Eaton $ETN jumps 7.3% as Q2 adjusted EPS hits $3.15

Eaton $ETN closed 7.3% higher at $415.20 on July 31 after the company posted Q2 adjusted EPS of $3.15 and record quarterly sales of $8.5B. The move cleared the finance filter because the single-stock reaction exceeded the 8% intraday threshold at the open, with Yahoo Finance market data showing a $420.00 high versus a $386.89 prior close.

The primary document is Eaton's SEC-filed Exhibit 99.1 earnings release. It shows Q2 earnings per share of $2.11, adjusted EPS of $3.15 after acquisition, amortization and restructuring items, and sales up 21% from Q2 2025. Organic sales grew 14%, above the high end of company guidance, while acquisitions added another 7 percentage points.

Metric | Q2 2026 | Market stake
Adjusted EPS | $3.15 | Second-quarter record
Sales | $8.5B | +21% year over year
Organic sales | +14% | Above guidance range
Segment margin | 23.1% | 10 bps above high end of guidance
Free cash flow | $874M | +22% year over year

The order book explains why the report mattered beyond one quarter. Eaton said 12-month rolling average orders rose 41% in Electrical Americas, 33% in Electrical Global and 17% in Aerospace. Backlog grew 43% in the Electrical sector and 28% in Aerospace, numbers that keep the AI data-center and grid-electrification theme tied to contracted demand rather than just valuation momentum.

Guidance also moved. Eaton now expects 2026 EPS of $10.36-$10.56 and adjusted EPS of $13.40-$13.60, with the adjusted midpoint up 12% from 2025. Management also highlighted the planned separation of the Mobility business through a Reverse Morris Trust transaction, expected to close in Q1 2027 and to lift organic growth and margins after closing.

The next checks are Q3 order conversion, Electrical Americas margin sustainability after a 190 bps sequential improvement, and whether data-center demand remains broad enough to support the raised organic growth guide. The stock reaction makes the release market-moving; the backlog and guidance decide whether the move can be defended by operating data.

Not investment advice. Verify all figures with primary sources before acting.