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ETN · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
Sales grew 21.4% to $8.5B — but almost none of it reached shareholders. The growth was bought: Boyd Thermal ($9.55B) and Ultra PCS ($1.53B) lifted revenue, doubled intangible amortization, tripled net interest expense to $201M and pushed the tax rate to 28.1%, so net income fell 16.2% and diluted EPS dropped to $2.11 from $2.51.
Net Income
$823M
down 16.2% y/y
Net Sales
$8,531M
up 21.4% y/y
Operating Income
$1,392M
up 10.8% y/y
Gross Profit
$2,855M
up 9.9% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Electrical Americas | $3,951 · +17.9% |
| Electrical Global | $2,517 · +43.6% |
| Aerospace | $1,222 · +13.1% |
| Mobility | $841 · −0.5% |
| Net Sales | $8,531 · +21.4% |
| Gross Profit ≈ | $2,855 · +9.9% · 33.5% margin, was 36.9% |
| Cost of Products Sold | $5,676 · +28.1% |
| Operating Income ≈ | $1,392 · +10.8% · 16.3% margin |
| Selling & Administrative | $1,236 · +7.6% |
| R&D | $227 · +18.2% |
| Pretax Income | $1,144 · −3.5% |
| Interest Expense, net | $201 · vs $71 · Boyd Thermal debt |
| Other Expense, net | $47 · vs $1 income |
| Net Income | $823 · −16.2% · $2.11 diluted EPS |
| Income Tax | $321 · +58.1% · 28.1% rate, was 17.2% |
Verdict: sales grew 21.4% to $8.5B — but almost none of it reached shareholders. The growth was bought: Boyd Thermal ($9.55B) and Ultra PCS ($1.53B) lifted revenue, doubled intangible amortization, tripled net interest expense to $201M and pushed the tax rate to 28.1%, so net income fell 16.2% and diluted EPS dropped to $2.11 from $2.51.
Acquisitions in the last 15 months: Fibrebond $1.43B (Apr 2025, Electrical Americas), Resilient $86M (Aug 2025), Ultra PCS $1.53B (Jan 2026, Aerospace), Boyd Thermal $9.55B (Mar 2026, Electrical Global). Mobility is planned for spin-off in Q1 2027.
Source and notation
* marks non-cash / ≈ estimated. Source: Eaton 10-Q for the quarter ended June 30, 2026 (SEC EDGAR).
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Chart: “ETN Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/etn/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/etn/q2-2026"><img src="https://whoreportstoday.com/t/etn/q2-2026/sankey.png" alt="ETN Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/etn/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/etn/q2-2026">ETN Q2 2026 earnings chart (Who Reports Today)</a>
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- Electrical Global almost caught up with Electrical Americas: sales +43.6% y/y, driven by the Boyd Thermal acquisition that closed in March 2026. Organic comparison across segments is therefore not meaningful this quarter.
- Mobility is the only shrinking segment (−0.5%), and inside it eMobility fell 13.7% to $157M. Eaton plans to spin Mobility off in the first quarter of 2027.
- Cost of products sold grew 28.1%, faster than the 21.4% sales increase, so gross margin slipped to 33.5% from 36.9% — acquired businesses carry lower margins.
- Net interest expense nearly tripled, from $71M to $201M: the debt raised in March 2026 to pay for Boyd Thermal.
- Intangible amortization from acquisitions doubled to $255M and sits in corporate, not in segment profit — which is why segment operating profit rose 17.4% while pre-tax income fell 3.5%.
- The effective tax rate jumped to 28.1% from 17.2%, on more income in higher-tax jurisdictions and withholding tax on funding the Boyd Thermal deal — the single biggest reason net income fell.
- "Other expense, net" of $353M in the corporate reconciliation is the aggregate of amortisation-adjacent and non-operating charges the company manages centrally; only $47M of it appears on the income statement's own "other expense" line.
- Aerospace is quietly strong: aftermarket sales +19.7% to $474M, the highest-margin part of that segment.
What distorts the picture in this report and what to watch beyond the headlines.
ETN — Eaton Corporation provides power management solutions for electrical, aerospace, and industrial markets worldwide.
The company is headquartered in Dublin, Ireland, and maintains significant operations in the United States.
Heads-up
- net income fell 16% y/y in Q2 2026
Net income for Q2 2026: $823M, −16% y/y. In the report's figures: costs grew faster than revenue: cost of products sold +28% y/y, income tax +58% y/y. Based on the Q2 2026 report.
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