While revenue growth accelerated to 16.8% in 2026Q1, operating margins faced headwinds, contracting to 15.7% as SG&A expenses outpaced gross profit gains.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 28.52B | 27.45B | 24.88B | 23.2B | 20.75B | 19.63B | 17.86B | 21.39B | 21.61B | 20.4B | 19.75B | 20.86B | 22.55B | 22.05B | 16.31B | 16.05B | 13.71B | 11.87B | 15.38B | 13.03B | 12.37B | 11.02B | 9.82B | 8.06B | 7.21B | 7.3B | 8.31B | 8.4B | 6.63B | 7.56B | 6.96B |
| Revenue Growth % | 12.68% | 10.33% | 7.25% | 11.78% | 5.73% | 9.91% | -16.51% | -1.01% | 5.91% | 3.33% | -5.31% | -7.52% | 2.3% | 35.16% | 1.63% | 17.02% | 15.51% | -22.78% | 17.98% | 5.36% | 12.26% | 12.24% | 21.78% | 11.82% | -1.23% | -12.16% | -1.11% | 26.82% | -12.4% | 8.65% | 2.04% |
| Cost of Goods Sold | 18B | 17.13B | 15.38B | 14.76B | 13.85B | 13.31B | 12.41B | 14.34B | 14.49B | 13.74B | 13.4B | 14.31B | 15.65B | 15.37B | 11.44B | 11.26B | 9.64B | 8.76B | 11.19B | 9.38B | 9.05B | 7.94B | 7.04B | 5.9B | 5.27B | 5.5B | 5.63B | 5.6B | 4.43B | 5.11B | 4.84B |
| COGS % of Revenue | - | 62.41% | 61.82% | 63.64% | 66.72% | 67.83% | 69.51% | 67.03% | 67.08% | 67.33% | 67.86% | 68.61% | 69.4% | 69.72% | 70.14% | 70.17% | 70.28% | 73.78% | 72.78% | 71.99% | 73.16% | 72.02% | 71.72% | 73.15% | 73.13% | 75.39% | 67.76% | 66.65% | 66.84% | 67.62% | 69.6% |
| Gross Profit | 10.52B | 10.32B | 9.5B | 8.43B | 6.91B | 6.32B | 5.45B | 7.05B | 7.11B | 6.67B | 6.35B | 6.55B | 6.9B | 6.68B | 4.87B | 4.79B | 4.08B | 3.11B | 4.18B | 3.65B | 3.32B | 3.08B | 2.78B | 2.16B | 1.94B | 1.8B | 2.68B | 2.8B | 2.2B | 2.45B | 2.12B |
| Gross Margin % | 36.89% | 37.59% | 38.18% | 36.36% | 33.28% | 32.17% | 30.49% | 32.97% | 32.92% | 32.67% | 32.14% | 31.39% | 30.6% | 30.28% | 29.86% | 29.83% | 29.72% | 26.22% | 27.22% | 28.01% | 26.84% | 27.98% | 28.28% | 26.85% | 26.87% | 24.61% | 32.24% | 33.35% | 33.16% | 32.38% | 30.4% |
| Gross Profit Growth % | - | 8.61% | 12.64% | 22.11% | 9.36% | 15.98% | -22.79% | -0.87% | 6.74% | 5.03% | -3.07% | -5.12% | 3.36% | 37.08% | 1.71% | 17.47% | 30.93% | -25.62% | 14.63% | 9.97% | 7.69% | 11.06% | 28.28% | 11.72% | 7.85% | -32.96% | -4.39% | 27.54% | -10.29% | 15.74% | 1.98% |
| Operating Expenses | 5.34B | 5.08B | 4.63B | 4.44B | 3.67B | 3.44B | 3.12B | 3.99B | 4.13B | 3.99B | 3.88B | 4.04B | 4.3B | 4.37B | 3.11B | 3.14B | 2.87B | 2.56B | 2.83B | 2.41B | 2.12B | 2.04B | 1.85B | 1.57B | 1.42B | 1.45B | 2.03B | 2.07B | 1.72B | 1.75B | 1.58B |
| OpEx % of Revenue | - | 18.5% | 18.62% | 19.13% | 17.66% | 17.55% | 17.49% | 18.66% | 19.12% | 19.55% | 19.64% | 19.4% | 19.08% | 19.81% | 19.07% | 19.57% | 20.93% | 21.6% | 18.38% | 18.48% | 17.15% | 18.5% | 18.82% | 19.53% | 19.7% | 19.84% | 24.43% | 24.67% | 25.89% | 23.13% | 22.73% |
