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Emerson Electric Co

Emerson Reports First Quarter 2026 Results; Updates 2026 Outlook

ST. LOUIS , Feb. 3, 2026 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results for its first quarter ended December 31, 2025 and updated its full year outlook for fiscal 2026. Emerson also declared a quarterly cash dividend of $0.555 per share of common stock payable March 10, 2026 to stockholders of record on February 13, 2026.

(dollars in millions, except per share)

2025 Q1

2026 Q1

Change

Underlying Orders1



9 %

Net Sales

$4,175

$4,346

4 %

Underlying Sales2



2 %

Pretax Earnings

$775

$775


Margin

18.6 %

17.8 %

(80) bps

Adjusted Segment EBITA3

$1,169

$1,203


Margin

28.0 %

27.7 %

(30) bps

GAAP Earnings Per Share

$1.02

$1.07

5 %

Adjusted Earnings Per Share4

$1.38

$1.46

6 %

Operating Cash Flow

$777

$699

(10) %

Free Cash Flow

$694

$602

(13) %

Management Commentary

"Emerson met sales commitments and exceeded expectations for profitability as our global teams continue to execute well," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We delivered a fourth consecutive quarter of strong underlying orders growth, and we are experiencing robust demand for our automation technology, led by Software & Systems, with strength in North America, India and the Middle East & Africa."

Karsanbhai continued, "Emerson is accelerating innovation, introducing new products and delivering on the critical programs we highlighted at our 2025 investor conference. These releases advance our capabilities in software-defined automation and further enhance our leadership position in high-growth verticals."

2026 Outlook

The following tables summarize the fiscal year 2026 guidance framework. As we pivot capital allocation to returning cash to shareholders, the 2026 outlook assumes returning ~$2.2B through ~$1B share repurchases and ~$1.2B of dividends.

2026 Q2

2026

Net Sales Growth

3% - 4%

~5.5%

Underlying Sales Growth

1% - 2%

~4%

Earnings Per Share

$1.06 - $1.11

$4.78 - $4.93

Amortization of intangibles

~$0.35

~$1.38

Restructuring and related costs

~$0.06

~$0.14

Acquisition/divestiture fees and related costs

~$0.02

~$0.06

Discrete taxes

~$0.01

~$0.04

Adjusted Earnings Per Share

$1.50 - $1.55

$6.40 - $6.55

Operating Cash Flow


$4.0B - $4.1B

Free Cash Flow


$3.5B - $3.6B

Share Repurchase


~$1.0B

1 Underlying orders do not include AspenTech.

2 Underlying sales exclude the impact of currency translation, and significant acquisitions and divestitures.

3 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.

4 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes.

Conference Call

Today, beginning at 3:30 p.m. Central Time / 4:30 p.m. Eastern Time, Emerson management will discuss the first quarter results during an investor conference call. Participants can access a live webcast available at https://ir.emerson.com at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

About Emerson

Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be "forward-looking" statements, which represent management's expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Investors:

Media:

Doug Ashby

Joseph Sala / Greg Klassen

(314) 553-2197

Joele Frank, Wilkinson Brimmer Katcher


(212) 355-4449

(tables attached)

Table 1

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)






Quarter Ended Dec 31,


2024


2025





Net sales

$           4,175


$           4,346

Cost and expenses




     Cost of sales

1,940


2,035

     SG&A expenses

1,224


1,242

     Other deductions, net

228


204

     Interest expense, net

8


90

Earnings before income taxes

775


775

Income taxes

182


169

Net earnings

593


606

Less: Noncontrolling interests in subsidiaries

8


1

Net earnings common stockholders

$              585


$              605





Diluted avg. shares outstanding

571.1


564.1





Diluted earnings per share common stockholders




Diluted earnings per common share

$             1.02


$             1.07










Quarter Ended Dec 31,


2024


2025

Other deductions, net




Amortization of intangibles

$              229


$              205

Restructuring costs

11


9

Other

(12)


(10)

Total

$              228


$              204






 

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)










