Emerson Reports Third Quarter 2026 Results; Raises 2026 Outlook

Emerson Reports Third Quarter 2026 Results; Raises 2026 Outlook ST. LOUIS, Aug. 4, 2026 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results 1 for its third quarter ended June 30, 2026 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 September 10, 2026 to stockholders of record on August 14, 2026.

(dollars in millions, except per share)

2025 Q3

2026 Q3

Change

Underlying Orders 2

7 %

Net Sales

$4,553

$4,873

7 %

Underlying Sales 3

6 %

Pretax Earnings

$734

$916

Margin

16.1 %

18.8 %

270 bps

Adjusted Segment EBITA 4

$1,232

$1,387

Margin

27.1 %

28.5 %

140 bps

GAAP Earnings Per Share

$1.03

$1.28

24 %

Adjusted Earnings Per Share 5

$1.52

$1.71

13 %

Operating Cash Flow

$1,062

$1,425

34 %

Free Cash Flow

$970

$1,323

36 %

Management Commentary

"Emerson had an outstanding third quarter with sales, margin expansion, earnings and cash flow all exceeding expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Demand was robust, with underlying orders up 7%, led by Software & Systems and broad-based growth in North America and Asia. The conflict in the Middle East remains fluid, and I am proud of our team's ability to deliver results and support our customers around the world."

Karsanbhai continued, "We are raising our full year guidance, reflecting our strong third quarter performance and healthy demand. Secular tailwinds continue to support sustained investment in our growth verticals and provide a solid foundation as we finish 2026 and look ahead to 2027."

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.

Guidance figures are approximate.

2026 Q4

2026‌

Net Sales Growth

~5%

Underlying Sales Growth

~5%

~3.5%

Earnings Per Share

~$1.45

~$4.89

Amortization of intangibles

~$0.34

~$1.39

Restructuring and related costs

~$0.03

~$0.24

Acquisition/divestiture fees and related costs

~$0.01

~$0.09

Discrete taxes

~$0.02

~$0.05

IEEPA tariff refunds

~($0.11)

Adjusted Earnings Per Share

~$1.85

~$6.55

Operating Cash Flow

~$4.1B

Free Cash Flow

~$3.6B

Results are presented on a continuing operations basis.

Underlying orders do not include AspenTech.

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

Adjusted segment EBITA represents segment earnings excluding restructuring and intangibles amortization expense.

Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, first year purchase accounting related items and transaction-related costs, discrete taxes and certain gains, losses or impairments.

Conference Call

Today, beginning at 3:30 p.m. Central Time / 4:30 p.m. Eastern Time, Emerson management will discuss the third 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, Middle East 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 June

30,

Nine Months Ended

June 30,

2025

2026

2025

2026

Net sales

$ 4,553

$ 4,873

$ 13,161

$ 13,781

Cost of sales

2,160

2,218

6,161

6,393

SG&A expenses

1,266

1,343

3,773

3,902

Other deductions, net

298

311

944

744

Interest expense, net

145

258

Earnings from continuing operations before income taxes

734

916

2,138

2,484

Income taxes

154

198

536

542

Earnings from continuing operations

580

718

1,602

1,942

Discontinued operations, net of tax

—

Net earnings

586

718

1,609

1,942

Less: Noncontrolling interests in subsidiaries

—

(48)

Net earnings common stockholders

$ 586

$ 718

$ 1,657

$ 1,941

Earnings common stockholders

Earnings from continuing operations

580

718

1,650

1,941

Discontinued operations

—

Net earnings common stockholders

$ 586

$ 718

$ 1,657

$ 1,941

Diluted avg. shares outstanding

564.7

561.1

567.1

562.7

Diluted earnings per share common stockholders

Earnings from continuing operations

$ 1.03

$ 1.28

$ 2.91

$ 3.45

Discontinued operations

0.01

—

0.01

—

Diluted earnings per common share

$ 1.04

$ 1.28

$ 2.92

$ 3.45

Quarter Ended June

30,

Nine Months Ended

June 30,

2025

2026

2025

2026

Other deductions, net

Amortization of intangibles

$ 219

$ 204

$ 677

$ 613

Restructuring costs

141

Other

197

(10)