| Selling, General & Admin | 4.53B | 4.28B | 3.84B | 3.68B | 3B | 2.83B | 2.57B | 3.38B | 3.55B | 3.41B | 3.29B | 3.42B | 3.66B | 3.72B | 2.67B | 2.72B | 2.45B | 2.17B | 2.41B | 2.07B | 1.8B | 1.75B | 1.59B | 1.35B | 1.22B | 1.22B | 1.3B | 1.32B | 1.05B | 1.09B | 995M |
| SG&A % of Revenue | - | 15.6% | 15.43% | 15.88% | 14.46% | 14.41% | 14.41% | 15.83% | 16.42% | 16.69% | 16.66% | 16.4% | 16.21% | 16.89% | 16.38% | 16.97% | 17.83% | 18.28% | 15.67% | 15.91% | 14.55% | 15.91% | 16.17% | 16.76% | 16.88% | 16.71% | 15.63% | 15.69% | 15.85% | 14.39% | 14.29% |
| Research & Development | 809M | 796M | 794M | 754M | 665M | 616M | 551M | 606M | 584M | 584M | 589M | 625M | 647M | 644M | 439M | 417M | 425M | 395M | 417M | 335M | 321M | 287M | 261M | 223M | 203M | 228M | 269M | 314M | 334M | 319M | 267M |
| R&D % of Revenue | - | 2.9% | 3.19% | 3.25% | 3.2% | 3.14% | 3.09% | 2.83% | 2.7% | 2.86% | 2.98% | 3% | 2.87% | 2.92% | 2.69% | 2.6% | 3.1% | 3.33% | 2.71% | 2.57% | 2.6% | 2.6% | 2.66% | 2.77% | 2.82% | 3.12% | 3.24% | 3.74% | 5.04% | 4.22% | 3.84% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 462M | 441M | 331M | 342M | 320M |
| Operating Income | 5.17B | 5.23B | 4.87B | 4B | 3.24B | 2.87B | 2.32B | 3.06B | 2.98B | 2.67B | 2.47B | 2.5B | 2.6B | 2.31B | 1.76B | 1.65B | 1.21B | 548M | 1.36B | 1.24B | 1.2B | 1.04B | 928M | 590M | 517M | 348M | 649M | 729M | 482M | 700M | 534M |
| Operating Margin % | 18.13% | 19.05% | 19.56% | 17.22% | 15.62% | 14.62% | 13% | 14.31% | 13.8% | 13.11% | 12.49% | 12% | 11.52% | 10.47% | 10.78% | 10.26% | 8.79% | 4.62% | 8.84% | 9.54% | 9.69% | 9.48% | 9.45% | 7.32% | 7.17% | 4.77% | 7.81% | 8.68% | 7.28% | 9.26% | 7.67% |
| Operating Income Growth % | - | 7.46% | 21.8% | 23.26% | 12.93% | 23.65% | -24.18% | 2.65% | 11.48% | 8.43% | -1.4% | -3.66% | 12.47% | 31.27% | 6.8% | 36.68% | 119.89% | -59.68% | 9.33% | 3.67% | 14.74% | 12.61% | 57.29% | 14.12% | 48.56% | -46.38% | -10.97% | 51.24% | -31.14% | 31.09% | -16.56% |
| EBITDA | 5.95B | 5.98B | 5.79B | 4.92B | 4.2B | 3.79B | 3.13B | 3.94B | 3.88B | 3.59B | 3.4B | 3.43B | 3.58B | 3.31B | 2.36B | 2.2B | 1.76B | 1.12B | 1.95B | 1.71B | 1.63B | 1.45B | 1.33B | 984M | 893M | 797M | 1.11B | 1.17B | 813M | 1.04B | 854M |
| EBITDA Margin % | 20.85% | 21.79% | 23.26% | 21.21% | 20.21% | 19.32% | 17.54% | 18.44% | 17.98% | 17.59% | 17.2% | 16.43% | 15.87% | 15% | 14.45% | 13.73% | 12.8% | 9.44% | 12.69% | 13.14% | 13.2% | 13.2% | 13.53% | 12.21% | 12.39% | 10.92% | 13.37% | 13.93% | 12.27% | 13.78% | 12.27% |
| EBITDA Growth % | 0.12% | 3.34% | 17.6% | 17.31% | 10.63% | 21.07% | -20.61% | 1.54% | 8.25% | 5.68% | -0.9% | -4.27% | 8.29% | 40.26% | 6.99% | 25.46% | 56.65% | -42.54% | 13.96% | 4.84% | 12.31% | 9.49% | 34.96% | 10.19% | 12.05% | -28.26% | -5.04% | 43.91% | -21.98% | 22.01% | -7.27% |
