Upside case
Bull case
$706+67.5%
ETN would need investors to value it at roughly 53x earnings — about 21x more generous than today's 32x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Eaton Corporation plc (ETN) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
39
analysts
25 bullish · 0 bearish · 39 covering ETN
Strong Buy
0
Buy
25
Hold
14
Sell
0
Strong Sell
0
Consensus Target
$417
-1.2% vs today
Scenario Range
$338 – $706
Model bear to bull value window
Coverage
39
Published analyst ratings
Valuation Context
31.6x
Forward P/E · Market cap $163.8B
ETN price targets
Three scenarios for where ETN stock could go
Current
~$422
Confidence
57 / 100
Updated
Jun 18, 2026
Where we are now
Current · $422
Bear
$338
Base
$536
Bull
$706
Market caseClosest to today
Base case
$536+27.1%
At 40x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$338-19.9%
If investor confidence fades or macro conditions deteriorate, a 6x multiple contraction could push ETN down roughly 20% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Eaton Corporation plc
ETN · NYSEIndustrialsIndustrial - MachineryDecember year-end
Eaton is a global power management company that designs and manufactures electrical components, systems, and services for industrial, commercial, and aerospace applications. It generates revenue primarily through its Electrical Americas segment (~45% of sales), Electrical Global segment (~30%), and Aerospace segment (~15%), with the remainder from its Vehicle and eMobility divisions. The company's competitive advantage lies in its deep expertise in power management across multiple end markets—particularly in electrical infrastructure where its products are mission-critical and difficult to replace.
Market Cap
$163.8B
Revenue TTM
$28.5B
Net Income TTM
$4.0B
Net Margin
14.0%
ETN Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
58%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.95/$2.93
Revenue
$7.0B/$6.9B
Q4 2025
EPS
$3.07/$3.05
Revenue
$7.0B/$7.1B
Q1 2026
EPS
$3.33/$3.31
Revenue
$7.1B/$7.1B
Q2 2026
EPS
$2.81/$2.73
Revenue
$7.5B/$7.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.95/$2.93 | +0.7% | $7.0B/$6.9B | +1.7% |
| Q4 2025 | $3.07/$3.05 | +0.7% | $7.0B/$7.1B | -1.2% |
| Q1 2026 | $3.33/$3.31 | +0.6% | $7.1B/$7.1B | -0.5% |
| Q2 2026 | $2.81/$2.73 | +2.9% | $7.5B/$7.1B | +4.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$31.6B
+10.7% YoY
FY2
$34.9B
+10.6% YoY
EPS Outlook
FY1
$12.43
+21.2% YoY
FY2
$14.33
+15.2% YoY
Trailing FCF (TTM)$4.7B
FCF Margin: 16.5%
Next Earnings
August 4, 2026
Expected EPS
$3.07
Expected Revenue
$8.2B
ETN beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
ETN Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $27.5B
Product Mix
Latest annual revenue by segment or product family
Electrical Americas Segment
48.3%
+16.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
62.4%
+13.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Electrical Americas Segment is the largest disclosed segment at 48.3% of FY 2025 revenue, up 16.1% YoY.
UNITED STATES is the largest reported region at 62.4%, up 13.0% YoY.
ETN Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Premium mostly justified
Fair value est. $383 — implies -9.3% from today's price.