Total

$ 298

$ 311

$ 944

$ 744

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

Sept 30, 2025

June 30, 2026

Assets

Cash and equivalents

$ 1,544

$ 2,180

Receivables, net

3,101

3,057

Inventories

2,213

2,513

Other current assets

1,725

1,905

Total current assets

8,583

9,655

Property, plant & equipment, net

2,871

2,861

Goodwill

18,193

18,122

Other intangible assets

9,458

8,686

Other

2,859

2,884

Total assets

$ 41,964

$ 42,208

Liabilities and equity

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

$ 4,797

$ 5,587

Accounts payable

1,384

1,613

Accrued expenses

3,616

3,572

Total current liabilities

9,797

10,772

Long-term debt

8,319

7,526

Other liabilities

3,550

3,516

Equity

Common stockholders' equity

20,282

20,379

Noncontrolling interests in subsidiaries

Total equity

20,298

20,394

Total liabilities and equity

$ 41,964

$ 42,208

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

Nine Months Ended June 30,

2025

2026

Operating activities

Net earnings

$ 1,609

$ 1,942

Earnings from discontinued operations, net of tax

(7)

—

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

Depreciation and amortization

1,139

1,105

Stock compensation

198

181

Changes in operating working capital

(80)

(320)

Other, net

(195)

(6)

Cash from continuing operations

2,664

2,902

Cash from discontinued operations

(576)

—

Cash provided by operating activities

2,088

2,902

Investing activities

Capital expenditures

(263)

(284)

Purchases of businesses, net of cash and equivalents acquired

(36)

—

Other, net

(94)

(38)

Cash used in investing activities

(393)

(322)

Financing activities

Net increase in short-term borrowings

1,419

1,434

Proceeds from short-term borrowings greater than three months

5,292

6,229

Payments of short-term borrowings greater than three months

(1,349)

(7,028)

Proceeds from long-term debt

1,544

—

Payments of long-term debt

(503)

(588)

Dividends paid

(895)

(935)

Purchases of common stock

(1,147)

(898)

Purchase of noncontrolling interest

(7,244)

—

Settlement of AspenTech share awards

(76)

—

Other, net

(60)

(134)

Cash used in financing activities

(3,019)

(1,920)

Effect of exchange rate changes on cash and equivalents

(45)

(24)

Increase (decrease) in cash and equivalents

(1,369)

636

Beginning cash and equivalents

3,588

1,544

Ending cash and equivalents

$ 2,219

$ 2,180

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 June 30,

2025

2026

Reported

Underlying

Sales

Control Systems & Software

$ 1,120

$ 1,199

7 %

Test & Measurement

360

445

23 %

Software & Systems

$ 1,480

$ 1,644

11 %

Sensors

1,013

1,091

8 %

7 %

Final Control

1,522

1,586

4 %

3 %

Intelligent Devices

$ 2,535

$ 2,677

6 %

5 %

Safety & Productivity

$ 538

$ 552

3 %

2 %

Total

$ 4,553

$ 4,873

7 %

6 %

Sales Growth by Geography

Quarter Ended

June 30,

Americas

8 %

Europe

(1) %

Asia, Middle East & Africa

8 %

Table 4 cont.

Nine Months Ended June 30,

2025

2026

Reported

Underlying

Sales

Control Systems & Software

$ 3,235

$ 3,332

3 %

2 %

Test & Measurement

1,077

1,268

18 %

15 %

Software & Systems

$ 4,312

$ 4,600

7 %

5 %

Sensors

2,986

3,111

4 %

2 %

Final Control

4,315

4,469

4 %

2 %

Intelligent Devices

$ 7,301

$ 7,580

4 %

2 %

Safety & Productivity

$ 1,548

$ 1,601

3 %

2 %

Total

$ 13,161

$ 13,781

5 %

3 %

Sales Growth by Geography

Nine Months Ended

June 30,

Americas

6 %

Europe

(1) %

Asia, Middle East & Africa

1 %

Table 4 cont.