| D&A (Non-Cash Add-back) | 774M | 751M | 921M | 926M | 954M | 922M | 811M | 884M | 903M | 914M | 929M | 925M | 983M | 997M | 598M | 556M | 551M | 573M | 592M | 469M | 434M | 409M | 400M | 394M | 376M | 449M | 462M | 441M | 331M | 342M | 320M |
| EBIT | 5.14B | 5.2B | 4.71B | 4.04B | 3B | 3.04B | 1.97B | 2.83B | 2.69B | 3.61B | 2.35B | 2.38B | 1.99B | 2.15B | 1.46B | 1.67B | 1.17B | 453M | 1.28B | 1.19B | 1.09B | 1.04B | 859M | 590M | 517M | 348M | 649M | 703M | 604M | 700M | 534M |
| Net Interest Income | -314M | -264M | -144M | -208M | -88M | -144M | -221M | -236M | -271M | -246M | -233M | -232M | -226M | -270M | -208M | -118M | -136M | -150M | -157M | -147M | -104M | -90M | -78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 314M | 264M | 144M | 208M | 88M | 144M | 221M | 236M | 271M | 246M | 233M | 232M | 226M | 270M | 208M | 118M | 136M | 150M | 157M | 147M | 104M | 90M | 78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -301M | -297M | -300M | -168M | -330M | 26M | -575M | -470M | -558M | 693M | -349M | -357M | -836M | -425M | -508M | -94M | -169M | -245M | -231M | -202M | -210M | -57M | -147M | -82M | -118M | -70M | -97M | 214M | 134M | -32M | -49M |
| Pretax Income | 4.87B | 4.93B | 4.57B | 3.83B | 2.91B | 2.9B | 1.75B | 2.59B | 2.42B | 3.37B | 2.13B | 2.15B | 1.76B | 1.88B | 1.25B | 1.55B | 1.04B | 303M | 1.13B | 1.04B | 989M | 996M | 781M | 508M | 399M | 278M | 552M | 963M | 485M | 668M | 485M |
| Pretax Margin % | 17.08% | 17.97% | 18.35% | 16.5% | 14.03% | 14.75% | 9.78% | 12.11% | 11.22% | 16.51% | 10.77% | 10.29% | 7.81% | 8.55% | 7.67% | 9.68% | 7.55% | 2.55% | 7.34% | 7.99% | 8% | 9.04% | 7.96% | 6.3% | 5.53% | 3.81% | 6.64% | 11.46% | 7.32% | 8.83% | 6.97% |
| Income Tax | 877M | 840M | 768M | 604M | 445M | 750M | 331M | 378M | 278M | 382M | 202M | 164M | -42M | 11M | 31M | 201M | 99M | -82M | 73M | 82M | 77M | 191M | 133M | 122M | 118M | 109M | 189M | 346M | 136M | 204M | 136M |
| Effective Tax Rate % | 18% | 17.03% | 16.82% | 15.78% | 15.29% | 25.9% | 18.96% | 14.59% | 11.47% | 11.34% | 9.5% | 7.65% | -2.39% | 0.58% | 2.48% | 12.94% | 9.56% | -27.06% | 6.47% | 7.88% | 7.79% | 19.18% | 17.03% | 24.02% | 29.57% | 39.21% | 34.24% | 35.93% | 28.04% | 30.54% | 28.04% |
| Net Income | 3.99B | 4.09B | 3.79B | 3.22B | 2.46B | 2.14B | 1.41B | 2.21B | 2.15B | 2.98B | 1.92B | 1.98B | 1.79B | 1.86B | 1.22B | 1.35B | 929M | 383M | 1.06B | 994M | 950M | 805M | 648M | 386M | 281M | 169M | 453M | 617M | 349M | 410M | 349M |
| Net Margin % | 13.99% | 14.9% | 15.25% | 13.87% | 11.86% | 10.92% | 7.9% | 10.34% | 9.93% | 14.63% | 9.73% | 9.49% | 7.95% | 8.44% | 7.46% | 8.41% | 6.77% | 3.23% | 6.88% | 7.63% | 7.68% | 7.31% | 6.6% | 4.79% | 3.9% | 2.32% | 5.45% | 7.34% | 5.27% | 5.42% | 5.01% |
