ETN US S&P 500Russell 1000 Earnings call · transcribed from the recording
Eaton Corporation (ETN) · Q3 2026 results and valuation
Share price: $360.62 · 2026-11-11
Eaton Corporation is a power management company that provides electrical products and systems for the data center, utility, industrial, commercial, residential, aerospace, and mobility markets. The company operates in over 180 countries, serving customers across the electrical power value chain. Source: 10-K annual report (2026-02-26)
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 31 Jul 2026
Net income up 31.0% on the previous quarter, guidance raised. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+31.0%
Net income vs Q2 2026
Guidance raised
Net income 1.08B vs 823.0M
Revenue +4.9%
Against the same quarter last year (Q3 2025) it is +6.7% — part of the move on last quarter is seasonal.
2 · How management spoke
Very upbeat
Among the most upbeat of all company calls
Answers to analysts: very upbeat, but clearly less so than the script.
The step down under questioning is smaller than last call.
3 · What stood out
Guidance
Eaton expects full-year EPS to be between $13.70 and $13.80.
Valuation
Is Eaton Corporation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 9.8% growth a year (3-year revenue growth), the model's fair value is $183.79 a share — the stock trades 96% above it. Today's price assumes 18.0% growth a year.
Current price
$360.62
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.0% for 10 yrs
Fair value / share
$183.79
Buy below
$137.85
Price vs fair value
Overvalued 96%
Price vs buy-below price
Overvalued 162%
Read between the lines
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Key theme
I think if you look at the legacy electrical global business Eaton has, it's accelerating specifically across the complete…
Source quote
“So, I think if you look at the legacy electrical global business we have, it's accelerating specifically across the complete... So, Boyd actually adds 31 points of growth to a total of 58% growth and will become organic in March 27. And Boyd adds significant organic growth on top of it.”
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Guidance ↑
This moment is why Eaton is raising Boyd's full-year revenue outlook again, the third increase this year, to $1.9 billion.
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Figure
Revenue reached a record of $8.9 billion, up 28%.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 95% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Demand strength is also reflected in the backlog, which saw three times growth year over year, providing strong visibility into future growth and reinforcing confidence in the long-term outlook.”
“Growth in electrical global was even stronger with 27% organic growth and strength across all end markets.”
“Organic sales growth accelerated to 22%, driven by strengthened data centers up 54%, along with strong growth in machine OEM and commercial and institutional.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 8.95B | 8.53B | +4.9% | 6.99B | +28.0% |
| Gross profit | 3.10B | 2.85B | +8.8% | 2.67B | +16.1% |
| Operating income | 1.37B | 1.14B | +19.8% | 1.27B | +7.5% |
| Net income | 1.08B | 823.0M | +31.0% | 1.01B | +6.7% |
| EPS | 2.77 | 2.11 | +31.3% | 2.59 | +6.9% |
| P/E today 34.1 | 42.9 | 43.4 | −0.5 | 37.5 | +5.4 |
Topics
Most discussed now
- New Eaton is increasingly seeing the strategic benefits of combining Boyd with ETHN, Boyd's industry-leading thermal management capabilities…
- Eaton's agenda today includes opening remarks by Paulo.
- Eaton's strategy is working, and Electrical America is a strong proof point.
- Accelerating orders and growing backlogs are a clear proof point that its customers are choosing ETHN because Eaton brings...
- From a year-over-year perspective, the majority of the margin decline was driven by temporary commodity cost...
Faded since Q2 2026
- Fading Eaton also posted Q2 record cash flow with operating cash flow up 23% over prior year.
- Fading These many paths for sustainable growth give us confidence to deliver continued differentiated growth in 2026 and beyond.
- Fading If you look also the traditional markets Eaton had for this segment like machine OEM are also up more than...
- Fading The other thing I want to say, if you pull all these elements together, the acquisitions Eaton made, how it...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
Andrea Trabacchin was appointed as Senior Vice President and Controller with an annual base salary of $485,000 and a target short-term incentive of 60% of his base salary.
- Results of operations · SEC 8-K
Eaton Corporation plc issued a press release on July 31, 2026, announcing its financial results for the quarter ended June 30, 2026.
- Regulation FD disclosure; Other events · SEC 8-K
Eaton Corporation entered into an agreement to separate its Mobility business and combine it with Dana Incorporated in a transaction where Eaton will receive approximately $1.1 billion in cash.
- Results of operations · SEC 8-K
Eaton Corporation plc issued its financial results for the quarter ended March 31, 2026, on May 5, 2026.
- Shareholder vote results · SEC 8-K · routine
- Agreement terminated; New financial obligation · SEC 8-K