Sept 30, 2025


Dec 31, 2025

Assets




     Cash and equivalents

$           1,544


$           1,748

     Receivables, net

3,101


2,972

     Inventories

2,213


2,353

     Other current assets

1,725


1,770

Total current assets

8,583


8,843

     Property, plant & equipment, net

2,871


2,867

     Goodwill

18,193


18,182

     Other intangibles

9,458


9,205

     Other

2,859


2,842

Total assets

$         41,964


$         41,939





Liabilities and equity




     Short-term borrowings and current maturities of long-term debt

$           4,797


$           5,832

     Accounts payable

1,384


1,339

     Accrued expenses

3,616


3,349

Total current liabilities

9,797


10,520

     Long-term debt

8,319


7,575

     Other liabilities

3,550


3,552

Equity




     Common stockholders' equity

20,282


20,277

     Noncontrolling interests in subsidiaries

16


15

Total equity

20,298


20,292

Total liabilities and equity

$         41,964


$         41,939

 


Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)







Three Months Ended Dec 31,



2024


2025

Operating activities





Net earnings


$              593


$              606

Adjustments to reconcile net earnings to net cash provided by operating activities:





        Depreciation and amortization


383


359

        Stock compensation


68


55

        Changes in operating working capital


(154)


(357)

        Other, net


(113)


36

            Cash provided by operating activities


777


699






Investing activities





Capital expenditures


(83)


(97)

Purchases of businesses, net of cash and equivalents acquired


(37)


—

Other, net


(22)


(28)

    Cash used in investing activities


(142)


(125)






Financing activities





Net increase (decrease) in short-term borrowings


2


(485)

Proceeds from short-term borrowings greater than three months


—


3,473

Payments of short-term borrowings greater than three months


—


(2,099)

Payments of long-term debt


(2)


(587)

Dividends paid


(301)


(312)

Purchases of common stock


(899)


(250)

Other, net


(91)


(104)

    Cash used in financing activities


(1,291)


(364)






Effect of exchange rate changes on cash and equivalents


(98)


(6)

Increase (decrease) in cash and equivalents


(754)


204

Beginning cash and equivalents


3,588


1,544

Ending cash and equivalents


$            2,834


$           1,748






 

Table 4

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(DOLLARS IN MILLIONS, UNAUDITED)


The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to
supplement the Company's results of operations, including its segment earnings which are defined as earnings before
interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding
intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA,
and adjusted segment and total segment EBITA margin are measures used by management and may be useful for
investors to evaluate the Company's segments' operational performance.





Quarter Ended Dec 31,



2024


2025


Reported


Underlying


Sales









Control Systems & Software

$           1,023


$           1,044


2 %


— %


Test & Measurement

359


409


14 %


11 %


Software & Systems

$           1,382


$           1,453


5 %


3 %











Sensors

972


996


2 %


1 %


Final Control

1,334


1,394


4 %


2 %


Intelligent Devices

$           2,306


$           2,390


4 %


2 %











Safety & Productivity

$              487


$              503


3 %


1 %











Total

$           4,175


$           4,346


4 %


2 %


Sales Growth by Geography







Quarter Ended
Dec 31,





Americas

3 %






Europe

3 %






Asia, Middle East & Africa

— %






 

Table 4 cont.






Quarter Ended Dec 31,


Quarter Ended Dec 31,


2024


2025


As Reported
(GAAP)


Adjusted
EBITA
(Non-GAAP)


As
Reported
(GAAP)


Adjusted
EBITA
(Non-GAAP)

Earnings








Control Systems & Software

$          208


$          337


$          232


$          334

 Margins

20.3 %


33.0 %


22.2 %


31.9 %

Test & Measurement

(13)


91


14


121

 Margins

(3.6) %


25.5 %


3.6 %


29.7 %

Software & Systems

$          195


$          428


$          246


$          455

 Margins

14.1 %


31.1 %


17.0 %


31.3 %









Sensors

285


296


266


282

 Margins

29.3 %


30.5 %


26.7 %


28.3 %

Final Control

305


341


331


361

 Margins

22.9 %


25.5 %


23.8 %


25.9 %

Intelligent Devices

$          590


$          637


$          597


$          643

 Margins

25.6 %


27.6 %


25.0 %


26.9 %









Safety & Productivity

$            96


$          104


$            97


$          105

 Margins

19.7 %


21.3 %


19.2 %


20.9 %









Corporate items and interest expense, net:








