Emerson Reports First Quarter 2026 Results; Updates 2026 Outlook

Rhea-AI Summary

Emerson (NYSE: EMR) reported Q1 fiscal 2026 results and updated its 2026 outlook. Net sales were $4,346 million, up 4% year-over-year, and adjusted EPS was $1.46, up 6%. Underlying orders grew 9% and management declared a quarterly dividend of $0.555 per share.

The company expects fiscal 2026 adjusted EPS of $6.40–$6.55, net sales growth of ~5.5%, and plans to return approximately $2.2 billion to shareholders via ~$1.0 billion repurchases and ~$1.2 billion dividends.

Positive

• Underlying orders +9% in Q1
• Net sales $4,346M, up 4% YoY
• Adjusted EPS $1.46, +6% YoY
• 2026 outlook: Adjusted EPS $6.40–$6.55
• Planned shareholder returns of ~$2.2B (repurchases + dividends)

Negative

• Pretax margin down (18.6% to 17.8%, (80) bps)
• Operating cash flow down 10% QoQ to $699M
• Free cash flow down 13% QoQ to $602M
• Adjusted segment EBITA margin down 30 bps to 27.7%

News Market Reaction

+2.33% 1.6x vol

7 alerts

+2.33% News Effect

+2.6% Peak in 14 hr 5 min

+$1.95B Valuation Impact

$85.45B Market Cap

1.6x Rel. Volume

On the day this news was published, EMR gained 2.33%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.6% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $1.95B to the company's valuation, bringing the market cap to $85.45B at that time. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 Net Sales: $4,346M Q1 2026 GAAP EPS: $1.07 Q1 2026 Adjusted EPS: $1.46 +5 more

8 metrics

Q1 2026 Net Sales $4,346M Fiscal Q1 2026 net sales, up 4% year-over-year

Q1 2026 GAAP EPS $1.07 GAAP earnings per share for Q1 2026, up 5%

Q1 2026 Adjusted EPS $1.46 Adjusted earnings per share for Q1 2026, up 6%

Q1 2026 Operating Cash Flow $699M Operating cash flow for Q1 2026, down 10%

Q1 2026 Free Cash Flow $602M Free cash flow for Q1 2026, down 13%

Quarterly Dividend $0.555/share Cash dividend payable March 10, 2026

FY 2026 Adjusted EPS Guide $6.40 - $6.55 Full-year 2026 adjusted EPS outlook

FY 2026 Cash Returns $2.2B Planned ~$1.0B buybacks and ~$1.2B dividends in 2026

Market Reality Check

Price: $150.94 Vol: Volume 4,514,678 is 1.42x...

normal vol

$150.94 Last Close

Volume Volume 4,514,678 is 1.42x the 20-day average of 3,174,928, indicating elevated pre-news activity. normal

Technical Price $148.63 trades above the 200-day MA of $131.45 and about 2.54% below the 52-week high of $152.50.

Peers on Argus

EMR was up about 1.14% pre-release, while key peers ITW, PH, ETN, CMI and ROK al...

EMR was up about 1.14% pre-release, while key peers ITW, PH, ETN, CMI and ROK all showed positive moves between 1.12% and 2.99%. Despite broad strength among industrial automation peers and overlapping earnings headlines for ITW and ETN, the momentum scanner did not flag a coordinated sector move.

Common Catalyst Earnings season for industrial and automation peers, with multiple companies reporting quarterly results and 2026 outlooks.

Previous Earnings Reports

5 past events · Latest: Nov 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 05	Q4/FY 2025 earnings	Positive	-3.8%	Q4 and FY 2025 beats, higher margins, guidance and larger cash returns.
Aug 06	Q3 2025 earnings	Positive	-4.7%	Strong Q3 growth, margin expansion and higher 2025 outlook with larger returns.
May 07	Q2 2025 earnings	Positive	+2.4%	Modest sales growth, higher adjusted EPS and record margins with raised guidance.
Feb 05	Q1 2025 earnings	Positive	-2.3%	Strong Q1 growth, major margin improvement and increased FY 2025 outlook.
Nov 05	FY 2024 earnings	Positive	+7.2%	Double‑digit sales growth, higher EPS and strong FY 2025 guidance with dividend hike.

Pattern Detected

Earnings releases have often produced mixed reactions: strong fundamental updates sometimes saw negative next-day moves, with a slight skew toward divergence between positive news and immediate price action.

Recent Company History

Over the last few earnings cycles, Emerson has reported consistent growth in net sales, adjusted EPS and margins, alongside increased cash returns via dividends and buybacks. Prior releases highlighted higher adjusted EPS (up to $6.00 for FY 2025), margin expansion and multi‑year guidance with significant planned shareholder returns. However, price reactions were split: some strong quarters triggered gains, while others saw selloffs, indicating that expectations and positioning often played a major role in short-term moves.

Historical Comparison

earnings

+4.1 %

Average Historical Move

Historical Analysis

Across the last five earnings releases, EMR’s average move was about 4.08%, with a mix of positive and negative reactions despite generally strong results and guidance updates.

Typical Pattern

Earnings updates have emphasized steady sales growth, expanding adjusted EBITA margins, rising adjusted EPS and a multi‑year plan to increase cash returns through dividends and share repurchases.