| Net Income Growth % | 1.37% | 7.78% | 17.9% | 30.71% | 14.83% | 52.06% | -36.23% | 3.08% | -28.14% | 55.31% | -2.88% | 10.37% | -3.65% | 52.92% | -9.85% | 45.32% | 142.56% | -63.8% | 6.44% | 4.63% | 18.01% | 24.23% | 67.88% | 37.37% | 66.27% | -62.69% | -26.58% | 76.79% | -14.88% | 17.48% | -12.53% |
| Net Income (Continuing) | 3.99B | 4.09B | 3.8B | 3.22B | 2.47B | 2.15B | 1.42B | 2.21B | 2.15B | 2.99B | 1.92B | 1.98B | 1.8B | 1.87B | 1.22B | 1.35B | 937M | 385M | 1.05B | 959M | 912M | 799M | 648M | 386M | 281M | 169M | 363M | 603M | 430M | 464M | 349M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 44M | 44M | 43M | 33M | 38M | 38M | 43M | 51M | 35M | 37M | 44M | 45M | 53M | 72M | 42M | 23M | 41M | 41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.25 | 10.46 | 9.50 | 8.02 | 6.14 | 5.34 | 3.49 | 5.25 | 4.91 | 6.68 | 4.20 | 4.22 | 3.76 | 3.90 | 3.46 | 3.93 | 2.73 | 1.14 | 3.26 | 3.31 | 3.11 | 2.62 | 2.07 | 1.28 | 0.98 | 0.60 | 1.56 | 2.09 | 1.20 | 1.31 | 1.13 |
| EPS Growth % | 3.23% | 10.11% | 18.45% | 30.62% | 14.98% | 53.01% | -33.52% | 6.92% | -26.5% | 59.05% | -0.47% | 12.23% | -3.59% | 12.72% | -11.96% | 43.96% | 139.47% | -65.03% | -1.51% | 6.43% | 18.7% | 26.57% | 61.72% | 30.61% | 63.33% | -61.54% | -25.36% | 74.17% | -8.4% | 15.93% | -11.72% |
| EPS (Basic) | - | 10.49 | 9.54 | 8.06 | 6.18 | 5.38 | 3.51 | 5.28 | 4.94 | 6.71 | 4.21 | 4.23 | 3.78 | 3.93 | 3.54 | 3.98 | 2.76 | 1.16 | 3.30 | 3.38 | 3.16 | 2.68 | 2.12 | 1.31 | 1.00 | 0.61 | 1.58 | 2.13 | 1.22 | 1.34 | 1.13 |
| Diluted Shares Outstanding | 389.2M | 389.5M | 399.4M | 401.1M | 400.8M | 401.6M | 404M | 420.8M | 436.9M | 447M | 456.5M | 467.1M | 476.8M | 476.7M | 350.9M | 342.8M | 339.5M | 335.8M | 324.6M | 300.6M | 305.8M | 308M | 314.2M | 301M | 286.8M | 282M | 290.4M | 294.8M | 290.8M | 312.8M | 310M |
| Basic Shares Outstanding | 388.2M | 388.2M | 397.6M | 399.1M | 398.7M | 398.7M | 402.2M | 419M | 434.3M | 444.5M | 455M | 465.5M | 474.1M | 473.5M | 347.8M | 338.3M | 335.5M | 332.7M | 320.4M | 294.6M | 300.4M | 300.4M | 306.2M | 295.8M | 286.8M | 277.6M | 287.2M | 294.8M | 285.6M | 307.2M | 309.6M |
| Dividend Payout Ratio | - | 39.77% | 39.54% | 42.85% | 52.76% | 56.86% | 83.33% | 54.32% | 53.57% | 35.78% | 53.95% | 51.84% | 51.81% | 42.77% | 42.07% | 34.22% | 39.07% | 87.21% | 30.25% | 25.25% | 23.16% | 22.86% | 25.15% | 34.72% | 43.77% | 71.01% | 28.04% | 20.75% | 36.1% | 32.44% | 35.53% |
Margin Compression from Inflation
According to recent financial disclosures, ETN's revenue growth has accelerated to 16.8% in 2026Q1, marking a significant departure from the mid-single-digit growth observed in early 2024, likely driven by sustained demand for electrical infrastructure and data center power solutions across the North American market.
