Emerson Reports Second Quarter 2026 Results; Updates 2026 Outlook

Rhea-AI Summary

Emerson (NYSE: EMR) reported Q2 fiscal 2026 results for the quarter ended March 31, 2026, and updated full‑year guidance. Net sales were $4,562M (+3%), pretax earnings were $793M (+26%) with a pretax margin of 17.4% (+320 bps), and GAAP EPS was $1.10 (+28%). The company declared a quarterly cash dividend of $0.555 per share payable June 10, 2026. Emerson expects FY2026 Adjusted EPS of $6.45–$6.55 and plans to return approximately $2.2B to shareholders via ~$1B buybacks and ~$1.2B dividends.

Positive

• Pretax earnings +26% to $793M
• GAAP EPS +28% to $1.10
• Pretax margin improved 320 bps
• Planned cash returns of $2.2B in 2026

Negative

• Net sales grew only 3% year-over-year
• Operating cash flow decreased 6% to $779M; free cash flow -6% to $694M

Key Figures

2026 Q2 Net Sales: $4,562M 2026 Q2 GAAP EPS: $1.10 2026 Q2 Adjusted EPS: $1.54 +5 more

8 metrics

2026 Q2 Net Sales $4,562M Compared to $4,432M in 2025 Q2 (3% growth)

2026 Q2 GAAP EPS $1.10 Up 28% from $0.86 in 2025 Q2

2026 Q2 Adjusted EPS $1.54 Up 4% from $1.48 in 2025 Q2

Pretax Earnings Margin 17.4% Up from 14.2% in 2025 Q2 (320 bps expansion)

Dividend per Share $0.555 Quarterly cash dividend payable June 10, 2026

FY 2026 Adj EPS Guide $6.45–$6.55 Full-year 2026 adjusted EPS outlook

FY 2026 Net Sales Growth ~4.5% Full-year 2026 net sales growth guidance

FY 2026 Cash Return ~$2.2B Planned ~$1B buybacks and ~$1.2B dividends in 2026

Market Reality Check

Price: $138.99 Vol: Volume 3,315,635 is 23% a...

normal vol

$138.99 Last Close

Volume Volume 3,315,635 is 23% above the 20-day average of 2,694,957. normal

Technical Price $135.46 is trading below the 200-day MA of $137.69, about 18% under the 52-week high.

Peers on Argus

While EMR was down 1.45%, key peers mostly saw modest declines: ITW -0.89%, PH -...

While EMR was down 1.45%, key peers mostly saw modest declines: ITW -0.89%, PH -1.43%, ETN -0.87%, ROK -1.53%, with CMI up 0.16%.

Common Catalyst Several peers (CMI, ROK, ETN) also reported earnings, suggesting broader sector newsflow rather than a single-stock catalyst.

Previous Earnings Reports

5 past events · Latest: Feb 03 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 03	Q1 2026 earnings	Positive	+3.4%	Q1 2026 sales and adjusted EPS grew, outlook reaffirmed with cash returns.
Nov 05	Q4/FY 2025 earnings	Positive	-3.8%	Q4 and FY 2025 sales, EPS and margins improved with higher cash returns.
Aug 06	Q3 2025 earnings	Positive	-4.7%	Q3 2025 showed sales growth, margin expansion and raised EPS guidance.
May 07	Q2 2025 earnings	Positive	+2.4%	Q2 2025 delivered higher sales, record margins and increased EPS guidance.
Feb 05	Q1 2025 earnings	Positive	-2.3%	Q1 2025 featured improved profitability, higher adjusted EPS and cash flow.

Pattern Detected

Earnings releases are generally positive fundamentally, but price reactions have skewed negative, with more divergences than alignments.

Recent Company History

Over the past five earnings cycles from Feb 2025 to Feb 2026, Emerson has consistently reported year-over-year growth in net sales and adjusted EPS, alongside expanding margins and robust cash flow. Guidance has typically called for mid-single-digit sales growth and mid-teens adjusted EPS expansion, with recurring plans to return about $2–3B annually via buybacks and dividends. Despite these constructive fundamentals, share reactions after earnings have been mixed, with several instances where strong results were followed by negative next-day performance.

Historical Comparison

-1.0% avg move · In the past five earnings releases, EMR’s average next-day move was about -1%. Today’s -1.45% reacti...

earnings

-1.0%

Average Historical Move earnings

In the past five earnings releases, EMR’s average next-day move was about -1%. Today’s -1.45% reaction sits within that historical earnings-response range.

Across recent quarters, Emerson has steadily grown sales, expanded margins, and repeatedly guided to mid-single-digit annual sales growth with rising adjusted EPS and sizable shareholder returns.

Market Pulse Summary

This announcement highlights year-over-year growth in Q2 net sales to $4,562M, GAAP EPS rising to $1...

Analysis

This announcement highlights year-over-year growth in Q2 net sales to $4,562M, GAAP EPS rising to $1.10, and adjusted EPS of $1.54, alongside guidance for 2026 adjusted EPS of $6.45–$6.55. Management reiterated plans to return about $2.2B to shareholders and maintain solid free cash flow. In context of prior quarters with similar margin expansion and cash generation, key items to watch include execution versus the ~4.5% net sales growth outlook and underlying orders momentum.