Stock compensation

(68)


(66)


(55)


(51)

Unallocated pension and postretirement costs

27


27


29


29

Corporate and other

(57)


(34)


(49)


(40)

Interest expense, net

(8)


—


(90)


—









Pretax Earnings / Adjusted EBITA

$          775


$        1,096


$          775


$        1,141

 Margins

18.6 %


26.3 %


17.8 %


26.3 %









Supplemental Total Segment Earnings:








Adjusted Total Segment EBITA



$        1,169




$        1,203

 Margins



28.0 %




27.7 %









 

Table 4 cont.






Quarter Ended Dec 31,


Quarter Ended Dec 31,



2024


2025



Amortization of

Intangibles1


Restructuring

and

Related Costs2


Amortization of

Intangibles1


Restructuring

and

Related Costs2


Control Systems & Software

$                 127


$                     2


$                 101


$                     1


Test & Measurement

105


(1)


107


—


Software & Systems

$                 232


$                     1


$                 208


$                     1











Sensors

10


1


11


5


Final Control

29


7


28


2


Intelligent Devices

$                   39


$                     8


$                   39


$                     7











Safety & Productivity

$                     7


$                     1


$                     7


$                     1











Corporate

—


3


—


2


Total

$                 278


$                   13


$                 254


$                   11











1 Amortization of intangibles includes $49 reported in cost of sales for the three months ended December 31, 2024 and 2025.

2 Restructuring and related costs includes $2 reported in selling, general and administrative expenses for the three months ended December 31, 2024 and 2025.

 



Quarter Ended Dec 31,

Depreciation and Amortization

2024


2025

Control Systems & Software

$              149


$              122

Test & Measurement

118


119

Software & Systems

267


241





Sensors

31


33

Final Control

55


56

Intelligent Devices

86


89





Safety & Productivity

19


19





Corporate

11


10

Total

$              383


$              359

 

Table 5

EMERSON AND SUBSIDIARIES

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(DOLLARS IN MILLIONS, UNAUDITED)

The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis.
The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. The
Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year
purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for
reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.









Quarter Ended Dec 31,







2024


2025


 Stock compensation (GAAP)





$                  (68)


$                  (55)


    Integration-related stock compensation expense





2


4


 Adjusted stock compensation (non-GAAP)





$                  (66)


$                  (51)










Quarter Ended Dec 31,







2024


2025


 Corporate and other (GAAP)





$                  (57)


$                  (49)


 Corporate restructuring and related costs





3


2


 Acquisition / divestiture costs





20


7


 Adjusted corporate and other (non-GAAP)





$                  (34)


$                  (40)










 

Table 6

EMERSON AND SUBSIDIARIES

ADJUSTED EBITA & EPS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)


The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis,
are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted
EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring
expense, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments.
Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase
accounting related items and transaction-related costs, discrete taxes, and certain gains, losses or impairments. Adjusted
EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful
for investors to evaluate the Company's operational performance.



Quarter Ended Dec 31,


2024


2025

Pretax earnings

$             775


$             775

Percent of sales

18.6 %


17.8 %

Interest expense, net

8


90

Amortization of intangibles

278


254

Restructuring and related costs

13


11

Acquisition/divestiture fees and related costs

22


11

Adjusted EBITA

$          1,096


$          1,141

Percent of sales

26.3 %


26.3 %






Quarter Ended Dec 31,


2024


2025

GAAP earnings per share

$            1.02


$            1.07

Amortization of intangibles

0.31


0.35

Restructuring and related costs

0.02


0.02

Acquisition/divestiture fees and related costs

0.03


0.01

Discrete taxes

—


0.01

Adjusted earnings per share

$            1.38


$            1.46





 

Table 6 cont.


