Eaton Q2 sales beat on higher demand from data centers

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

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

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(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.)