Key Terms

underlying sales, adjusted segment ebitA, free cash flow, operating cash flow, +3 more

7 terms

underlying sales financial

"Underlying Sales 2 | | 0.5 %"

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.

adjusted segment ebitA financial

"Adjusted Segment EBITA 3 | $1,240 | $1,258"

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 | $738 | $694 | (6) %"

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.

operating cash flow financial

"Operating Cash Flow | $825 | $779 | (6) %"

Operating cash flow is the amount of money a company earns from its main business activities, like selling products or services. It shows how well the company can generate cash to pay bills, invest in growth, or return money to shareholders. This figure helps investors understand if the company’s core operations are healthy and sustainable.

amortization of intangibles financial

"Amortization of intangibles | ~$0.34 | ~$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 | ~$0.18"

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.

AI-generated analysis. Not financial advice.

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 Orders1			5 %
Net Sales	$4,432	$4,562	3 %
Underlying Sales2			0.5 %
Pretax Earnings	$629	$793
Margin	14.2 %	17.4 %	320 bps
Adjusted Segment EBITA3	$1,240	$1,258
Margin	28.0 %	27.6 %	(40) bps
GAAP Earnings Per Share	$0.86	$1.10	28 %
Adjusted Earnings Per Share4	$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	41		84		50		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)		1
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	21		45		32		53
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	16		16
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)		26
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,				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)		87		(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	27		27		28		28
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,				Quarter Ended March 31,
	2025				2026
	Amortization of Intangibles1		Restructuring and Related Costs2		Amortization of Intangibles1		Restructuring and Related Costs2
Control Systems & Software	$                 128		$                     9		$                 101		$                     4
Test & Measurement	105		6		107		7
Software & Systems	$                 233		$                   15		$                 208		$                   11
Sensors	11		2		12		8
Final Control	28		3		27		25
Intelligent Devices	$                   39		$                     5		$                   39		$                   33
Safety & Productivity	$                     6		$                     2		$                     7		$                     3
Corporate	—		5		—		6
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		32		34
Final Control		56		58
Intelligent Devices		88		92
Safety & Productivity		18		19
Corporate		11		13
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					9	1	4
Adjusted stock compensation (non-GAAP)					$                  (50)		$                  (53)
					Quarter Ended March 31,
					2025		2026
Corporate and other (GAAP)					$                (238)		$                  (51)
Corporate restructuring and related costs					4		5
Acquisition / divestiture costs					160		7
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	41		84
Amortization of intangibles	278		254
Restructuring and related costs	27		53
Acquisition/divestiture fees and related costs	168		10
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 Share
As reported (GAAP)	$         793		$         175		$         618		$           —		$            618		$        1.10
Amortization of intangibles	254	1	59		195		—		195		0.35
Restructuring and related costs	53	2	11		42		—		42		0.07
Acquisition/divestiture fees and related costs	10		2		8		—		8		0.01
Discrete taxes	—		(6)		6		—		6		0.01
Adjusted (non-GAAP)	$      1,110		$         241		$         869		$           —		$            869		$        1.54
Interest expense, net	84
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	EBIT Margin	Amortization of 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	6	87	24.3 %
Software & Systems	$               214	14.6 %	$               233	$                  15	$               462	31.7 %
Sensors	266	26.6 %	11	2	279	27.9 %
Final Control	355	24.4 %	28	3	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	EBIT Margin	Amortization of  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	7	109	26.3 %
Software & Systems	$               219	14.6 %	$               208	$                  11	$               438	29.2 %
Sensors	276	27.0 %	12	8	296	28.9 %
Final Control	353	23.7 %	27	25	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		22	47
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.

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SOURCE Emerson

FAQ

What did Emerson (EMR) report for Q2 2026 net sales and EPS?

Emerson reported Q2 net sales of $4,562M and GAAP EPS of $1.10. According to the company, net sales rose 3% and GAAP EPS increased 28% versus the prior year quarter.

How did Emerson (EMR) perform on margins in Q2 2026?

Emerson delivered a pretax margin of 17.4% in Q2 2026, up 320 basis points. According to the company, margin improvement drove higher pretax earnings despite modest sales growth.

What is Emerson's updated full‑year 2026 adjusted EPS guidance (EMR)?

Emerson updated FY2026 Adjusted EPS guidance to $6.45–$6.55. According to the company, adjusted EPS excludes amortization, restructuring, acquisition/divestiture costs, and discrete taxes.

How much cash will Emerson (EMR) return to shareholders in 2026?

Emerson plans to return approximately $2.2B in 2026 via about $1B of share repurchases and $1.2B of dividends. According to the company, this reflects a pivot in capital allocation to shareholder returns.

When is Emerson's dividend payable and what is the amount (EMR)?

Emerson declared a quarterly cash dividend of $0.555 per share, payable June 10, 2026 to holders of record on May 15, 2026. According to the company, this is the declared payment date and amount.

Did Emerson (EMR) report any cash flow changes in Q2 2026?

Operating cash flow was $779M and free cash flow was $694M, each down about 6% year-over-year. According to the company, cash conversion was lower versus the prior year quarter.