NYSE:EMR

Emerson Rises 1.1% as Q4 Profitability Beats Expectations and 2027 Outlook Signals Continued Growth

Emerson Electric (NYSE: EMR) shares rose about 1.1% after the company reported stronger fourth-quarter earnings and margins, raised its dividend and issued an initial fiscal 2027 outlook pointing to continued sales and earnings growth.

Fourth-quarter net sales increased 7% year over year to $5.20 billion, while underlying sales rose 4%. Underlying orders increased 14%, reflecting strong long-cycle project activity across Emerson’s growth markets.

Profitability improved substantially. Pretax earnings rose to $997 million from $760 million, with pretax margin expanding 360 basis points to 19.2%. Adjusted segment EBITA increased to $1.51 billion, while margin improved 160 basis points to 29.1%.

GAAP EPS increased 24% to $1.33, while adjusted EPS rose 15% to $1.86. Free cash flow increased 9% to $916 million.

For the full fiscal year, revenue increased 5% to $18.98 billion and adjusted EPS rose 10% to $6.59. Free cash flow reached $3.54 billion, also up 9%.

Management said demand remains broad-based across its businesses and regions, supported by a robust backlog and long-cycle investment activity. Emerson expects fiscal 2027 net sales and underlying sales to grow about 5%, with adjusted EPS of approximately $7.25.

The company also expects operating cash flow of $4.3 billion-$4.4 billion and free cash flow of $3.8 billion-$3.9 billion in fiscal 2027. Emerson plans to return roughly $3.8 billion to shareholders through about $2.5 billion in share repurchases and $1.3 billion in dividends.

Emerson increased its quarterly dividend by 7% to $0.595 per share.

The 1.1% share gain appears to reflect solid margin expansion, strong order trends and a constructive 2027 outlook. While expected sales growth remains moderate at around 5%, continued earnings growth, strong cash generation and substantial shareholder returns provide support for the stock.
Emerson Stock Edges Lower Despite Strong Quarter and Raised Full-Year Outlook

Emerson Electric (NYSE: EMR) shares slipped 0.3% in after-hours trading despite reporting better-than-expected third-quarter results, driven by strong order growth, expanding margins, and robust cash generation.

Third-quarter net sales increased 7% year over year to $4.87 billion, while underlying sales rose 6%. Demand remained healthy across key markets, with underlying orders increasing 7%, led by the Software & Systems business and broad-based strength in North America and Asia.

Profitability improved across the board. GAAP earnings per share increased 24% to $1.28, while adjusted EPS rose 13% to $1.71. Adjusted segment EBITA margin expanded 140 basis points to 28.5%, reflecting strong operating execution and favorable business mix. Operating cash flow climbed 34% to $1.43 billion, with free cash flow increasing 36% to $1.32 billion.

Management highlighted continued investment across long-term growth markets despite ongoing geopolitical uncertainty. CEO Lal Karsanbhai said demand remained robust during the quarter, supported by secular trends across automation, software, and industrial technology, while noting the company continued serving customers effectively despite the evolving Middle East situation.

Reflecting the strong quarterly performance, Emerson raised its full-year fiscal 2026 outlook. The company now expects adjusted EPS of approximately $6.55, operating cash flow of roughly $4.1 billion, and free cash flow of about $3.6 billion. Emerson also plans to return approximately $2.2 billion to shareholders during 2026 through dividends and share repurchases.

Although the shares traded modestly lower after hours, the results reinforced Emerson's solid execution, healthy order momentum, expanding margins, and confidence in continued growth supported by long-term industrial automation and software demand.
Emerson Stock Slips 0.38% in Premarket as Middle East Conflict Weighs on Sales

May 6, 2026 · Earnings Report

Emerson reported second quarter fiscal 2026 results, posting modest top-line growth and stronger-than-expected margins, though the industrial automation giant flagged ongoing headwinds from the conflict in the Middle East. Shares dipped 0.38% in premarket trading, a muted reaction reflecting a mixed but broadly steady quarter.

Net sales came in at $4.56 billion for the quarter ended March 31, 2026, up 3% from $4.43 billion in the same period a year ago. Underlying sales growth, which strips out currency and portfolio effects, was just 0.5%, reflecting the drag from Middle East operations. Despite the softer top line, pretax earnings climbed to $793 million from $629 million a year ago, pushing pretax margin up 320 basis points to 17.4%.

GAAP earnings per share rose 28% to $1.10, compared to $0.86 in Q2 2025. On an adjusted basis, EPS came in at $1.54, up 4% year-over-year. Adjusted segment EBITA was $1.26 billion, with margin of 27.6%, down slightly by 40 basis points from the prior year period.
"Emerson's second quarter results reflect our ability to deliver in a dynamic environment," said President and CEO Lal Karsanbhai. "While sales were impacted by the conflict in the Middle East, margins exceeded expectations, and we achieved strong adjusted earnings per share. Underlying orders were up 5% as we continue to see resilient demand, led by Software and Systems, with sustained momentum in our growth verticals."

