Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Eaton Corp. plc, profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The analyzed period is characterized by a sustained expansion in profitability and capital efficiency from March 2022 through the first quarter of 2025, followed by a period of moderation and contraction in the subsequent quarters.
- Margin Performance
- Gross profit margin demonstrated a consistent upward trajectory for nearly three years, rising from 32.36% in March 2022 to a peak of 38.45% in March 2025. Following this peak, a gradual decline is observed, with the margin retreating to 36.89% by March 2026. Operating profit margin followed a similar growth pattern, increasing from 15.97% to a high of 18.98% in December 2025, before dropping to 18.16% in the final period. Net profit margin expanded from 11.21% to a peak of 15.55% in March 2025, subsequently declining to 13.99% by March 2026.
- Capital Efficiency and Returns
- Return on Equity (ROE) exhibited strong and steady growth, climbing from 13.35% in March 2022 to a peak of 21.27% in March 2025. While ROE remained elevated, it experienced a slight downward shift to 20.23% by March 2026. Return on Assets (ROA) mirrored this trend, rising from 6.30% to a peak of 10.04% in March 2025. However, ROA showed a more significant contraction in the final quarter, falling sharply to 7.24% by March 2026.
- Trend Correlation and Insights
- A strong positive correlation is observed between the expansion of gross margins and the improvement in ROE and ROA throughout the 2022–2025 window. The alignment of peak values across most metrics between December 2024 and March 2025 indicates a period of maximum operational efficiency. The subsequent simultaneous decline in all profitability ratios in early 2026 suggests a systemic transition, likely driven by increased costs or a decrease in asset utilization efficiency.
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Return on Sales
Return on Investment
Gross Profit Margin
Eaton Corp. plc, gross profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross profit | 2,652) | 2,598) | 2,675) | 2,597) | 2,447) | 2,429) | 2,446) | 2,410) | 2,218) | 2,235) | 2,196) | 2,119) | 1,884) | 1,838) | 1,768) | 1,707) | 1,574) | ||||||
| Net sales | 7,451) | 7,055) | 6,988) | 7,028) | 6,377) | 6,240) | 6,345) | 6,350) | 5,943) | 5,967) | 5,880) | 5,866) | 5,483) | 5,384) | 5,313) | 5,212) | 4,843) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 36.89% | 37.59% | 38.10% | 38.16% | 38.45% | 38.20% | 37.83% | 37.53% | 37.06% | 36.36% | 35.54% | 34.51% | 33.64% | 33.19% | 32.83% | 32.55% | 32.36% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 4.79% | 4.79% | 1.10% | -0.32% | -2.09% | -2.99% | 3.13% | 9.47% | 10.04% | 9.93% | 9.09% | 6.65% | 7.20% | 5.26% | -1.41% | 2.74% | 3.20% | ||||||
| Caterpillar Inc. | 29.79% | 30.05% | 31.65% | 32.64% | 33.92% | 34.49% | 34.33% | 34.29% | 33.59% | 33.04% | 31.71% | 30.44% | 28.74% | 26.91% | 26.14% | 25.52% | 25.71% | ||||||
| GE Aerospace | 31.25% | 31.55% | 32.16% | 31.98% | 31.87% | 30.79% | 27.00% | 24.74% | 22.97% | 21.95% | 23.26% | 23.29% | 24.24% | 24.55% | 24.52% | 25.22% | 24.26% | ||||||
| Honeywell International Inc. | 36.93% | 36.93% | 36.96% | 38.12% | 38.11% | 38.09% | 37.60% | 37.56% | 37.46% | 37.28% | 38.03% | 37.79% | 37.36% | 36.99% | 35.56% | 34.22% | 32.95% | ||||||
| Lockheed Martin Corp. | 9.82% | 10.15% | 8.16% | 8.16% | 10.11% | 9.75% | 11.97% | 11.91% | 12.10% | 12.55% | 12.54% | 12.70% | 12.74% | 12.56% | 12.99% | 13.39% | 13.36% | ||||||
| RTX Corp. | 20.21% | 20.08% | 20.13% | 20.05% | 19.53% | 19.09% | 19.21% | 16.38% | 17.01% | 17.54% | 17.36% | 20.43% | 20.53% | 20.38% | 20.49% | 20.17% | 19.94% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Gross profit margin = 100
× (Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × (2,652 + 2,598 + 2,675 + 2,597)
÷ (7,451 + 7,055 + 6,988 + 7,028)
= 36.89%
2 Click competitor name to see calculations.
The analysis reveals a prolonged period of margin expansion followed by a recent moderate contraction. Between March 2022 and December 2024, there was a consistent upward trajectory in the gross profit margin, which grew from 32.36% to a peak of 38.20%.
