Emerson Reports Second Quarter 2026 Results; Updates 2026 Outlook

Emerson Reports Second Quarter 2026 Results; Updates 2026 Outlook ST. LOUIS, May 5, 2026 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results for its second quarter ended March 31, 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 June 10, 2026 to stockholders of record on May 15, 2026.

(dollars in millions, except per share)

2025 Q2

2026 Q2

Change

Underlying Orders 1

5 %

Net Sales

$4,432

$4,562

3 %

Underlying Sales 2

0.5 %

Pretax Earnings

$629

$793

Margin

14.2 %

17.4 %

320 bps

Adjusted Segment EBITA 3

$1,240

$1,258

Margin

28.0 %

27.6 %

(40) bps

GAAP Earnings Per Share

$0.86

$1.10

28 %

Adjusted Earnings Per Share 4

$1.48

$1.54

4 %

Operating Cash Flow

$825

$779

(6) %

Free Cash Flow

$738

$694

(6) %

Management Commentary

"Emerson's second quarter results reflect our ability to deliver in a dynamic environment," said Emerson President and Chief Executive Officer 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 & Systems, with sustained momentum in our growth verticals."

Karsanbhai continued, "I want to thank our employees and customers in the Middle East for their unwavering commitment and resiliency. As we look ahead, 2026 continues to develop largely as expected with a strong second half, supported by orders momentum and a robust backlog."

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 Q3

2026

Net Sales Growth

~5.5%

~4.5%

Underlying Sales Growth

~5%

~3%

Earnings Per Share

$1.22 - $1.27

$4.79 - $4.89

Amortization of intangibles

~$0.34

~$1.38

Restructuring and related costs

~$0.06

~$0.18

Acquisition/divestiture fees and related costs

~$0.02

~$0.06

Discrete taxes

~$0.01

~$0.04

Adjusted Earnings Per Share

$1.65 - $1.70

$6.45 - $6.55

Operating Cash Flow

$4.0B - $4.1B

Free Cash Flow

$3.5B - $3.6B

1 Underlying orders do not include AspenTech.

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

3 Adjusted segment EBITA represents segment earnings excluding 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 second 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 March 31,

Six Months Ended March 31,

2025

2026

2025

2026

Net sales

$ 4,432

$ 4,562

$ 8,608

$ 8,908

Cost of sales

2,061

2,140

4,002

4,174

SG&A expenses

1,283

1,316

2,506

2,559

Other deductions, net

418

229

646

434

Interest expense, net

173

Earnings before income taxes

629

793

1,404

1,568

Income taxes

199

175

382

344

Net earnings

430

618

1,022

1,224

Less: Noncontrolling interests in subsidiaries

(55)

—

(48)

Net earnings common stockholders

$ 485

$ 618

$ 1,070

$ 1,223

Diluted avg. shares outstanding

565.4

563.0

568.2

563.5

Diluted earnings per share common stockholders

Diluted earnings per common share

$ 0.86

$ 1.10

$ 1.88

$ 2.17

Quarter Ended March 31,

Six Months Ended March 31,

2025

2026

2025

2026

Other deductions, net

Amortization of intangibles

$ 229

$ 205

$ 457

$ 409

Restructuring costs

Other

168

(21)

157

(28)

Total

$ 418

$ 229

$ 646

$ 434

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

Sept 30, 2025

March 31, 2026

Assets

Cash and equivalents

$ 1,544

$ 1,791

Receivables, net

3,101

3,158

Inventories

2,213

2,452

Other current assets

1,725

1,850

Total current assets

8,583

9,251

Property, plant & equipment, net

2,871

2,850

Goodwill

18,193

18,153

Other intangible assets

9,458

8,954

Other

2,859

2,880

Total assets

$ 41,964

$ 42,088

Liabilities and equity

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

$ 4,797

$ 5,804

Accounts payable

1,384

1,468

Accrued expenses

3,616

3,382

Total current liabilities

9,797

10,654

Long-term debt

8,319

7,555

Other liabilities

3,550

3,560

Equity

Common stockholders' equity

20,282

20,303

Noncontrolling interests in subsidiaries

Total equity

20,298

20,319

Total liabilities and equity

$ 41,964

$ 42,088

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

Six Months Ended March 31,

2025

2026

Operating activities

Net earnings

$ 1,022

$ 1,224

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

Depreciation and amortization

767

728

Stock compensation

127

113

Changes in operating working capital

(203)

(613)

Other, net

(110)

Cash from continuing operations

1,603

1,478

Cash from discontinued operations

(585)

—

Cash provided by operating activities

1,018

1,478

Investing activities

Capital expenditures

(170)

(182)

Purchases of businesses, net of cash and equivalents acquired

(36)

—

Other, net

(58)

(24)

Cash used in investing activities

(264)

(206)

Financing activities

Net increase in short-term borrowings

2,628

2,027

Proceeds from short-term borrowings greater than three months

2,496

4,447

Payments of short-term borrowings greater than three months

—

(5,611)

Proceeds from long-term debt

1,544

—

Payments of long-term debt

(2)

(587)