The recent revenue surge suggests that the company is successfully capturing secular tailwinds from grid modernization and AI-driven power density requirements. Investors should monitor whether this growth trajectory remains durable or if it reflects a temporary pull-forward of large-scale project demand.
As reported in quarterly filings, ETN's gross margin contracted to 35.6% in 2026Q1 from a peak of 38.9% in 2024Q4, indicating that rising input costs or shifts in product mix may be challenging the company's historical ability to maintain premium pricing power.
While the company has historically demonstrated strong value-added engineering, the recent compression warrants further investigation into whether this is a cyclical response to commodity inflation or a structural shift. The decline in operating margin to 15.7% suggests that inflationary pressures are beginning to permeate the cost structure more deeply than in previous periods.
Based on the provided income statement data, ETN's operating income scaled to $1.2B in 2026Q1, yet the operating margin fell to 15.7%, suggesting that SG&A expenses are currently outpacing the growth in gross profit and limiting the company's traditional operating leverage efficiency.
The divergence between revenue growth and operating margin expansion implies that the company may be incurring higher costs to support its current project backlog. Analysts should assess whether these elevated SG&A levels are temporary investments in capacity or a sign of diminishing returns on incremental revenue.
Data from the most recent quarter reveals a 9.4% decline in EPS despite double-digit revenue growth, which may indicate to skeptics that the company's current expansion is becoming increasingly capital-intensive and less efficient at converting top-line gains into bottom-line shareholder value.
The disconnect between revenue acceleration and earnings contraction suggests that the company's cost structure may be more sensitive to inflationary inputs than previously assumed. Investors should be cautious of the potential for further margin erosion if the company cannot effectively pass through these rising costs to its customer base.
Quick answers to the most common questions about buying ETN stock.
For fiscal year 2025, Eaton Corporation plc (ETN) reported total revenue of $27.45B. This represents a 294.3% increase compared to $6.96B in 1996.
Eaton Corporation plc (ETN) is profitable, generating $4.09B in net income for the fiscal year ending 2025 with a net profit margin of 14.9%.
Eaton Corporation plc (ETN) reported an operating income of $5.23B, resulting in an operating profit margin of 19.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Eaton Corporation plc (ETN) generated $10.32B in gross profit for the year, representing a gross profit margin of 37.6%. This demonstrates the company's core pricing power and production efficiency.