ETN · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Eaton Corp plc · 2026-11-03 · Importance 35 · Surprise 48

Eaton’s effective tax rate was 21.3% for third-quarter 2026, versus 20.7% in third-quarter 2025, and 23.5% for the first nine months of 2026, versus 18.7% in the comparable 2025 period. The increase primarily reflected a greater share of income in higher-tax jurisdictions and withholding tax expense related to funding the Boyd Thermal acquisition. Eaton incurred $52 million of withholding taxes in the second quarter of 2026, included in income tax expense for the first nine months. The nine-month net-income reconciliation also attributed $108 million, or $0.28 per diluted share, to tax-rate impact.

Key facts

• Eaton's effective income tax rate was 21.3% in the third quarter and 23.5% in the first nine months of 2026, compared with 20.7% and 18.7% in the corresponding 2025 periods; the increases primarily reflected more income in higher-tax jurisdictions and withholding tax related to Boyd Thermal's acquisition funding. source