Eaton Q2 sales beat on higher demand from data centers

Eaton

31/07/2026 11:42

Overview
US power management firm's Q2 sales rose 21%, beating analyst expectations
Adjusted EPS for Q2 was $3.15, beating analyst expectations
Company to separate Mobility business via Reverse Morris Trust, closing expected Q1 2027

Outlook
Eaton raises full-year 2026 organic growth guidance to 11-13%
Company expects 2026 adjusted EPS between $13.40 and $13.60
Eaton anticipates segment margins of 24.1-24.5% for full year 2026

Result Drivers
ORGANIC SALES GROWTH - Co said strong organic sales growth, especially in Electrical Americas and Electrical Global, drove record Q2 results
END-MARKET DEMAND - Co said broad end-market strength and robust demand, including from data centers, fueled growth
ORDERS AND BACKLOG - Co reported accelerating orders and backlog growth in Electrical and Aerospace segments

Company press release: ID:nBwbRdDmQa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$8.53 bln
$8.13 bln (18 Analysts)
Q2 Adjusted EPS
Beat
$3.15
$3.07 (19 Analysts)
Q2 EPS
 
$2.11
 
Q2 Adjusted Net Income
Beat
$1.23 bln
$1.20 bln (10 Analysts)
Q2 Net Income
 
$823 mln
 
Q2 Organic Growth
 
14.00%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 6 "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 $473.00, about 22.3% above its July 30 closing price of $386.89
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads
July 28 - Electrical equipment maker Hubbell lifts profit forecast amid demand from data centers
July 30 - Schneider Electric lifts 2026 outlook as data-centre demand surges
July 29 - Generac Q2 sales rise on data center demand

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.)