Eaton Corporation plc stock research
FY2026 Q1
Eaton (ETN) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose, but cost of revenue grew at a faster pace, causing gross margin to weaken sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose, but cost of revenue grew at a faster pace, causing gross margin to weaken sequentially and year-over-year.
- The gross margin declined as cost of revenue expanded more rapidly than revenue. Revenue growth was positive, but the margin compression indicates cost efficiency weakened.
- Gross margin was lower than the previous quarter and lower than the same quarter last year. Revenue was higher than both periods, but the margin weakened, reflecting a less favorable cost-to-revenue relationship.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.6%
Gross profit
$2.7B
Revenue
$7.5B
Cost of revenue
$4.8B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-2.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $7.0B | $2.6B | $4.4B | 37.0% |
| Sep 30, 2025 | $7.0B | $2.7B | $4.3B | 38.3% |
| Dec 31, 2025 | $7.1B | $2.6B | $4.5B | 36.8% |
| Mar 31, 2026 | $7.5B | $2.7B | $4.8B | 35.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-1.2 pts
Year-over-year change
Mar 31, 2025
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined as cost of revenue expanded more rapidly than revenue. Revenue growth was positive, but the margin compression indicates cost efficiency weakened.
Gross margin was lower than the previous quarter and lower than the same quarter last year. Revenue was higher than both periods, but the margin weakened, reflecting a less favorable cost-to-revenue relationship.
Monitor whether cost of revenue continues to outpace revenue growth in subsequent quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Eaton Corporation plc (ETN) | 35.6% |