Eaton earnings: third quarter 2026

Eaton, which makes electrical equipment for buildings, utilities and data centres as well as parts for aircraft, had a record third quarter of 2026. Sales rose 28%, most of it from businesses it already owned, and it raised its forecasts for the year. The cost of growing by buying is showing, though: debt has roughly doubled and interest costs have nearly tripled. ¹

Against what analysts expected

Eaton's adjusted earnings per share of $3.68 came in about 4% above the $3.54 analysts expected on average, according to Nasdaq's earnings calendar. ¹²

The strong points

• Sales reached a record $8.9 billion, up 28% on a year ago, and 19 points of that growth came from businesses Eaton already owned rather than from purchases. ¹
• Earnings per share on the company's own adjusted measure, which leaves out acquisition costs and similar items, were a record $3.68, against $3.07 a year earlier. ¹
• Orders kept climbing: over the past twelve months they were up 51% in its electrical business outside the Americas, and its order books in electrical and aerospace are much larger than a year ago. ¹

The weak points

• Debt has roughly doubled since the end of last year, with long-term borrowing rising to about $17.8 billion, largely to pay for an acquisition. ¹
• Interest costs nearly tripled, to $198 million in the quarter from $67 million a year earlier. ¹
• The yearly write-down of the brands, technology and customer lists it bought more than doubled, to $314 million in the quarter. ¹

What the company expects

• Eaton raised its forecast for this year's sales growth from businesses it already owned to 13-15%, from 11-13% three months ago. ¹
• It raised its forecast for this year's adjusted earnings per share to $13.70-$13.80, from $13.40-$13.60, so the whole new range sits above the top of the old one. ¹

Our verdict on the quarter

A very strong report. Eaton raised its forecasts for both sales growth and profit for the year, earned more than analysts expected and grew sales by more than a quarter, with the heavier debt from its buying the main thing holding the picture back.

The results as published

• The results release itself
• The filing it came with (SEC)
• The previous results, for what it forecast then

Notes

1. Eaton's results release, 3 November 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 3 November 2026. ↩