v3.26.1
REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. Sales are measured at the amount of consideration the Company expects to be paid in exchange for these products or services.
The following table provides disaggregated sales by lines of businesses, geographic destination, market channel or end market, as applicable, for the Company's business segments:
Three months ended
June 30		Six months ended
June 30
(In millions)2026202520262025
Electrical Americas
Products$1,144 $817 $2,164 $1,560 
Systems2,806 2,533 5,387 4,800 
Total$3,951 $3,350 $7,551 $6,360 
Electrical Global
Products$1,627 $1,008 $2,776 $1,946 
Systems890 744 1,687 1,416 
Total$2,517 $1,753 $4,463 $3,362 
Aerospace
Original Equipment Manufacturers$456 $409 $864 $795 
Aftermarket474 396 920 746 
Industrial and Other292 275 578 518 
Total$1,222 $1,080 $2,362 $2,059 
Mobility
Vehicle$684 $663 $1,298 $1,280 
eMobility157 182 309 343 
Total$841 $845 $1,607 $1,623 
Total net sales$8,531 $7,028 $15,982 $13,404 
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (revenue recognized exceeds amount billed to the customer), and deferred revenue (advance payments and billings in excess of revenue recognized). Accounts receivable from customers were $6,040 million and $4,682 million at June 30, 2026 and December 31, 2025, respectively. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Unbilled receivables were $1,015 million and $759 million at June 30, 2026 and December 31, 2025, respectively, and are recorded in Prepaid expenses and other current assets. The increase in unbilled receivables reflects higher revenue recognized and not yet billed from increased business activity in 2026, higher revenue recognized over time in 2026, and unbilled receivables associated with the Ultra PCS acquisition.
Changes in the deferred revenue liabilities are as follows:
(In millions)Deferred Revenue
Balance at January 1, 2026
$923 
Customer deposits and billings2,365 
Revenue recognized in the period(2,173)
Deferred revenue from business acquisition51 
Translation(7)
Balance at June 30, 2026
$1,159 
(In millions)Deferred Revenue
Balance at January 1, 2025
$618 
Customer deposits and billings1,902 
Revenue recognized in the period(1,862)
Deferred revenue from business acquisitions73 
Translation15 
Balance at June 30, 2025
$746 
Deferred revenue liabilities of $1,133 million and $899 million as of June 30, 2026 and December 31, 2025, respectively, were included in Other current liabilities on the Consolidated Balance Sheets with the remaining balance presented in Other noncurrent liabilities.
A significant portion of open orders placed with Eaton are by customers of electrical products and electrical system and services, original equipment manufacturers or distributors. These open orders are not considered firm as they have been historically subject to releases by customers. In measuring backlog of unsatisfied or partially satisfied obligations, only the amount of orders to which customers are firmly committed are included. Using this criterion, total backlog at June 30, 2026 was approximately $24.1 billion. At June 30, 2026, approximately 71% of this backlog is targeted for delivery to customers in the next twelve months and the rest thereafter.