Eaton Financials
This page shows Eaton (ETN) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Eaton’s cash-generative operating model converts margin gains into distributable cash without heavy reinvestment or much extra leverage.
As sales expanded, revenue added$4.3B while free cash flow added$686M , so growth translated into meaningfully more spendable cash rather than just bigger working balances. With gross margin hovering near38.0% and capex still below$1B , the company shows low capital intensity: extra gross profit does not need much physical reinvestment to remain productive.
Cash on hand was only
Goodwill stood at
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Eaton's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Eaton's revenue grew 10.3% year-over-year to $27.4B, a solid pace of expansion. This earns a growth score of 48/100.
Eaton carries a low D/E ratio of 0.51, meaning only $0.51 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 92/100, indicating a strong balance sheet with room for future borrowing.
Eaton's current ratio of 1.32 is below the typical benchmark, resulting in a score of 22/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Eaton has a free cash flow margin of 12.9%, earning a moderate score of 58/100. The company generates positive cash flow after capital investments, but with room for improvement.
Eaton's ROE of 21.0% shows moderate profitability relative to equity, earning a score of 56/100. This is up from 20.5% the prior year.
Eaton passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Eaton generates $1.09 in operating cash flow ($4.5B OCF vs $4.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Eaton generated $27.4B in revenue in fiscal year 2025. This represents an increase of 10.3% from the prior year.
Eaton reported $4.1B in net income in fiscal year 2025. This represents an increase of 7.7% from the prior year.
Eaton earned $10.45 per diluted share (EPS) in fiscal year 2025. This represents an increase of 10.0% from the prior year.
Cash & Balance Sheet
Eaton generated $3.6B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 1.0% from the prior year.
Eaton held $622.0M in cash against $9.9B in long-term debt as of fiscal year 2025.
Eaton paid $4.16 per share in dividends in fiscal year 2025. This represents an increase of 10.6% from the prior year.
Eaton had 388M shares outstanding in fiscal year 2025. This represents a decrease of 1.0% from the prior year.
Margins & Returns
Eaton's gross margin was 37.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.6 percentage points from the prior year.
Eaton's net profit margin was 14.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.4 percentage points from the prior year.
Eaton's ROE was 21.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.5 percentage points from the prior year.
Capital Allocation
Eaton invested $797.0M in research and development in fiscal year 2025. This represents an increase of 0.4% from the prior year.
Eaton spent $1.9B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 25.3% from the prior year.
Eaton invested $919.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 13.7% from the prior year.
ETN Income Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $7.5B+5.6% | $7.1B+1.0% | $7.0B-0.6% | $7.0B+10.2% | $6.4B+2.2% | $6.2B-1.7% | $6.3B-0.1% | $6.3B |
