Eaton (NYSE:ETN) shares tumbled Tuesday after the power management leader issued a fiscal 2026 forecast that trailed analyst expectations, despite delivering record-breaking fourth-quarter results fueled by the global energy transition.
The Dublin-based company reported adjusted fourth-quarter earnings of $3.33 per share, in line with the Bloomberg consensus and a record for the period.
Revenue rose 13% to a quarterly high of $7.1 billion, matching expectations, as organic sales growth of 9% reflected surging demand for electrical infrastructure and aerospace components.
Segment margins also hit a fourth-quarter record of 24.9%.
Despite the strong finish to 2025, investors focused on a conservative 2026 outlook.
Eaton forecast full-year adjusted earnings of $13 to $13.50 per share, the midpoint of which sits below the $13.52 analyst consensus.
For the first quarter of 2026, the company expects adjusted EPS between $2.65 and $2.85, missing the $3.01 Wall Street target.