Dividends paid

(598)

(624)

Purchases of common stock

(1,122)

(542)

Purchase of noncontrolling interest

(7,171)

—

Settlement of AspenTech share awards

(76)

—

Other, net

(81)

(123)

Cash used in financing activities

(2,382)

(1,013)

Effect of exchange rate changes on cash and equivalents

(73)

(12)

Increase (decrease) in cash and equivalents

(1,701)

247

Beginning cash and equivalents

3,588

1,544

Ending cash and equivalents

$ 1,887

$ 1,791

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 March 31,

2025

2026

Reported

Underlying

Sales

Control Systems & Software

$ 1,093

$ 1,089

— %

(2) %

Test & Measurement

358

414

16 %

12 %

Software & Systems

$ 1,451

$ 1,503

4 %

1 %

Sensors

1,000

1,024

2 %

— %

Final Control

1,459

1,488

2 %

(1) %

Intelligent Devices

$ 2,459

$ 2,512

2 %

(1) %

Safety & Productivity

$ 522

$ 547

5 %

2 %

Total

$ 4,432

$ 4,562

3 %

0.5 %

Sales Growth by Geography

Quarter Ended

March 31,

Americas

5 %

Europe

(4) %

Asia, Middle East & Africa

(5) %

Table 4 cont.

Six Months Ended March 31,

2025

2026

Reported

Underlying

Sales

Control Systems & Software

$ 2,116

$ 2,133

1 %

(1) %

Test & Measurement

717

823

15 %

12 %

Software & Systems

$ 2,833

$ 2,956

4 %

2 %

Sensors

1,972

2,020

2 %

— %

Final Control

2,793

2,882

3 %

— %

Intelligent Devices

$ 4,765

$ 4,902

3 %

— %

Safety & Productivity

$ 1,010

$ 1,050

4 %

2 %

Total

$ 8,608

$ 8,908

3 %

1 %

Sales Growth by Geography

Six Months Ended

March 31,

Americas

4 %

Europe

(1) %

Asia, Middle East & Africa

(3) %

Table 4 cont.

Quarter Ended March 31,

2025

2026

As Reported (GAAP)

Adjusted EBITA

(Non-GAAP)

As Reported (GAAP)

Adjusted EBITA

(Non-GAAP)

Earnings

Control Systems & Software

$ 238

$ 375

$ 224

$ 329

Margins

21.7 %

34.2 %

20.6 %

30.2 %

Test & Measurement

(24)

(5)

109

Margins

(6.8) %

24.3 %

(1.2) %

26.3 %

Software & Systems

$ 214

$ 462

$ 219

$ 438

Margins

14.6 %

31.7 %

14.6 %

29.2 %

Sensors

266

279

276

296

Margins

26.6 %

27.9 %

27.0 %

28.9 %

Final Control

355

386

353

405

Margins

24.4 %

26.5 %

23.7 %

27.2 %

Intelligent Devices

$ 621

$ 665

$ 629

$ 701

Margins

25.3 %

27.1 %

25.0 %

27.9 %

Safety & Productivity

$ 105

$ 113

$ 109

$ 119

Margins

20.2 %

21.8 %

19.8 %

21.7 %

Corporate items and interest expense, net:

Stock compensation

(59)

(50)

(57)

(53)

Unallocated pension and postretirement costs

Corporate and other

(238)

(74)

(51)

(39)

Interest expense, net

(41)

—

(84)

—

Pretax Earnings / Adjusted EBITA

$ 629

$ 1,143

$ 793

$ 1,194

Margins

14.2 %

25.8 %

17.4 %

26.2 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$ 1,240

$ 1,258

Margins

28.0 %

27.6 %

Table 4 cont

Quarter Ended March 31,

2025

2026

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Control Systems & Software

$ 128

$ 9

$ 101

$ 4

Test & Measurement

105

107

Software & Systems

$ 233

$ 15

$ 208

$ 11

Sensors

Final Control

Intelligent Devices

$ 39

$ 5

$ 39

$ 33

Safety & Productivity

$ 6

$ 2

$ 7

$ 3

Corporate

—

Total

$ 278

$ 27

$ 254

$ 53

1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended March 31, 2025 and 2026,

respectively.

2 Restructuring and related costs includes $6 and $8 reported in cost of sales and selling, general and administrative

expenses for the three months ended March 31, 2025 and 2026, respectively.

Quarter Ended March 31,

Depreciation and Amortization

2025

2026

Control Systems & Software

$ 148

$ 125

Test & Measurement

119

120

Software & Systems

267

245

Sensors

Final Control

Intelligent Devices

Safety & Productivity

Corporate

Total

$ 384

$ 369

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 March 31,

2025

2026

Stock compensation (GAAP)

$ (59)

$ (57)

Integration-related stock compensation expense

Adjusted stock compensation (non-GAAP)

$ (50)

$ (53)

Quarter Ended March 31,

2025

2026

Corporate and other (GAAP)

$ (238)

$ (51)

Corporate restructuring and related costs

Acquisition / divestiture costs

160

Adjusted corporate and other (non-GAAP)

$ (74)

$ (39)

1 Integration-related stock compensation expense for the three months ended March 31, 2025 relates to AspenTech and includes $1 reported as restructuring costs.

