Eaton's Q2 revenue jumps 21.4% to $8.53B, but net income falls 16.4% on acquisition costs and margin pressure

Filed July 31, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 5, 2025 · ~1 min read

Key Changes

• high

  Net income fell 16.4% to $821.0M and diluted EPS fell 15.9% to $2.11, driven by higher acquisition charges, interest expense, and intangible amortization.

  MD&A: Net income verify on EDGAR →
• high

  Gross margin compressed 350 basis points to 33.5%, with commodity and wage inflation hitting 390 bps, partially offset by higher sales.

  MD&A: Gross margin verify on EDGAR →
• high

  Eaton plans to spin off its Mobility segment and merge it with Dana in a Reverse Morris Trust, expected to close in Q1 2027; Eaton shareholders to own at least 50.1% of the combined company.

  MD&A: Mobility spin-off verify on EDGAR →