed 19 people — a development that raises legal, reputational and potential liability risk for parties tied to the incident. LA Times: Prosecutors Probe Edison
• Negative Sentiment: The New York Times reports Southern California Edison will reduce executive bonuses tied to the Eaton fire, underscoring management accountability and increasing the chance of regulatory/enforcement fallout that could affect costs or contract timing. NYT: Edison Reduces Bonuses

Eaton Company Profile

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.