- Margin Expansion Phase
- From March 2022 through December 2024, the gross profit margin increased steadily. This growth occurred in tandem with a significant rise in net sales, which grew from 4,843 million USD to 6,240 million USD in that timeframe. The ability to increase the margin while scaling revenue suggests improved operational efficiency, successful price adjustments, or a favorable shift in product mix.
- Peak and Stabilization
- The gross profit margin reached its zenith in the period ending December 2024 at 38.20%. A period of relative stability followed through June 2025, where the margin remained consistently above 38%, indicating a plateau in the efficiency gains achieved during the prior growth phase.
- Recent Downward Trend
- Beginning in the second half of 2025, a gradual decline in the gross profit margin is observed. The margin decreased from 38.10% in June 2025 to 36.89% by March 2026. Notably, this contraction occurred despite net sales continuing to reach new highs, peaking at 7,451 million USD in March 2026. This divergence indicates that the cost of goods sold began increasing at a faster rate than net sales during the final four quarters of the analyzed period.
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Operating Profit Margin
Eaton Corp. plc, operating profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 1,172) | 1,385) | 1,367) | 1,256) | 1,201) | 1,224) | 1,211) | 1,193) | 1,004) | 1,078) | 1,060) | 946) | 801) | 875) | 790) | 711) | 643) | ||||||
| Net sales | 7,451) | 7,055) | 6,988) | 7,028) | 6,377) | 6,240) | 6,345) | 6,350) | 5,943) | 5,967) | 5,880) | 5,866) | 5,483) | 5,384) | 5,313) | 5,212) | 4,843) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 18.16% | 18.98% | 18.95% | 18.82% | 19.08% | 18.62% | 18.23% | 17.96% | 17.28% | 16.75% | 16.28% | 15.48% | 14.85% | 14.55% | 13.90% | 16.33% | 15.97% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 4.63% | 4.79% | -10.24% | -12.27% | -14.63% | -16.10% | -9.08% | -2.31% | -0.93% | -0.99% | -1.86% | -4.62% | -3.58% | -5.33% | -11.99% | -6.98% | -6.53% | ||||||
| Caterpillar Inc. | 17.38% | 17.43% | 18.68% | 19.31% | 20.29% | 21.30% | 21.33% | 21.55% | 21.58% | 20.30% | 18.13% | 16.97% | 14.94% | 13.97% | 14.56% | 13.81% | 13.87% | ||||||
| GE Aerospace | 25.05% | 26.03% | 26.24% | 25.57% | 25.46% | 23.29% | 16.88% | 13.80% | 10.44% | 8.49% | 8.08% | 6.92% | 7.40% | 6.05% | 7.05% | 8.12% | 7.31% | ||||||
| Honeywell International Inc. | 14.14% | 14.88% | 18.44% | 19.03% | 19.06% | 19.33% | 19.23% | 19.68% | 19.65% | 19.32% | 20.09% | 19.73% | 19.05% | 18.12% | 17.55% | 17.31% | 17.37% | ||||||
| Lockheed Martin Corp. | 9.88% | 10.30% | 8.31% | 8.29% | 10.24% | 9.87% | 12.08% | 11.98% | 12.20% | 12.59% | 12.57% | 12.80% | 12.78% | 12.65% | 13.15% | 13.47% | 13.50% | ||||||
| RTX Corp. | 10.87% | 10.50% | 10.25% | 9.95% | 8.20% | 8.10% | 7.94% | 3.94% | 5.32% | 5.17% | 4.79% | 8.63% | 8.73% | 8.07% | 7.93% | 7.81% | 7.75% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × (1,172 + 1,385 + 1,367 + 1,256)
÷ (7,451 + 7,055 + 6,988 + 7,028)
= 18.16%
2 Click competitor name to see calculations.
An analysis of the financial performance from March 31, 2022, to March 31, 2026, reveals a consistent upward trajectory in both top-line revenue and operational efficiency, despite a recent softening in margins in the final quarter.
- Revenue Growth Trends
- Net sales demonstrated sustained growth over the analyzed period, increasing from 4,843 million US dollars in March 2022 to 7,451 million US dollars by March 2026. A notable acceleration in sales occurred between March 2025 and June 2025, where revenue jumped from 6,377 million to 7,028 million US dollars, marking one of the most significant quarterly increases in the dataset.
