Eaton’s Q4 EPS Matches On $7.06B Revenue While Q1 Guidance Underwhelms
Eaton reported Q4 adjusted EPS of $3.33, matching consensus on record revenue of $7.06 billion, up 13.1% year-over-year, and free cash flow of $1.6 billion, a 17% increase. The company guided Q1 2026 EPS to $2.65–2.85 versus a $3.01 consensus, sending shares down about 3%.
1. Altrius Capital Management Reduces ETN Position
In the third quarter, Altrius Capital Management Inc trimmed its stake in Eaton Corporation, PLC by 20.3%, selling 5,961 shares and ending the period with 23,336 shares. This divestiture reduced Eaton’s weighting within the fund to approximately 2.0%, making it Altrius’s 15th largest holding. At quarter end, the remaining position was valued at $8.73 million. Institutional ownership of Eaton stands at 82.97%, reflecting broad participation by hedge funds and other large investors.
2. Analyst Ratings and Price Target Revisions
Several brokerages updated their outlook on Eaton during the past two quarters. Mizuho raised its target from $385.00 to $425.00 and maintained an outperform rating, while Sanford C. Bernstein reaffirmed its outperform stance. JPMorgan Chase lowered its target from $440.00 to $406.00 but kept an overweight rating. Morgan Stanley reiterated an overweight rating with a $425.00 objective. Overall, among 23 covering analysts, two assign a strong buy, 14 a buy and seven a hold, yielding an average Moderate Buy consensus and an average price target of $387.20.
3. Q4 Performance, Margins and 2026 Guidance
In its fourth quarter, Eaton reported adjusted EPS of $3.33, matching consensus, on revenue of $7.06 billion, up 13.1% year-over-year. Organic growth contributed 9%, acquisitions 2% and currency 2%. Segment margins reached a record 24.9%, up 20 basis points year-over-year. Operating cash flow was $2.0 billion, and free cash flow $1.6 billion, improvements of 23% and 17% respectively. For Q1 2026, Eaton guided to adjusted EPS of $2.65–2.85 and organic sales growth of 5–7%, with segment margins expected between 22.2% and 22.6%. Full-year 2026 EPS guidance is set at 13.00–13.50.
4. Insider and Institutional Movements
Director Gerald Johnson doubled his personal stake by purchasing 200 shares at an average of $339.89 each in November, increasing his holding to 400 shares valued at approximately $136,000. Smaller institutions also adjusted positions: WFA of San Diego LLC initiated a $36,000 stake, Grey Fox Wealth Advisors LLC added $70,000, Cloud Capital Management LLC $72,000, and SOA Wealth Advisors LLC boosted its stake by 47.1% to $75,000. Company insiders collectively hold 0.30% of the outstanding shares.