Quarter Ended June 30,

2025

2026

As Reported

(GAAP)

Adjusted

EBITA

(Non-GAAP)

Reported

(GAAP)

Adjusted

EBITA

(Non-GAAP)

Earnings

Control Systems & Software

$ 271

$ 393

$ 285

$ 391

Margins

24.2 %

35.2 %

23.8 %

32.6 %

Test & Measurement

(26)

132

Margins

(7.2) %

22.4 %

2.6 %

29.6 %

Software & Systems

$ 245

$ 474

$ 296

$ 523

Margins

16.6 %

32.1 %

18.0 %

31.8 %

Sensors

246

259

303

323

Margins

24.2 %

25.5 %

27.7 %

29.7 %

Final Control

351

389

349

424

Margins

23.1 %

25.5 %

22.0 %

26.7 %

Intelligent Devices

$ 597

$ 648

$ 652

$ 747

Margins

23.5 %

25.5 %

24.3 %

27.9 %

Safety & Productivity

$ 103

$ 110

$ 93

$ 117

Margins

19.2 %

20.4 %

16.9 %

21.2 %

Corporate items and interest expense, net:

Stock compensation

(71)

(45)

(68)

(64)

Unallocated pension and postretirement costs

Corporate and other

(72)

(31)

(1)

(49)

Interest expense, net

(95)

—

(85)

—

Pretax Earnings / Adjusted EBITA

$ 734

$ 1,183

$ 916

$ 1,303

Margins

16.1 %

26.0 %

18.8 %

26.7 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$ 1,232

$ 1,387

Margins

27.1 %

28.5 %

Table 4 cont.

Quarter Ended June 30,

2025

2026

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Control Systems & Software

$ 114

$ 8

$ 100

$ 6

Test & Measurement

107

—

108

Software & Systems

$ 221

$ 8

$ 208

$ 19

Sensors

Final Control

Intelligent Devices

$ 41

$ 10

$ 38

$ 57

Safety & Productivity

$ 7

$ —

$ 7

$ 17

Corporate

—

23 3

—

Total

$ 269

$ 41

$ 253

$ 99

1 Amortization of intangibles includes $50 and $49 reported in cost of sales for the three months ended June 30, 2025 and 2026, respectively.

2 Restructuring and related costs includes $4 and $12 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2025 and 2026, respectively.

3 Corporate restructuring and related costs of $23 for the three months ended June 30, 2025 includes $20 related to integration-related stock compensation expense attributable to AspenTech.

Quarter Ended June 30,

Depreciation and Amortization

2025

2026

Control Systems & Software

$ 135

$ 128

Test & Measurement

119

120

Software & Systems

254

248

Sensors

Final Control

Intelligent Devices

Safety & Productivity

Corporate

Total

$ 372

$ 377

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 June 30,

2025

2026

Stock compensation (GAAP)

$ (71)

$ (68)

Integration-related stock compensation expense

26 1

Adjusted stock compensation (non-GAAP)

$ (45)

$ (64)

Quarter Ended June 30,

2025

2026

Corporate and other (GAAP)

$ (72)

$ (1)

Corporate restructuring and related costs

Acquisition / divestiture costs

IEEPA tariff refunds

—

(82)

Adjusted corporate and other (non-GAAP)

$ (31)

$ (49)

1 Integration-related stock compensation expense for the three months ended June 30, 2025 includes $24 related to AspenTech of which $20 is reported as restructuring costs, and $2 related to NI

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 and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring and related costs, 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 June 30,

2025

2026

Pretax earnings

$ 734

$ 916

Percent of sales

16.1 %

18.8 %

Interest expense, net

Amortization of intangibles

269

253

Restructuring and related costs

Acquisition/divestiture fees and related costs

IEEPA tariff refunds

—

(82)

Adjusted EBITA

$ 1,183

$ 1,303

Percent of sales

26.0 %

26.7 %

Quarter Ended June 30,

2025

2026

GAAP earnings from continuing operations per share

$ 1.03

$ 1.28

Amortization of intangibles

0.37

0.35

Restructuring and related costs

0.06

0.13

Acquisition/divestiture fees and related costs

0.06

0.05

Discrete taxes

—

0.01

IEEPA tariff refunds

—

(0.11)

Adjusted earnings from continuing operations per share

$ 1.52

$ 1.71

Table 6 cont.

Quarter Ended June 30, 2026

Pretax

Earnings

Income

Taxes

Earnings

from Cont.