Quarter Ended December 31, 2025


Pretax
Earnings


Income
Taxes


Net
Earnings


Non-
Controlling

Interests


Net
Earnings
Common
Stockholders


Diluted
Earnings
Per
Share

As reported (GAAP)

$         775


$         169


$         606


$             1


$            605


$        1.07

Amortization of intangibles

254

1

59


195


—


195


0.35

Restructuring and related costs

11

2

3


8


—


8


0.02

Acquisition/divestiture fees and related costs

11


2


9


—


9


0.01

Discrete Taxes

—


(5)


5


—


5


0.01

Adjusted (non-GAAP)

$      1,051


$         228


$         823


$             1


$            822


$        1.46

Interest expense, net

90











Adjusted EBITA (non-GAAP)

$      1,141























1 Amortization of intangibles includes $49 reported in cost of sales.

2 Restructuring and related costs includes $2 reported in selling, general and administrative expenses.


 

Reconciliations of Non-GAAP Financial Measures & Other


Table 8









Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions,
except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.










2026 Q1 Underlying Sales Change

Reported

(Favorable) /
Unfavorable FX

(Acquisitions) /
Divestitures

Underlying

Control Systems & Software

2 %

(2) %

— %

— %

Test & Measurement

14 %

(3) %

— %

11 %

Software & Systems

5 %

(2) %

— %

3 %

Sensors

2 %

(1) %

— %

1 %

Final Control

4 %

(2) %

— %

2 %

Intelligent Devices

4 %

(2) %

— %

2 %

Safety and Productivity

3 %

(2) %

— %

1 %

Emerson

4 %

(2) %

— %

2 %

 

Underlying Growth Guidance

2026 Q2
Guidance

2026

Guidance

Reported (GAAP)

3% - 4%

~5.5%

(Favorable) / Unfavorable FX

~(2 pts)

~(1.5 pts)

(Acquisitions) / Divestitures

-

-

Underlying (non-GAAP)

1% - 2%

~4%

 

2025 Q1 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization

of

Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$               208

20.3 %

$               127

$                     2

$               337

33.0 %

Test & Measurement

(13)

(3.6) %

105

(1)

91

25.5 %

Software & Systems

$               195

14.1 %

$               232

$                     1

$               428

31.1 %

Sensors

285

29.3 %

10

1

296

30.5 %

Final Control

305

22.9 %

29

7

341

25.5 %

Intelligent Devices

$               590

25.6 %

$                 39

$                     8

$               637

27.6 %

Safety & Productivity

$                 96

19.7 %

$                    7

$                     1

$               104

21.3 %


2026 Q1 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization
of
 Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$               232

22.2 %

$               101

$                     1

$               334

31.9 %

Test & Measurement

14

3.6 %

107

—

121

29.7 %

Software & Systems

$               246

17.0 %

$               208

$                     1

$               455

31.3 %

Sensors

266

26.7 %

11

5

282

28.3 %

Final Control

331

23.8 %

28

2

361

25.9 %

Intelligent Devices

$               597

25.0 %

$                 39

$                     7

$               643

26.9 %

Safety & Productivity

$                 97

19.2 %

$                    7

$                     1

$               105

20.9 %








 

Total Adjusted Segment EBITA


2025 Q1

2026 Q1

Pretax earnings (GAAP)


$                 775

$                 775

Margin


18.6 %

17.8 %

Corporate items and interest expense, net


106

165

Amortization of intangibles


278

254

Restructuring and related costs


10

9

Adjusted segment EBITA (non-GAAP)


$              1,169

$              1,203

Margin


28.0 %

27.7 %

 

Free Cash Flow


2025 Q1

2026 Q1


2026E

($ in billions)


Operating cash flow (GAAP)


$                 777

$                 699


$4.0 - $4.1


Capital expenditures


(83)

(97)


~(0.45)


Free cash flow (non-GAAP)


$                 694

$                 602


$3.5 - $3.6









Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2026E figures are approximate, except where range is given.

 

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SOURCE Emerson