- Operating Income Performance
- Operating income followed a generally positive trend, rising from 643 million US dollars in the first quarter of 2022 to a peak of 1,385 million US dollars in December 2025. Although growth was largely linear, periodic fluctuations were observed, specifically in March 2023 and March 2024, where operating income dipped slightly compared to the preceding December quarters. A more pronounced decline is evident in the final period, with income falling to 1,172 million US dollars in March 2026.
- Operating Profit Margin Evolution
- The operating profit margin exhibited a pattern of contraction followed by significant expansion and a final stabilization phase. After an initial dip to a low of 13.90% in September 2022, the margin entered a steady growth phase starting in early 2023. This expansion peaked at 19.08% in March 2025, reflecting improved cost management or pricing power relative to sales growth. However, from June 2025 through March 2026, the margin experienced a gradual decline, ending at 18.16%.
- Operational Efficiency Correlation
- Between 2023 and early 2025, operating income grew at a faster rate than net sales, resulting in the observed margin expansion. In contrast, the final quarter ending March 31, 2026, shows a divergence where net sales reached a period high of 7,451 million US dollars, yet operating income declined to 1,172 million US dollars. This divergence indicates a decrease in operational efficiency or an increase in operating expenses during the most recent period.
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Net Profit Margin
Eaton Corp. plc, net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Eaton ordinary shareholders | 866) | 1,131) | 1,010) | 982) | 964) | 971) | 1,009) | 993) | 821) | 945) | 891) | 744) | 638) | 722) | 607) | 601) | 532) | ||||||
| Net sales | 7,451) | 7,055) | 6,988) | 7,028) | 6,377) | 6,240) | 6,345) | 6,350) | 5,943) | 5,967) | 5,880) | 5,866) | 5,483) | 5,384) | 5,313) | 5,212) | 4,843) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 13.99% | 14.89% | 14.74% | 15.11% | 15.55% | 15.25% | 15.31% | 15.12% | 14.38% | 13.87% | 13.24% | 12.30% | 12.00% | 11.86% | 11.36% | 11.70% | 11.21% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 2.46% | 2.50% | -12.20% | -14.18% | -16.58% | -17.77% | -10.88% | -4.68% | -2.81% | -2.86% | -3.74% | -6.08% | -5.86% | -7.41% | -13.75% | -8.69% | -8.00% | ||||||
| Caterpillar Inc. | 14.06% | 13.89% | 15.17% | 15.83% | 16.63% | 17.59% | 17.15% | 17.46% | 17.65% | 16.18% | 14.35% | 13.53% | 12.10% | 11.85% | 13.70% | 13.19% | 13.02% | ||||||
| GE Aerospace | 19.21% | 20.57% | 19.99% | 20.43% | 19.41% | 18.67% | 14.28% | 9.25% | 5.96% | 14.68% | 15.08% | 13.91% | 12.35% | 0.31% | -8.10% | -6.18% | -6.70% | ||||||
| Honeywell International Inc. | 10.89% | 12.63% | 15.41% | 14.62% | 14.85% | 14.82% | 15.01% | 15.49% | 15.52% | 15.43% | 14.87% | 15.08% | 14.54% | 14.00% | 15.38% | 14.74% | 15.30% | ||||||
| Lockheed Martin Corp. | 6.38% | 6.69% | 5.73% | 5.85% | 7.66% | 7.51% | 9.36% | 9.48% | 9.73% | 10.24% | 10.29% | 10.48% | 8.60% | 8.69% | 9.07% | 7.33% | 9.45% | ||||||
| RTX Corp. | 8.03% | 7.60% | 7.67% | 7.35% | 5.63% | 5.91% | 5.97% | 3.12% | 4.90% | 4.64% | 4.76% | 7.88% | 8.08% | 7.75% | 6.76% | 6.84% | 6.47% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Net profit margin = 100
× (Net income attributable to Eaton ordinary shareholdersQ1 2026
+ Net income attributable to Eaton ordinary shareholdersQ4 2025
+ Net income attributable to Eaton ordinary shareholdersQ3 2025
+ Net income attributable to Eaton ordinary shareholdersQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × (866 + 1,131 + 1,010 + 982)
÷ (7,451 + 7,055 + 6,988 + 7,028)
= 13.99%
2 Click competitor name to see calculations.
The net profit margin exhibits a period of sustained expansion followed by a recent contraction. Between March 2022 and March 2025, the margin increased from 11.21% to a peak of 15.55%, reflecting a strong correlation between growing net sales and an accelerating rate of net income growth.
- Margin Expansion Phase (2022-2025)
- A consistent upward trend in profitability is observed from the first quarter of 2022 through the first quarter of 2025. During this period, net sales grew from 4,843 million to 6,377 million by the end of 2024, while net income rose from 532 million to 971 million. This indicates enhanced operational efficiency and successful cost management, allowing profit margins to climb steadily from 11.21% to 15.55%.