Ops.

Non-

Controlling

Interests

Net

Earnings

Common

Stockholders

Diluted

Earnings

Per

As reported (GAAP)

$ 916

$ 198

$ 718

$ —

$ 718

$ 1.28

Amortization of intangibles

253

194

—

194

0.35

Restructuring and related costs

—

0.13

Acquisition/divestiture fees and related costs

—

0.05

Discrete taxes

—

(7)

—

0.01

IEEPA tariff refunds

(82)

(19)

(63)

—

(63)

(0.11)

Adjusted (non-GAAP)

$ 1,218

$ 258

$ 960

$ —

$ 960

$ 1.71

Interest expense, net

Adjusted EBITA (non-GAAP)

$ 1,303

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

2 Restructuring and related costs includes $12 reported in cost of sales and selling, general and administrative expenses.

Reconciliations of Non-GAAP Financial Measures & Other

Table 7

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions,

except per share amounts). See tables 4 through 6 for additional non-GAAP reconciliations.

2026 Q3 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Control Systems & Software

7 %

— %

7 %

Test & Measurement

23 %

— %

23 %

Software & Systems

11 %

— %

11 %

Sensors

8 %

(1) %

— %

7 %

Final Control

4 %

(1) %

— %

3 %

Intelligent Devices

6 %

(1) %

— %

5 %

Safety & Productivity

3 %

(1) %

— %

2 %

Emerson

7 %

(1) %

— %

6 %

Nine Months Ended June 30, 2026 Underlying Sales

Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Control Systems & Software

3 %

(1) %

— %

2 %

Test & Measurement

18 %

(3) %

— %

15 %

Software & Systems

7 %

(2) %

— %

5 %

Sensors

4 %

(2) %

— %

2 %

Final Control

4 %

(2) %

— %

2 %

Intelligent Devices

4 %

(2) %

— %

2 %

Safety & Productivity

3 %

(1) %

— %

2 %

Emerson

5 %

(2) %

— %

3 %

Underlying Growth Guidance

2026 Q4

Guidance

2026

Guidance

Reported (GAAP)

~5%

(Favorable) / Unfavorable FX

~(1.5 pts)

(Acquisitions) / Divestitures

Underlying (non-GAAP)

~5%

~3.5%

2025 Q3 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Control Systems & Software

$ 271

24.2 %

$ 114

$ 8

$ 393

35.2 %

Test & Measurement

(26)

(7.2) %

107

—

22.4 %

Software & Systems

$ 245

16.6 %

$ 221

$ 8

$ 474

32.1 %

Sensors

246

24.2 %

259

25.5 %

Final Control

351

23.1 %

389

25.5 %

Intelligent Devices

$ 597

23.5 %

$ 41

$ 10

$ 648

25.5 %

Safety & Productivity

$ 103

19.2 %

$ 7

$ —

$ 110

20.4 %

2026 Q3 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Control Systems & Software

$ 285

23.8 %

$ 100

$ 6

$ 391

32.6 %

Test & Measurement

2.6 %

108

132

29.6 %

Software & Systems

$ 296

18.0 %

$ 208

$ 19

$ 523

31.8 %

Sensors

303

27.7 %

323

29.7 %

Final Control

349

22.0 %

424

26.7 %

Intelligent Devices

$ 652

24.3 %

$ 38

$ 57

$ 747

27.9 %

Safety & Productivity

$ 93

16.9 %

$ 7

$ 17

$ 117

21.2 %

Total Adjusted Segment EBITA

2025 Q3

2026 Q3

Pretax earnings (GAAP)

$ 734

$ 916

Margin

16.1 %

18.8 %

Corporate items and interest expense, net

211

125

Amortization of intangibles

269

253

Restructuring and related costs

Adjusted segment EBITA (non-GAAP)

$ 1,232

$ 1,387

Margin

27.1 %

28.5 %

Free Cash Flow

2025 Q3

2026 Q3

2026E

($ in billions)

Operating cash flow (GAAP)

$ 1,062

$ 1,425

~$4.1

Capital expenditures

(92)

(102)

~(0.45)

Free cash flow (non-GAAP)

$ 970

$ 1,323

~$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.

SOURCE Emerson