Premium to Fair Value
9.3%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ETN
40.3x
vs
S&P 500
24.4x
+65% premium
vs Industrials Trailing P/E
ETN
40.3x
vs
Industrials
25.6x
+58% premium
vs ETN 5Y Avg P/E
Today
40.3x
vs
5Y Average
30.7x
+31% premium
Forward PE
31.6x
S&P 500
18.8x
+68%
Industrials
21.2x
+49%
5Y Avg
—
—
Trailing PE
40.3x
S&P 500
24.4x
+65%
Industrials
25.6x
+58%
5Y Avg
30.7x
+31%
PEG Ratio
1.64x
S&P 500
1.66x
-1%
Industrials
1.65x
-0%
5Y Avg
—
—
EV/EBITDA
29.2x
S&P 500
15.2x
+92%
Industrials
13.9x
+110%
5Y Avg
21.2x
+37%
Price/FCF
36.6x
S&P 500
20.7x
+77%
Industrials
20.0x
+83%
5Y Avg
35.1x
+4%
Price/Sales
6.0x
S&P 500
3.1x
+93%
Industrials
1.6x
+282%
5Y Avg
4.1x
+45%
Dividend Yield
0.99%
S&P 500
1.91%
-48%
Industrials
1.21%
-19%
5Y Avg
1.54%
-36%
| Metric | ETN | S&P 500 | Industrials | 5Y Avg ETN |
|---|---|---|---|---|
| Forward PE | 31.6x | 18.8x+68% | 21.2x+49% | — |
| Trailing PE | 40.3x | 24.4x+65% | 25.6x+58% | 30.7x+31% |
| PEG Ratio | 1.64x | 1.66x | 1.65x | — |
| EV/EBITDA | 29.2x | 15.2x+92% | 13.9x+110% | 21.2x+37% |
| Price/FCF | 36.6x | 20.7x+77% | 20.0x+83% | 35.1x |
| Price/Sales | 6.0x | 3.1x+93% | 1.6x+282% | 4.1x+45% |
| Dividend Yield | 0.99% | 1.91% | 1.21% | 1.54% |
ETN trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolETN Financial Health
Verdict
Strong
ETN generates $4.7B in free cash flow at a 16.5% margin — 13.6% ROIC signals a durable competitive advantage · returns 2.1% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$28.5B
Revenue Growth
TTM vs prior year
+12.7%
Gross Margin
Gross profit as a share of revenue
36.9%
Operating Margin
Operating income divided by revenue
18.1%
Net Margin
Net income divided by revenue
14.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$10.25
Free Cash Flow (TTM)
Cash generation after capex
$4.7B
FCF Margin
FCF as share of revenue — the primary cash quality signal
16.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
13.6%
ROA
Return on assets, trailing twelve months
9.0%
Cash & Equivalents
Liquid assets on the balance sheet
$622M
Net Debt
Total debt minus cash
$10.5B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.2× FCF
~2.2 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
20.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.1%
Dividend
1.0%
Buyback
1.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.9B
Dividend / Share
Annualized trailing dividend per share
$4.17
Payout Ratio
Share of earnings distributed as dividends
39.8%
Shares Outstanding
Declining as buybacks retire shares
388M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageETN Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 17, 2026
High Risk
Market Sentiment
Eaton's stock is sensitive to broader market trends, including risk-off sessions and Treasury yield movements, which can pressure valuations.
Medium
Sector Exposure
The company's heavy reliance on AI/data-center electrical spending makes it vulnerable to shifts in technology investment cycles.
Medium
Integration Risks
The acquisition and integration of Tripp Lite poses execution risks that could impact financial performance.
Lower
Regulatory Impact
Changes in policies like the Inflation Reduction Act (IRA) could affect Eaton's electrical segment margins.
Medium
Valuation Pressure
Elevated expectations around hyperscale data center demand may lead to valuation de-rating if growth slows.
Lower
Operational Margins
Durability of Electrical Americas margins could be challenged by input cost volatility or competitive pressures.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ETN Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 17, 2026
Expanding market moat
Eaton Corporation plc has a growing competitive advantage, particularly in electrical distribution and control products, as highlighted in its moat analysis and bull scenarios.
Intelligent power management focus
The company is dedicated to intelligent power management, improving quality of life and protecting the environment, which aligns with global sustainability trends.
Strong institutional confidence
Institutional investors show high conviction in ETN, evidenced by significant options activity and short put strategies reflecting near-term support for the stock.
Global market presence
With operations across the U.S., Canada, Latin America, Europe, and Asia Pacific, Eaton benefits from diversified revenue streams and a broad customer base.
Product replacement opportunities
Eaton's electrical products can replace legacy Westinghouse products in commercial and industrial applications, creating significant market opportunities.
Revenue growth trajectory
The company reported nearly $27.4 billion in revenues in 2025, demonstrating strong financial performance and growth potential.
