Changes in US stocks | Eaton (ETN.US) rose more than 7%, Q3 results exceeded expectations

The Zhitong Finance App learned that on Tuesday, Eaton (ETN.US) rose more than 7% to $393.72. According to the news, on November 3, the intelligent power management company Eaton announced its results for the third quarter of 2026. Sales for the third quarter reached a record high of US$8.947 billion (estimated US$8.506 billion), an increase of 28% over the previous year, with an organic growth rate of 19%. Adjusted earnings per share were record at $3.68, up from $3.07 previously; diluted earnings per share were $2.77. Driven by sales growth and capacity investment, profit margins in various business segments rose to a record 25.3%, exceeding expectations. Operating cash flow was USD 1.31 billion and free cash flow was USD 1.03 billion.

Over the past 12 months, rolling organic orders have increased by 39% in the Electric America region, 51% in the Electric region, and 20% in the Aerospace region. Order amounts for all three business segments have reached record highs. Total undelivered orders increased 46% in the electrical business and 33% in the aerospace business. Additionally, Eaton has agreed to acquire COL Group for 810 million euros (approximately US$921 million) to expand its power distribution business capabilities in Europe.

Looking ahead to the full year of 2026, Eaton expects an organic growth rate of 13%-15%, profit margins of 24.1%-24.5% for each business segment, and adjusted earnings per share of $13.70-13.80. For the fourth quarter of 2026, the company's performance guidelines include organic growth of 13%-15%, profit margins of 25.4%-25.8% for each business segment, and adjusted earnings per share of $4.05-4.15.