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Eaton Posts Record $8.5B Q2 Revenue, Adjusted EPS of $3.15 Beats Estimates

Eaton's second-quarter 2026 revenue rose 21% year-over-year to a record $8.5 billion. Adjusted EPS of $3.15 beat market expectations by 8 cents, while segment operating margin of 23.1% topped the high end of guidance.

Justin Jeon·August 1, 2026 at 03:04·5 min read

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AIKey Summary

Eaton's Q2 2026 revenue hit a record $8.5B, with adjusted EPS of $3.15 beating estimates
Shares jumped 7.50% to $415.89 after the earnings release

Eaton shares rose 7.50% from the previous day to $415.89 on August 1, as the company disclosed in an SEC 8-K filing that second-quarter revenue hit a record $8.5 billion, with adjusted EPS of $3.15 beating market expectations.

📊 Price at time of writing (August 1, 2026, 03:01 KST)
$415.89 ▲ +7.50%
≈ ₩598,050 (KRW/USD 1,438)

Q2 Earnings at a Glance

Eaton's second-quarter revenue rose 21% year-over-year, with organic growth contributing 14 percentage points and M&A effects adding 7 percentage points. Segment operating margin came in at 23.1%, topping the high end of the company's guidance by 0.1 percentage point, though it was down 0.8 percentage point from a year earlier. The company also announced an agreement to spin off its Mobility segment into a separate company, with the deal expected to close in the first quarter of 2027.

Revenue: $8.5 billion, +21% year-over-year (14pp organic growth + 7pp from M&A)
EPS: $2.11 (GAAP); adjusted EPS of $3.15 beat the consensus estimate of $3.07 by 8 cents
Operating cash flow: $1.1 billion (+23% YoY) / Free cash flow: $874 million (+22%)

Next Quarter Outlook

The company projected third-quarter revenue growth of 13.5% to 15.5% year-over-year, with segment operating margin expected at 24.6% to 25.0%. Q3 EPS is forecast at $2.77 to $2.87, with adjusted EPS at $3.46 to $3.56. The company raised its full-year organic revenue growth forecast to 11%–13%. Full-year EPS is guided at $10.36 to $10.56, with adjusted EPS at $13.40 to $13.60 — a 12% increase at the midpoint on an adjusted basis. CEO Paulo Ruiz said, "Second-quarter organic growth drove solid performance in both revenue and earnings." He added, "In particular, margins improved sequentially in Electrical Americas, and we're seeing broad-based demand strength across all segments, including data centers."

Market Reaction

Eaton shares traded at $415.89, up 7.50% from the previous day, after the earnings release. Investing.com reported that adjusted EPS beat the consensus estimate by 8 cents and revenue also topped expectations. StockTitan reported that Electrical Global's order backlog surged 103% while new orders grew 33%.

Segment Breakdown

Electrical Americas: Revenue of $4.0 billion, a record, with 18% organic growth
Order backlog (YoY): Electrical segment overall +43%, Aerospace +28%
Trailing-12-month average new order growth: Electrical Americas +41%, Electrical Global +33%, Aerospace +17%

This article was automatically generated based on the original SEC 8-K filing and foreign media reports, with the goal of delivering key data promptly after the announcement. Readers are advised to verify the company's official filing before making trading decisions. Prices reflect the time of writing and may differ from current levels.

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Frequently Asked Questions

Did Eaton's Q2 results beat market expectations?

Yes. According to Investing.com, adjusted EPS of $3.15 came in 8 cents above the consensus estimate, and revenue of $8.5 billion also exceeded expectations.

What exactly is adjusted EPS?

It's net income divided by share count, excluding one-time costs and certain accounting items. Eaton calculates it by excluding intangible asset amortization, acquisition/divestiture-related costs, and restructuring costs.

Why is Eaton spinning off its Mobility business?

To focus on its higher-growth, higher-margin Electrical and Aerospace businesses. The company is pursuing the spin-off through a Reverse Morris Trust structure, expected to close in the first quarter of 2027. The specific deal size was not disclosed in the filing.

What's the outlook for Q3 and full-year results?

The company forecast Q3 adjusted EPS of $3.46 to $3.56 and full-year adjusted EPS of $13.40 to $13.60. It also raised its full-year organic revenue growth outlook to 11%–13%.