Diverse power solutions portfolio
Eaton offers a comprehensive range of products and services, including automation, circuit protection, power distribution, and power quality solutions.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ETN Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$421.77
52W Range Position
89%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$311.92
+35.2% from the low
52-Week High
$435.43
-3.1% from the high
1 Month
+10.45%
3 Month
+16.98%
YTD
+28.9%
1 Year
+26.0%
3Y CAGR
+29.5%
5Y CAGR
+24.8%
10Y CAGR
+21.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ETN vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
31.6x
vs 23.2x median
+37% above peer median
Revenue Growth
+10.7%
vs +3.4% median
+210% above peer median
Net Margin
14.0%
vs 12.4% median
+13% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ETN ETN Eaton Corporation plc | $163.8B | 31.6x | +10.7% | 14.0% | Buy | -1.2% |
EMR EMR Emerson Electric Co. | $84.4B | 23.2x | +3.4% | 13.3% | Buy | +7.7% |
HON HON Honeywell International Inc. | $145.1B | 21.8x | +5.7% | 11.2% | Buy | +9.0% |
ROK ROK Rockwell Automation, Inc. | $53.2B | 36.6x | +1.5% | 12.4% | Hold | +0.3% |
PH PH Parker-Hannifin Corporation | $120.3B | 30.5x | +3.1% | 16.6% | Buy | +9.9% |
IR IR Ingersoll Rand Inc. | $30.5B | 22.2x | +7.1% | 7.5% | Buy | +20.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
ETN Dividend and Capital Return
ETN returns 2.1% annually — 0.99% through dividends and 1.1% through buybacks.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.1%
Dividend + buyback return per year
Buyback Yield
1.1%
Dividend Yield
0.99%
Payout Ratio
39.8%
How ETN Splits Its Return
Div 0.99%
Buyback 1.1%
Dividend 0.99%Buybacks 1.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$4.17
Growth Streak
Consecutive years of dividend increases
16Y
3Y Div CAGR
8.7%
5Y Div CAGR
7.3%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.9B
Estimated Shares Retired
4M
Approx. Share Reduction
1.1%
Shares Outstanding
Current diluted share count from the screening snapshot
388M
At 1.1%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $2.20 | — | — | — |
| 2025 | $4.16 | +10.6% | 1.5% | 2.8% |
| 2024 | $3.76 | +9.3% | 1.9% | 3.0% |
| 2023 | $3.44 | +6.2% | 0.0% | 1.4% |
| 2022 | $3.24 | +6.6% | 0.5% | 2.5% |
FAQ
7 questionsETN Investor Questions
Common questions answered from live analyst data and company financials.
01Is Eaton Corporation plc (ETN) stock a buy or sell in 2026?
Eaton Corporation plc (ETN) is rated Buy by Wall Street analysts as of 2026. Of 39 analysts covering the stock, 25 rate it Buy or Strong Buy, 14 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $417, implying -1.2% from the current price of $422. The bear case scenario is $338 and the bull case is $706.
02What is the ETN stock price target for 2026?
The Wall Street consensus price target for ETN is $417 based on 39 analyst estimates. The high-end target is $500 (+18.5% from today), and the low-end target is $295 (-30.1%). The base case model target is $536.
03Is Eaton Corporation plc (ETN) stock overvalued in 2026?
ETN trades at 31.6x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals premium mostly justified. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Eaton Corporation plc (ETN) stock in 2026?
The primary risks for ETN in 2026 are: (1) Market Sentiment — Eaton's stock is sensitive to broader market trends, including risk-off sessions and Treasury yield movements, which can pressure valuations. (2) Sector Exposure — The company's heavy reliance on AI/data-center electrical spending makes it vulnerable to shifts in technology investment cycles. (3) Integration Risks — The acquisition and integration of Tripp Lite poses execution risks that could impact financial performance. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Eaton Corporation plc's revenue and earnings forecast?
Analyst consensus estimates ETN will report consensus revenue of $31.6B (+10.7% year-over-year) and EPS of $12.43 (+21.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $34.9B in revenue.
06When does Eaton Corporation plc (ETN) report its next earnings?
Eaton Corporation plc is expected to report its next earnings on approximately 2026-08-04. Consensus expects EPS of $3.07 and revenue of $8.2B. Over recent quarters, ETN has beaten EPS estimates 100% of the time.
07How much free cash flow does Eaton Corporation plc generate?
Eaton Corporation plc (ETN) generated $4.7B in free cash flow over the trailing twelve months — a free cash flow margin of 16.5%. ETN returns capital to shareholders through dividends (1.0% yield) and share repurchases ($1.9B TTM).