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Eaton to Report Q2 Earnings: What's in Store for the Stock?

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Key Takeaways

  • {\"0\":\"ETN is expected to post Q2 revenues of $6.93B, up 9.09% year over year, and EPS of $2.92, up 6.96%.\",\"1\":\"Innovation, AI data center demand and megatrend tailwinds have been driving ETN\'s top-line growth.\",\"2\":\"Strong order wins, a growing backlog and share repurchases are likely to have boosted ETN\'s Q2 performance.\"}

Eaton Corporation (ETN - Free Report) is expected to report an improvement in both the top and bottom lines when it reports second-quarter 2025 results on Aug. 5, before market open. The company reported an earnings surprise of 0.74% in the first quarter.

ETN’s Q2 Earnings Expectation

The Zacks Consensus Estimate for ETN’s revenues is pegged at $6.93 billion, indicating a 9.09% increase from the year-ago reported figure.
 
The consensus estimate for earnings is pegged at $2.92 per share, indicating a 6.96% increase from the year-ago reported figure.

Factors Likely to Have Driven ETN’s Q2 Earnings Performance

Eaton’s ongoing investment in research and development strengthens the quality of its existing products while supporting the development of new solutions for customers. This steady stream of innovation enables ETN to secure more orders and expand its market footprint, ultimately driving earnings growth. For the second quarter, the company expects organic revenues to increase 6-8%.

Electrification, global megatrends, the energy transition and reindustrialization have been driving growth across roughly 75% of Eaton’s end markets. These factors are likely to have boosted its second-quarter performance. Surging demand from power-intensive AI data centers has been creating new opportunities, further supporting earnings.

Eaton’s broad product portfolio continues to drive strong order wins, steadily increasing its backlog. This growing backlog offers a reliable pipeline of future revenues, contributing to the company’s solid performance. Eaton’s expertise in meeting essential power management demands has fueled organic growth across several segments. This is likely to support its second-quarter results.

The ongoing repurchase of shares, through free cash flow, is also likely to have had a positive impact on the second-quarter earnings of the company.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Eaton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below.

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC Price and EPS Surprise

Eaton Corporation, PLC price-eps-surprise | Eaton Corporation, PLC Quote

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

ETN’s Earnings ESP: Eaton has an Earnings ESP of +0.33%.

ETN’s Zacks Rank: Eaton currently carries a Zacks Rank of 3.

Other Stocks With the Favorable Combination

Here are some other stocks in the same sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.

Atmus Filtration Technologies Inc. (ATMU - Free Report) has an Earnings ESP of +9.64% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ESAB Corporation. (ESAB - Free Report) has an Earnings ESP of +2.43% and a Zacks Rank of 2 at present.
 
Trimble (TRMB - Free Report) currently has an Earnings ESP of +0.64% and a Zacks Rank of 2.

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