Investing.com -- Shares in power management company Eaton fell on Tuesday after the company reported in-line fourth-quarter results and issued a softer outlook for early 2026.

The company posted adjusted earnings per share of $3.33 for the fourth quarter, edging past the $3.32 analyst estimate. Revenue reached a quarterly record of $7.1 billion, matching consensus expectations.

Sales rose 13% from the same period in 2024, driven by 9% organic growth, 2% from acquisitions and a 2% boost from foreign exchange, the company said.

Segment margins came in at 24.9%, also a fourth-quarter record, marking a 20-basis-point improvement year over year.

Operating cash flow totaled $2 billion for the quarter, while free cash flow reached $1.6 billion, both quarterly highs and up 23% and 17%, respectively, from a year earlier.

“In the fourth quarter, we continued to convert strong demand into accelerated orders and organic growth. Electrical and Aerospace were standout drivers, contributing to sustained backlog growth and a book-to-bill ratio of 1.1," said Paulo Ruiz, CEO of Eaton.

For the full year 2025, Eaton reported record sales of $27.4 billion, up 10% from 2024. The increase reflected 8% organic growth and 2% from acquisitions. Adjusted earnings per share climbed to a record $12.07.

Looking ahead, Eaton guided to first-quarter 2026 adjusted EPS of $2.65 to $2.85, below the $3.01 consensus estimate. The company expects organic growth of 5% to 7% and segment margins of 22.2% to 22.6% for the quarter.

For the full year 2026, Eaton forecast adjusted EPS of $13.00 to $13.50, also below the consensus projection of $13.52. The company sees organic growth of 7% to 9% and segment margins in the range of 24.6% to 25%.