Market Pulse Summary

This announcement highlights steady Q1 2026 growth, higher GAAP and adjusted EPS, and continued emph...

Analysis

This announcement highlights steady Q1 2026 growth, higher GAAP and adjusted EPS, and continued emphasis on software-led automation and innovation. Emerson reaffirmed a robust 2026 framework, including adjusted EPS of $6.40–$6.55 and plans to return about $2.2B via buybacks and dividends. Investors may focus on trends in operating and free cash flow, execution in high‑growth verticals and how future quarters track against the updated sales and earnings outlook.

Key Terms

adjusted segment ebita, free cash flow, underlying sales, earnings per share, +4 more

8 terms

adjusted segment ebita financial

"Adjusted Segment EBITA 3 | $1,169 | $1,203"

Adjusted segment EBITA measures the operating profit of a specific part of a company before interest, taxes and amortization, with unusual or one-time gains and costs removed. It tells investors how much recurring cash a particular business unit is generating—like assessing the daily earnings of a single store in a chain after ignoring a one-off inventory write-down—so it helps compare performance across periods and between peers without distortion from irregular events.

free cash flow financial

"Free Cash Flow | $694 | $602 | (13) %"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

underlying sales financial

"Underlying Sales 2 | | 2 %"

Underlying sales are the company’s revenue figures adjusted to remove one-time or external effects—for example recent acquisitions or disposals, large timing differences, and currency swings—so that sales reflect the ongoing performance of the core business. Investors care because this “clean” view makes it easier to judge whether demand is truly growing or shrinking, and to compare performance across periods or between companies without noise from temporary events.

earnings per share financial

"GAAP Earnings Per Share | $1.02 | $1.07 | 5 %"

Earnings per share represent the amount of profit a company makes for each share of its stock, similar to how a pie’s total size can be divided into slices for each person. It helps investors understand how profitable the company is on a per-share basis, making it easier to compare its performance over time or against other companies. Higher earnings per share generally indicate better profitability and can influence a company's stock value.

amortization of intangibles financial

"Amortization of intangibles | ~$0.35 | ~$1.38"

Amortization of intangibles is the process of gradually spreading out the cost of non-physical assets, like trademarks or patents, over their useful life. It helps businesses show how these assets lose value over time, similar to how a car’s value decreases as you use it. This process matters because it provides a more accurate picture of a company’s health and profitability.

restructuring and related costs financial

"Restructuring and related costs | ~$0.06 | ~$0.14"

Restructuring and related costs are the one-time expenses a company incurs when it reorganizes its business — for example, severance pay for laid-off workers, closing stores or factories, breaking leases, writing down assets, and hiring advisors. Investors care because these upfront bills can make profits look worse now but may lead to lower ongoing costs later; like renovating a house, a big short-term outlay can improve future efficiency and cash flow, so analysts separate them from regular operating results.

discrete taxes financial

"Discrete taxes | ~$0.01 | ~$0.04"

Discrete taxes are one-time tax charges or credits that arise from unusual events—such as a sale of an asset, a tax audit adjustment, or a change in tax law—rather than from a company’s routine operations. Investors care because these items can make a single quarter’s net profit and effective tax rate look unusually high or low, similar to how a one-off repair bill can distort a household’s monthly budget, so analysts separate them to see underlying performance.

share repurchases financial

"returning ~$2.2B through ~$1B share repurchases and ~$1.2B of dividends"

Share repurchases occur when a company buys back its own shares from the open market. This process reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's future. For investors, share repurchases can be a sign that the company believes its stock is undervalued and may lead to higher share prices.

AI-generated analysis. Not financial advice.

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

FAQ

What were Emerson (EMR) Q1 fiscal 2026 net sales and growth?

Emerson reported Q1 net sales of $4,346 million, a 4% increase year-over-year. According to Emerson, the rise reflects underlying demand across automation technology and strength in key regions such as North America, India and Middle East & Africa.

How did Emerson (EMR) perform on profitability in Q1 2026?

Emerson posted adjusted EPS of $1.46, a 6% increase versus prior year. According to Emerson, profitability improved despite slight margin pressure, driven by execution in Software & Systems and operational actions across segments.

What guidance did Emerson (EMR) give for full-year fiscal 2026 adjusted EPS?

Emerson expects adjusted EPS of $6.40–$6.55 for fiscal 2026. According to Emerson, this outlook includes amortization, restructuring and expects operating cash flow of about $4.0–$4.1 billion and free cash flow of $3.5–$3.6 billion.

How much cash return did Emerson (EMR) plan for shareholders in 2026?

Emerson plans to return approximately $2.2 billion to shareholders in 2026 via about $1.0 billion in repurchases and $1.2 billion in dividends. According to Emerson, capital allocation is pivoting to return cash while maintaining investment in strategic programs.

Did Emerson (EMR) report any cash flow or margin concerns in Q1 2026?

Emerson reported operating cash flow of $699M (down 10%) and free cash flow of $602M (down 13%). According to Emerson, these declines coincided with modest margin compression, including an 80 basis-point pretax margin decrease versus prior year.