- Peak and Stabilization (2024-2025)
- The net profit margin reached its maximum threshold in March 2025 at 15.55%. This peak followed a period of relative stability throughout 2024, where margins fluctuated narrowly between 14.38% and 15.31%, suggesting that profitability had reached an optimal plateau relative to the scale of operations during that timeframe.
- Recent Margin Compression (2025-2026)
- A divergent trend emerges in the final quarters analyzed. Despite net sales reaching their highest recorded level of 7,451 million in March 2026, net income declined to 866 million. This resulted in a contraction of the net profit margin to 13.99%, down from the 15.55% peak. The decrease indicates that the expenses associated with generating increased revenue grew at a faster rate than the revenue itself, leading to diminished bottom-line efficiency.
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Return on Equity (ROE)
Eaton Corp. plc, ROE calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Eaton ordinary shareholders | 866) | 1,131) | 1,010) | 982) | 964) | 971) | 1,009) | 993) | 821) | 945) | 891) | 744) | 638) | 722) | 607) | 601) | 532) | ||||||
| Total Eaton shareholders’ equity | 19,721) | 19,425) | 18,843) | 18,606) | 18,506) | 18,488) | 19,117) | 19,219) | 19,292) | 19,036) | 18,383) | 17,953) | 17,449) | 17,038) | 16,068) | 16,380) | 16,620) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 20.23% | 21.04% | 20.84% | 21.10% | 21.27% | 20.52% | 19.71% | 18.99% | 17.63% | 16.90% | 16.29% | 15.10% | 14.72% | 14.45% | 14.26% | 14.12% | 13.35% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 37.88% | 40.98% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 50.53% | 41.67% | 44.89% | 50.57% | 55.01% | 55.37% | 55.04% | 64.26% | 63.77% | 53.02% | 44.48% | 45.85% | 39.18% | 42.25% | 47.28% | 42.96% | 38.07% | ||||||
| GE Aerospace | 47.79% | 46.60% | 42.86% | 40.54% | 36.34% | 33.90% | 33.11% | 25.51% | 11.77% | 34.63% | 35.27% | 30.77% | 27.72% | 0.62% | -18.56% | -12.75% | -12.20% | ||||||
| Honeywell International Inc. | 30.18% | 34.01% | 36.52% | 35.52% | 32.59% | 30.64% | 32.65% | 34.13% | 34.81% | 35.68% | 31.42% | 31.52% | 30.89% | 29.74% | 30.36% | 28.96% | 28.58% | ||||||
| Lockheed Martin Corp. | 64.00% | 74.65% | 67.95% | 78.82% | 82.34% | 84.26% | 92.71% | 109.09% | 101.89% | 101.24% | 75.11% | 76.41% | 58.97% | 61.86% | 49.05% | 41.16% | 62.10% | ||||||
| RTX Corp. | 10.95% | 10.32% | 10.22% | 9.85% | 7.48% | 7.94% | 7.72% | 3.83% | 5.75% | 5.34% | 4.59% | 7.67% | 7.61% | 7.16% | 6.36% | 6.34% | 5.79% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
ROE = 100
× (Net income attributable to Eaton ordinary shareholdersQ1 2026
+ Net income attributable to Eaton ordinary shareholdersQ4 2025
+ Net income attributable to Eaton ordinary shareholdersQ3 2025
+ Net income attributable to Eaton ordinary shareholdersQ2 2025)
÷ Total Eaton shareholders’ equity
= 100 × (866 + 1,131 + 1,010 + 982)
÷ 19,721 = 20.23%
2 Click competitor name to see calculations.
The financial performance from March 2022 through March 2026 is characterized by a sustained improvement in profitability and capital efficiency. A consistent upward trajectory in the Return on Equity (ROE) indicates a strengthening ability to generate profits relative to the shareholders' investment.
- Net Income Growth
- Net income attributable to ordinary shareholders showed significant expansion over the analyzed period. Starting at 532 million USD in March 2022, earnings grew steadily to a peak of 1,131 million USD by December 2025. Although a decline to 866 million USD is observed in the quarter ending March 31, 2026, the overall trend reflects a substantial increase in absolute profitability.
- Equity Evolution
- Total shareholders' equity experienced a gradual increase, rising from 16,620 million USD in March 2022 to 19,721 million USD by March 2026. This growth was generally stable, with a brief period of contraction observed in the latter half of 2024, before returning to an upward trend through 2025 and early 2026.
