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 Orders 1

9 %

Net Sales

$4,175

$4,346

4 %

Underlying Sales 2

2 %

Pretax Earnings

$775

Margin

18.6 %

17.8 %

(80) bps

Adjusted Segment EBITA 3

$1,169

$1,203

Margin

28.0 %

27.7 %

(30) bps

GAAP Earnings Per Share

$1.02

$1.07

5 %

Adjusted Earnings Per Share 4

$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

Earnings before income taxes

775

Income taxes

182

169

Net earnings

593

606

Less: Noncontrolling interests in subsidiaries

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

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

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

Changes in operating working capital

(154)

(357)

Other, net

(113)

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

(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,

2024

2025

As Reported

(GAAP)

Adjusted

EBITA

(Non-GAAP)

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)

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

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,

2024

2025

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Amortization of

Intangibles 1

Restructuring

and

Related Costs 2

Control Systems & Software

$ 127

$ 2

$ 101

$ 1

Test & Measurement

105

(1)

107

—

Software & Systems

$ 232

$ 1

$ 208

$ 1

Sensors

Final Control

Intelligent Devices

$ 39

$ 8

$ 39

$ 7

Safety & Productivity

$ 7

$ 1

$ 7

$ 1

Corporate

—

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

Final Control

Intelligent Devices

Safety & Productivity

Corporate

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

Adjusted stock compensation (non-GAAP)

$ (66)

$ (51)

Quarter Ended Dec 31,

2024

2025

Corporate and other (GAAP)

$ (57)

$ (49)

Corporate restructuring and related costs

Acquisition / divestiture costs

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

Percent of sales

18.6 %

17.8 %

Interest expense, net

Amortization of intangibles

278

254

Restructuring and related costs

Acquisition/divestiture fees and related costs

Adjusted EBITA

$ 1,096

$ 1,141

Percent of sales

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

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

As reported (GAAP)

$ 775

$ 169

$ 606

$ 1

$ 605

$ 1.07

Amortization of intangibles

254

195

—

195

0.35

Restructuring and related costs

—

0.02

Acquisition/divestiture fees and related costs

—

0.01

Discrete Taxes

—

(5)

—

0.01

Adjusted (non-GAAP)

$ 1,051

$ 228

$ 823

$ 1

$ 822

$ 1.46

Interest expense, net

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

Margin

Amortization

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)

25.5 %

Software & Systems

$ 195

14.1 %

$ 232

$ 1

$ 428

31.1 %

Sensors

285

29.3 %

296

30.5 %

Final Control

305

22.9 %

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

Margin

Amortization

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

3.6 %

107

—

121

29.7 %

Software & Systems

$ 246

17.0 %

$ 208

$ 1

$ 455

31.3 %

Sensors

266

26.7 %

282

28.3 %

Final Control

331

23.8 %

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

Margin

18.6 %

17.8 %

Corporate items and interest expense, net

106

165

Amortization of intangibles

278

254

Restructuring and related costs

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.

SOURCE Emerson