| Cost of Revenue | $4.8B+7.7% | $4.5B+3.3% | $4.3B-2.7% | $4.4B+12.7% | $3.9B+3.1% | $3.8B-2.3% | $3.9B-1.0% | $3.9B |
| Gross Profit | $2.7B+2.1% | $2.6B-2.9% | $2.7B+3.0% | $2.6B+6.1% | $2.4B+0.7% | $2.4B-0.7% | $2.4B+1.5% | $2.4B |
| R&D Expenses | $211.0M+3.4% | $204.0M+0.5% | $203.0M+5.7% | $192.0M-3.0% | $198.0M-2.0% | $202.0M-2.4% | $207.0M+5.6% | $196.0M |
| SG&A Expenses | $1.3B+25.8% | $1.0B-8.7% | $1.1B-3.8% | $1.1B+9.6% | $1.0B+4.5% | $1.0B-2.4% | $1.0B+0.7% | $1.0B |
| Operating Income | $922.0M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Interest Expense | $106.0M+51.4% | $70.0M+4.5% | $67.0M-5.6% | $71.0M+115.2% | $33.0M-21.4% | $42.0M+44.8% | $29.0M0.0% | $29.0M |
| Income Tax | $240.0M+48.1% | $162.0M-38.6% | $264.0M+30.0% | $203.0M-4.2% | $212.0M+8.7% | $195.0M+1.0% | $193.0M-4.0% | $201.0M |
| Net Income | $866.0M-23.4% | $1.1B+12.0% | $1.0B+2.9% | $982.0M+1.9% | $964.0M-0.7% | $971.0M-3.8% | $1.0B+1.6% | $993.0M |
| EPS (Diluted) | $2.22 | N/A | $2.59+3.2% | $2.51+2.4% | $2.45 | N/A | $2.53+2.0% | $2.48 |
ETN Balance Sheet
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $55.1B+33.5% | $41.3B+1.5% | $40.6B+0.4% | $40.5B+3.3% | $39.2B+2.1% | $38.4B-2.2% | $39.2B-0.4% | $39.4B |
| Current Assets | $14.0B+13.4% | $12.4B+1.8% | $12.1B+2.0% | $11.9B-4.3% | $12.4B+5.4% | $11.8B-2.9% | $12.2B-4.0% | $12.7B |
| Cash & Equivalents | $565.0M-9.2% | $622.0M+89.6% | $328.0M-17.6% | $398.0M-77.6% | $1.8B+220.2% | $555.0M+17.3% | $473.0M-12.4% | $540.0M |
| Inventory | $5.1B+9.0% | $4.7B+2.3% | $4.6B+0.7% | $4.6B+4.3% | $4.4B+3.9% | $4.2B+1.2% | $4.2B+5.4% | $4.0B |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $21.4B+35.7% | $15.8B-0.2% | $15.8B+0.1% | $15.8B+6.3% | $14.9B+0.9% | $14.7B-2.2% | $15.0B+1.3% | $14.8B |
| Total Liabilities | $35.4B+62.0% | $21.8B+0.1% | $21.8B-0.4% | $21.9B+5.8% | $20.7B+4.1% | $19.9B-1.1% | $20.1B-0.2% | $20.2B |
| Current Liabilities | $11.7B+25.3% | $9.4B-1.1% | $9.5B-1.3% | $9.6B+0.8% | $9.5B+21.2% | $7.9B-1.1% | $7.9B-2.2% | $8.1B |
| Long-Term Debt | $18.6B+88.2% | $9.9B0.0% | $9.9B+0.1% | $9.9B+6.6% | $9.3B+1.3% | $9.2B-2.6% | $9.4B-4.5% | $9.8B |
| Total Equity | $19.7B+1.5% | $19.4B+3.1% | $18.8B+1.3% | $18.6B+0.5% | $18.5B+0.1% | $18.5B-3.3% | $19.1B-0.5% | $19.2B |
| Retained Earnings | $11.1B+4.1% | $10.7B+5.3% | $10.2B+2.5% | $9.9B-1.2% | $10.0B-0.5% | $10.1B-2.6% | $10.4B-2.4% | $10.6B |
ETN Cash Flow Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $507.0M-74.2% | $2.0B+45.4% | $1.4B+47.2% | $918.0M+285.7% | $238.0M-85.1% | $1.6B+22.0% | $1.3B+38.4% | $946.0M |
| Capital Expenditures | $193.0M-50.8% | $392.0M+120.2% | $178.0M-11.9% | $202.0M+37.4% | $147.0M-42.4% | $255.0M+39.3% | $183.0M-2.1% | $187.0M |
| Free Cash Flow | $314.0M-80.0% | $1.6B+34.1% | $1.2B+63.8% | $716.0M+686.8% | $91.0M-93.2% | $1.3B+19.2% | $1.1B+48.4% | $759.0M |
| Investing Cash Flow | -$11.4B-3477.0% | -$318.0M-8.5% | -$293.0M+83.0% | -$1.7B-239.7% | $1.2B+555.0% | -$271.0M-153.0% | $511.0M+193.9% | -$544.0M |
| Financing Cash Flow | $10.8B+893.2% | -$1.4B-22.1% | -$1.1B-146.1% | -$453.0M-85.7% | -$244.0M+80.4% | -$1.2B+32.9% | -$1.9B-511.6% | -$303.0M |
| Dividends Paid | $415.0M+2.7% | $404.0M0.0% | $404.0M-4.0% | $421.0M+6.0% | $397.0M+7.3% | $370.0M-1.1% | $374.0M-3.6% | $388.0M |
| Share Buybacks | $615.0M+218.7% | $193.0M-46.7% | $362.0M-47.7% | $692.0M+12.5% | $615.0M-29.9% | $877.0M0.0% | $877.0M+46.2% | $600.0M |