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 March 31,

2025

2026

Pretax earnings

$ 629

$ 793

Percent of sales

14.2 %

17.4 %

Interest expense, net

Amortization of intangibles

278

254

Restructuring and related costs

Acquisition/divestiture fees and related costs

168

Adjusted EBITA

$ 1,143

$ 1,194

Percent of sales

25.8 %

26.2 %

Quarter Ended March 31,

2025

2026

GAAP earnings per share

$ 0.86

$ 1.10

Amortization of intangibles

0.32

0.35

Restructuring and related costs

0.04

0.07

Discrete taxes

0.09

0.01

Acquisition/divestiture fees and related costs

0.17

0.01

Adjusted earnings per share

$ 1.48

$ 1.54

Table 6 cont.

Quarter Ended March 31, 2026

Pretax

Earnings

Income

Taxes

Net Earnings

Non-Controlling

Interests

Net

Earnings

Common

Stockholders

Diluted

Earnings

Per

As reported (GAAP)

$ 793

$ 175

$ 618

$ —

$ 618

$ 1.10

Amortization of intangibles

254

195

—

195

0.35

Restructuring and related costs

—

0.07

Acquisition/divestiture fees and related costs

—

0.01

Discrete taxes

—

(6)

—

0.01

Adjusted (non-GAAP)

$ 1,110

$ 241

$ 869

$ —

$ 869

$ 1.54

Interest expense, net

Adjusted EBITA (non-GAAP)

$ 1,194

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

2 Restructuring and related costs includes $8 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 Q2 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Control Systems & Software

— %

(2) %

— %

(2) %

Test & Measurement

16 %

(4) %

— %

12 %

Software & Systems

4 %

(3) %

— %

1 %

Sensors

2 %

(2) %

— %

Final Control

2 %

(3) %

— %

(1) %

Intelligent Devices

2 %

(3) %

— %

(1) %

Safety & Productivity

5 %

(3) %

— %

2 %

Emerson

3 %

(2.5) %

— %

0.5 %

Six Months Ended March 31, 2026 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Control Systems & Software

1 %

(2) %

— %

(1) %

Test & Measurement

15 %

(3) %

— %

12 %

Software & Systems

4 %

(2) %

— %

2 %

Sensors

2 %

(2) %

— %

Final Control

3 %

(3) %

— %

Intelligent Devices

3 %

(3) %

— %

Safety & Productivity

4 %

(2) %

— %

2 %

Emerson

3 %

(2) %

— %

1 %

Underlying Growth Guidance

2026 Q3

Guidance

2026

Guidance

Reported (GAAP)

~5.5%

~4.5%

(Favorable) / Unfavorable FX

~(0.5 pts)

~(1.5 pts)

(Acquisitions) / Divestitures

Underlying (non-GAAP)

~5%

~3%

2025 Q2 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Control Systems & Software

$ 238

21.7 %

$ 128

$ 9

$ 375

34.2 %

Test & Measurement

(24)

(6.8) %

105

24.3 %

Software & Systems

$ 214

14.6 %

$ 233

$ 15

$ 462

31.7 %

Sensors

266

26.6 %

279

27.9 %

Final Control

355

24.4 %

386

26.5 %

Intelligent Devices

$ 621

25.3 %

$ 39

$ 5

$ 665

27.1 %

Safety & Productivity

$ 105

20.2 %

$ 6

$ 2

$ 113

21.8 %

2026 Q2 Adjusted Segment EBITA

EBIT

Margin

Amortization

Intangibles

Restructuring

and Related

Costs

Adjusted

Segment

EBITA

Adjusted

Segment

EBITA

Margin

Control Systems & Software

$ 224

20.6 %

$ 101

$ 4

$ 329

30.2 %

Test & Measurement

(5)

(1.2) %

107

109

26.3 %

Software & Systems

$ 219

14.6 %

$ 208

$ 11

$ 438

29.2 %

Sensors

276

27.0 %

296

28.9 %

Final Control

353

23.7 %

405

27.2 %

Intelligent Devices

$ 629

25.0 %

$ 39

$ 33

$ 701

27.9 %

Safety & Productivity

$ 109

19.8 %

$ 7

$ 3

$ 119

21.7 %

Total Adjusted Segment EBITA

2025 Q2

2026 Q2

Pretax earnings (GAAP)

$ 629

$ 793

Margin

14.2 %

17.4 %

Corporate items and interest expense, net

311

164

Amortization of intangibles

278

254

Restructuring and related costs

Adjusted segment EBITA (non-GAAP)

$ 1,240

$ 1,258

Margin

28.0 %

27.6 %

Free Cash Flow

2025 Q2

2026 Q2

2025E

($ in billions)

Operating cash flow (GAAP)

$ 825

$ 779

$4.0 - $4.1

Capital expenditures

(87)

(85)

~(0.45)

Free cash flow (non-GAAP)

$ 738

$ 694

$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.

SOURCE Emerson