It’s been a good week for Eaton Corporation plc (NYSE:ETN) shareholders, because the company has just released its latest full-year results, and the shares gained 5.1% to US$365. Eaton reported in line with analyst predictions, delivering revenues of US$27b and statutory earnings per share of US$10.45, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the 24 analysts covering Eaton are now predicting revenues of US$30.1b in 2026. If met, this would reflect a meaningful 9.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 18% to US$12.40. In the lead-up to this report, the analysts had been modelling revenues of US$30.0b and earnings per share (EPS) of US$12.48 in 2026. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.
Check out our latest analysis for Eaton
The analysts reconfirmed their price target of US$402, showing that the business is executing well and in line with expectations. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Eaton at US$552 per share, while the most bearish prices it at US$321. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Eaton’shistorical trends, as the 9.6% annualised revenue growth to the end of 2026 is roughly in line with the 8.4% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. So although Eaton is expected to maintain its revenue growth rate, it’s only growing at about the rate of the wider industry.
The most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Eaton going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Eaton that we have uncovered.
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