- Return on Equity (ROE) Trends
- The ROE climbed consistently from 13.35% in March 2022 to a peak of 21.27% in March 2025. The acceleration in the ROE percentage, particularly between 2023 and 2024, demonstrates that net income growth significantly outpaced the growth of the equity base. The ratio remained robust through the end of the period, closing at 20.23% in March 2026, which represents a substantial increase in efficiency compared to the initial 2022 levels.
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Return on Assets (ROA)
Eaton Corp. plc, ROA calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Eaton ordinary shareholders | 866) | 1,131) | 1,010) | 982) | 964) | 971) | 1,009) | 993) | 821) | 945) | 891) | 744) | 638) | 722) | 607) | 601) | 532) | ||||||
| Total assets | 55,085) | 41,251) | 40,650) | 40,507) | 39,206) | 38,381) | 39,236) | 39,381) | 38,535) | 38,432) | 37,289) | 36,772) | 35,517) | 35,014) | 34,364) | 35,153) | 35,208) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 7.24% | 9.91% | 9.66% | 9.69% | 10.04% | 9.89% | 9.60% | 9.27% | 8.83% | 8.37% | 8.03% | 7.37% | 7.23% | 7.03% | 6.67% | 6.58% | 6.30% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 1.38% | 1.33% | -6.57% | -6.89% | -7.36% | -7.56% | -5.79% | -2.41% | -1.60% | -1.62% | -2.11% | -3.32% | -3.03% | -3.60% | -6.14% | -3.90% | -3.60% | ||||||
| Caterpillar Inc. | 9.87% | 9.01% | 9.89% | 10.45% | 11.70% | 12.30% | 12.38% | 13.21% | 13.43% | 11.81% | 10.50% | 9.79% | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | ||||||
| GE Aerospace | 6.72% | 6.69% | 6.29% | 6.19% | 5.64% | 5.32% | 4.93% | 3.85% | 2.14% | 5.81% | 6.45% | 5.89% | 5.33% | 0.12% | -3.23% | -2.38% | -2.48% | ||||||
| Honeywell International Inc. | 5.54% | 6.42% | 7.57% | 7.29% | 7.57% | 7.59% | 7.73% | 8.34% | 8.72% | 9.20% | 8.83% | 8.75% | 8.73% | 7.97% | 8.92% | 8.16% | 8.29% | ||||||
| Lockheed Martin Corp. | 8.09% | 8.38% | 6.97% | 7.14% | 9.71% | 9.59% | 12.02% | 12.23% | 12.33% | 13.19% | 12.29% | 12.39% | 10.41% | 10.84% | 11.28% | 9.09% | 12.06% | ||||||
| RTX Corp. | 4.26% | 3.94% | 3.91% | 3.68% | 2.79% | 2.93% | 2.86% | 1.40% | 2.17% | 1.97% | 1.96% | 3.43% | 3.43% | 3.27% | 2.82% | 2.81% | 2.63% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
ROA = 100
× (Net income attributable to Eaton ordinary shareholdersQ1 2026
+ Net income attributable to Eaton ordinary shareholdersQ4 2025
+ Net income attributable to Eaton ordinary shareholdersQ3 2025
+ Net income attributable to Eaton ordinary shareholdersQ2 2025)
÷ Total assets
= 100 × (866 + 1,131 + 1,010 + 982)
÷ 55,085 = 7.24%
2 Click competitor name to see calculations.
The analysis of the Return on Assets (ROA) indicates a sustained period of efficiency gains followed by a significant contraction in the final quarter of the observed period. From March 2022 through March 2025, there was a consistent upward trajectory in the ability to generate earnings from the asset base.
- Growth and Peak Performance
- Between March 2022 and March 2025, the ROA increased steadily from 6.30% to a peak of 10.04%. This improvement was driven by a strong increase in net income attributable to ordinary shareholders, which rose from $532 million to $964 million, while total assets grew at a more moderate pace from $35,208 million to $39,206 million.
- Phase of Stabilization
- From March 2025 to December 2025, the ROA remained relatively stable, fluctuating within a narrow range between 9.66% and 9.91%. During this interval, net income reached its highest recorded level of $1,131 million in December 2025, balancing against a gradual increase in total assets to $41,251 million.
- Significant Asset Expansion and Efficiency Decline
- A sharp decline in ROA to 7.24% occurred in March 2026. This contraction is primarily attributable to a substantial surge in total assets, which jumped to $55,085 million from $41,251 million in the preceding quarter. This rapid expansion of the asset base occurred while net income decreased to $866 million, resulting in a marked reduction in the return generated per dollar of assets.
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