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Eaton Q3 sales, EPS beat estimates on strong demand

By Reuters News


Overview

  • Intelligent power management firm's Q3 sales rose 28%, beating analyst expectations

  • Adjusted EPS for Q3 beat consensus, reaching a record $3.68

  • Company agreed to acquire COL Group to expand European power distribution


Outlook

  • Eaton sees Q4 organic growth of 13-15% and segment margins of 25.4-25.8%

  • Company expects Q4 adjusted EPS between $4.05 and $4.15

  • Eaton raises full-year 2026 organic growth guidance to 13-15%


Result Drivers

  • ORGANIC SALES GROWTH - Co said Q3 results were driven by 19% organic sales growth, with broad end-market strength across Electrical Americas, Electrical Global and Aerospace

  • RECORD ORDERS AND BACKLOG - Co reported record order dollars and backlog in Electrical Americas, Electrical Global and Aerospace, citing robust demand and expanding customer investments

  • SEGMENT MARGIN IMPROVEMENT - Co attributed record segment margins of 25.3% to higher sales and improved performance amid continued capacity investments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$8.95 bln

$8.51 bln (18 Analysts)

Q3 Adjusted EPS

Beat

$3.68

$3.54 (20 Analysts)

Q3 EPS

$2.77

Q3 Adjusted Net Income

Beat

$1.43 bln

$1.36 bln (12 Analysts)

Q3 Net Income

$1.08 bln

Q3 Organic Growth

19.00%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the electrical components & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Eaton Corporation PLC is $487.00, about 33% above its November 2 closing price of $366.07

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 28 three months ago


Reuters Recommended Reads

  • Nov 2 - Advanced Energy Q3 revenue beats on record semiconductor and data center computing sales

  • Nov 3 - DuPont Q3 sales beat estimates, lifts 2026 profit outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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