Eaton (ETN) Q2 2026: Sales +21%, GAAP EPS -16% on Boyd Deal
Eaton just posted the biggest quarter in its history — $8,531 million of net sales, which the company itself calls a record, and a record second-quarter adjusted EPS of $3.15 — and the reported profit line still went backwards. Sales rose 21% from $7,028 million, with 14 percentage points of that coming from organic growth, meaning growth from the existing business, before any acquisition. Eaton's own bridge splits the 21% into 14 points organic, 7 points acquisitions and zero from currency. Yet net income attributable to shareholders fell 16% to $821 million, and diluted EPS dropped from $2.51 to $2.11. The entire gap traces to how Eaton paid for its $9.55 billion purchase of Boyd Thermal: a debt-funded balance sheet and a wave of non-cash purchase accounting.
1. Consolidated Balance Sheet
1-1. Principal asset movements
Note that Eaton's balance sheet comparison is June 30, 2026 against December 31, 2025 — a six-month move, not a year-over-year one. Two acquisitions closed inside that window.
| Item | Dec 31, 2025 ($M) | Jun 30, 2026 ($M) | Change % |
|---|---|---|---|
| Cash | 622 | 483 | -22.3% |
| Accounts receivable - net | 5,387 | 6,673 | +23.9% |
| Inventory | 4,721 | 5,417 | +14.7% |
| Net property, plant and equipment | 4,316 | 4,702 | +8.9% |
| Goodwill | 15,769 | 20,229 | +28.3% |
| Other intangible assets | 5,054 | 12,611 | +149.5% |
| Total assets | 41,251 | 56,181 | +36.2% |
The balance sheet grew by $14,930 million in six months. Intangible assets alone account for $7,557 million of that, and goodwill another $4,460 million. Together the two intangible lines now stand at $32,840 million, or 58.5% of total assets, against total equity of $20,299 million.