Operating cash flow came in at $779 million, down 6% from $825 million a year ago, with free cash flow of $694 million, also down 6%. Emerson also declared a quarterly cash dividend of $0.555 per share, payable June 10, 2026 to stockholders of record as of May 15, 2026. As part of a broader shift toward returning capital to shareholders, the company plans to return approximately $2.2 billion in 2026 through roughly $1 billion in share repurchases and approximately $1.2 billion in dividends.

Karsanbhai expressed confidence in the remainder of the fiscal year. "As we look ahead, 2026 continues to develop largely as expected with a strong second half, supported by orders momentum and a robust backlog," he said.

For the third quarter of fiscal 2026, Emerson expects net sales growth of approximately 5.5% and underlying sales growth of around 5%, with adjusted EPS in the range of $1.65 to $1.70. For the full fiscal year, the company guided to net sales growth of approximately 4.5% and underlying sales growth of around 3%, with adjusted EPS expected between $6.45 and $6.55. Full year operating cash flow is projected at $4.0 billion to $4.1 billion, with free cash flow of $3.5 billion to $3.6 billion.

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Emerson Reports Strong Fiscal 2025 Results and Increases Dividend

Emerson reported solid financial results for the fourth quarter and full fiscal year ended September 30, 2025, highlighted by margin expansion and steady sales growth. Fourth-quarter net sales rose 5% year over year to 4.86 billion dollars, while full-year sales increased 3% to 18.02 billion dollars. Adjusted earnings per share climbed 9% to 1.62 dollars in the quarter and 6.00 dollars for the year.

Pretax earnings rose to 796 million dollars in the quarter, up from 679 million dollars a year earlier, and full-year pretax earnings surged to 2.93 billion dollars from 2.02 billion dollars, reflecting a margin expansion of 480 basis points to 16.3%. Adjusted segment EBITA margins also strengthened to 27.6% for the year.

The Board of Directors declared a 5% increase in the quarterly cash dividend to 0.555 dollars per share, payable on December 10, 2025, to shareholders of record as of November 14. The company also authorized the repurchase of up to 50 million shares of common stock, in addition to approximately 20 million shares remaining from a prior authorization.

CEO Lal Karsanbhai said Emerson achieved strong execution and integration progress across its portfolio. “Fiscal 2025 was marked by continued margin expansion, robust cash generation, and strong operational performance,” he said. “We’ve advanced our position as the leading automation company, successfully integrated AspenTech, and completed the Test & Measurement integration, achieving our 200 million dollar synergy target.”

Karsanbhai added that Emerson’s portfolio is aligned with long-term growth drivers such as industrial automation and energy transition, which support mid-single-digit order growth and sustainable performance heading into fiscal 2026.
Emerson (NYSE: EMR) will report its fourth quarter and full year results prior to market open on Wednesday, November 5, 2025. Investor conference call will be that same day, beginning at 8:30 a.m. Eastern Time, 7:30 a.m. Central Time.

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Emerson (NYSE: EMR) will report its second quarter results prior to market open on Wednesday, May 7, 2025. Emerson senior management will discuss the results during an investor conference call that same day, beginning at 8:00 a.m. Eastern Time, 7:00 a.m. Central Time.
Emerson Electric Co. Announces Resignation of Board Member Leticia Gonçalves Lourenco
March 12, 2025 – Emerson Electric Co. (NYSE: EMR) announced that Leticia Gonçalves Lourenco has resigned from its Board of Directors, following a change in company and position related to her principal occupation.

The Board of Directors accepted her resignation on March 10, 2025, and the decision took effect immediately.

Emerson Electric Co. expressed appreciation for Lourenco’s contributions during her tenure and wished her success in her future endeavors.
Emerson has completed its acquisition of all outstanding shares of Aspen Technology, Inc. (AspenTech) that it did not already own. This marks a key milestone in Emerson’s portfolio transformation, further strengthening its position in industrial automation and software solutions. AspenTech is now a wholly owned subsidiary of Emerson and will operate within the Control Systems & Software segment.

As part of the transition, Antonio Pietri will retire as CEO of AspenTech, and Vincent M. Servello has been appointed as the new President. David Baker will continue as the business unit's Chief Financial Officer. The acquisition was finalized following the successful completion of Emerson’s tender offer, which expired on March 11, 2025. Shareholders who did not tender their shares will receive $265 per share in cash.

AspenTech’s shares have ceased trading on NASDAQ, and the integration is expected to enhance Emerson’s software offerings, helping customers optimize their industrial operations. Emerson's financial advisors for the acquisition were Goldman Sachs & Co. LLC and Centerview Partners LLC, with legal support from Davis Polk & Wardwell LLP.