v3.26.1
EATON SHAREHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2026
Stockholders' Equity Note [Abstract]  
EATON SHAREHOLDERS' EQUITY EATON SHAREHOLDERS' EQUITY
The changes in Shareholders’ equity are as follows:
Ordinary sharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossShares held in trustTotal Eaton shareholders' equityNoncontrolling interestsTotal equity
(In millions)SharesDollars
Balance at January 1, 2026
387.9 $4 $12,837 $10,702 $(4,118)$— $19,425 $44 $19,469 
Net income— — — 866 — — 866 2 868 
Other comprehensive loss, net of tax(118)(118)(118)
Cash dividends paid and accrued— — — (431)— — (431)(1)(432)
Issuance of shares under equity-based
   compensation plans		0.4 — (21)— — (1)(21)— (21)
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Balance at March 31, 2026
388.3 4 12,817 11,137 (4,235)(1)19,721 44 19,765 
Net income— — — 821 — — 821 1 823 
Other comprehensive income, net of tax90 90 90 
Cash dividends paid— — — (427)— — (427)(1)(428)
Issuance of shares under equity-based
   compensation plans		0.2 — 50 (1)— 1 50 — 50 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — 1 1 
Balance at June 30, 2026
388.4 $4 $12,867 $11,530 $(4,146)$— $20,254 $45 $20,299 
Ordinary sharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossShares held in trustTotal Eaton shareholders' equityNoncontrolling interestsTotal equity
(In millions)SharesDollars
Balance at January 1, 2025
392.9 $4 $12,731 $10,096 $(4,342)$(1)$18,488 $43 $18,531 
Net income— — — 964 — — 964 1 965 
Other comprehensive income, net of tax92 92 92 
Cash dividends paid and accrued— — — (411)— — (411)(2)(413)
Issuance of shares under equity-based
   compensation plans		0.4 — (19)— — — (19)— (19)
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Repurchase of shares(1.9)— — (608)— — (608)— (608)
Balance at March 31, 2025
391.3 4 12,711 10,041 (4,250)(1)18,506 41 18,547 
Net income— — — 982 — — 982 1 982 
Other comprehensive income, net of tax155 155 155 
Cash dividends paid— — — (407)— — (407)— (407)
Issuance of shares under equity-based
   compensation plans		0.2 — 69 (1)— — 68 — 68 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Repurchase of shares(2.3)— — (698)— — (698)— (698)
Balance at June 30, 2025
389.3 $4 $12,780 $9,917 $(4,095)$— $18,606 $41 $18,647 
On February 23, 2022, the Eaton Board of Directors adopted a share repurchase program for repurchases of ordinary shares up to $5.0 billion to be made during the three-year period commencing on that date (2022 Program). On February 27, 2025, the Eaton Board of Directors renewed the 2022 Program by providing authority for up to $9.0 billion in repurchases to be made during the three-year period commencing on that date (2025 Program). Under the 2025 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the three and six months ended June 30, 2026, no ordinary shares were repurchased. During the three and six months ended June 30, 2025, 2.3 million and 4.2 million ordinary shares, respectively, were repurchased under the 2025 or 2022 Programs in the open market at a total cost of $698 million and $1,306 million, respectively.
The changes in Accumulated other comprehensive loss are as follows:
(In millions)Currency translation and related hedging instrumentsPensions and other postretirement benefitsCash flow
hedges		Total
Balance at January 1, 2026
$(3,159)$(1,062)$102 $(4,118)
Other comprehensive income (loss) before
    reclassifications		(73)57 (37)(53)
Amounts reclassified from Accumulated other
   comprehensive loss (income)		(6)41 (10)25 
Net current-period Other comprehensive
   income (loss)		(79)98 (47)(28)
Balance at June 30, 2026
$(3,237)$(964)$55 $(4,146)
The reclassifications out of Accumulated other comprehensive loss are as follows:
(In millions)Six months ended
June 30		Consolidated Statements
of Income classification
Gains and (losses) on net investment hedges (amount excluded
  from effectiveness testing)
Currency exchange contracts$6 Interest expense - net
Tax expense— 
Total, net of tax6 
Amortization of defined benefits pensions and other
   postretirement benefits items
Actuarial loss and prior service cost(48)1
Tax benefit7 
Total, net of tax(41)
Gains and (losses) on cash flow hedges
Floating-to-fixed interest rate swaps5 Interest expense - net
Currency exchange contracts8 Net sales and Cost of products sold
Tax expense(3)
Total, net of tax10 
Total reclassifications for the period$(25)
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 9 for additional information about pension and other postretirement benefits items.
Net Income Per Share Attributable to Eaton Ordinary Shareholders
A summary of the calculation of net income per share attributable to Eaton ordinary shareholders is as follows:
Three months ended
June 30		Six months ended
June 30
(In millions except for per share data)2026202520262025
Net income attributable to Eaton ordinary shareholders$821 $982 $1,687 $1,945 
Weighted-average number of ordinary shares outstanding - diluted389.5 391.4 389.4 392.5 
Less dilutive effect of equity-based compensation1.0 1.1 1.0 1.3 
Weighted-average number of ordinary shares outstanding - basic388.5 390.3 388.4 391.2 
Net income per share attributable to Eaton ordinary shareholders
Diluted$2.11 $2.51 $4.33 $4.96 
Basic2.11 2.52 4.34 4.97 
For the second quarter and first six months of 2026, all stock options were included in the calculation of diluted net income per share attributable to Eaton ordinary shareholders because they were all dilutive. For the second quarter and first six months of 2025, 0.1 million stock options were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.