ETN Financial Ratios
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 35.6%-1.2pp | 36.8%-1.5pp | 38.3%+1.3pp | 37.0%-1.4pp | 38.4%-0.6pp | 38.9%+0.4pp | 38.6%+0.6pp | 38.0% |
| Operating Margin | 12.4% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Margin | 11.6%-4.4pp | 16.0%+1.6pp | 14.4%+0.5pp | 14.0%-1.2pp | 15.1%-0.4pp | 15.6%-0.3pp | 15.9%+0.3pp | 15.6% |
| Return on Equity | 4.4%-1.4pp | 5.8%+0.5pp | 5.4%+0.1pp | 5.3%+0.1pp | 5.2%-0.0pp | 5.3%-0.0pp | 5.3%+0.1pp | 5.2% |
| Return on Assets | 1.6%-1.2pp | 2.7%+0.3pp | 2.5%+0.1pp | 2.4%-0.0pp | 2.5%-0.1pp | 2.5%-0.0pp | 2.6%+0.1pp | 2.5% |
| Current Ratio | 1.19-0.1 | 1.32+0.0 | 1.28+0.0 | 1.24-0.1 | 1.31-0.2 | 1.50-0.0 | 1.53-0.0 | 1.56 |
| Debt-to-Equity | 0.94+0.4 | 0.51-0.0 | 0.530.0 | 0.53+0.0 | 0.500.0 | 0.490.0 | 0.49-0.0 | 0.51 |
| FCF Margin | 4.2%-18.1pp | 22.3%+5.5pp | 16.8%+6.6pp | 10.2%+8.8pp | 1.4%-20.1pp | 21.5%+3.8pp | 17.8%+5.8pp | 11.9% |
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Frequently Asked Questions
What is Eaton's annual revenue?
Eaton (ETN) reported $27.4B in total revenue for fiscal year 2025. This represents a 10.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Eaton's revenue growing?
Eaton (ETN) revenue grew by 10.3% year-over-year, from $24.9B to $27.4B in fiscal year 2025.
Is Eaton profitable?
Yes, Eaton (ETN) reported a net income of $4.1B in fiscal year 2025, with a net profit margin of 14.9%.
How much debt does Eaton have?
As of fiscal year 2025, Eaton (ETN) had $622.0M in cash and equivalents against $9.9B in long-term debt.
What is Eaton's gross margin?
Eaton (ETN) had a gross margin of 37.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Eaton's net profit margin?
Eaton (ETN) had a net profit margin of 14.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Eaton pay dividends?
Yes, Eaton (ETN) paid $4.16 per share in dividends during fiscal year 2025.
What is Eaton's return on equity (ROE)?
Eaton (ETN) has a return on equity of 21.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Eaton's free cash flow?
Eaton (ETN) generated $3.6B in free cash flow during fiscal year 2025. This represents a 1.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Eaton's operating cash flow?
Eaton (ETN) generated $4.5B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Eaton's total assets?
Eaton (ETN) had $41.3B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Eaton's capital expenditures?
Eaton (ETN) invested $919.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Eaton spend on research and development?
Eaton (ETN) invested $797.0M in research and development during fiscal year 2025.
What is Eaton's current ratio?
Eaton (ETN) had a current ratio of 1.32 as of fiscal year 2025, which is considered adequate.
What is Eaton's debt-to-equity ratio?
Eaton (ETN) had a debt-to-equity ratio of 0.51 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Eaton's return on assets (ROA)?
Eaton (ETN) had a return on assets of 9.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Eaton's Piotroski F-Score?
Eaton (ETN) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Eaton's earnings high quality?
Eaton (ETN) has an earnings quality ratio of 1.09x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Eaton?
Eaton (ETN) scores 46 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.