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Emerson pension change adds $8M to pretax earnings

The retrospective accounting change lifts nine-month fiscal 2026 earnings by $0.01 per share and leaves cash flows and pension funding unchanged.

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Rhea-AI Filing Summary

Emerson Electric Co. (EMR) changed its accounting for actuarial gains and losses on its defined benefit pension and other postretirement benefit plans, effective for fiscal 2026. Under mark-to-market accounting, those gains and losses are recognized in earnings when they arise. Beginning in the fourth quarter of fiscal 2026, Emerson will record the annual adjustment based on the plans’ September 30 measurement date. The company expects a pretax gain of less than $5 million in that quarter based on current actuarial assumptions and estimated plan asset returns, and will exclude the adjustment from adjusted earnings per share.

The retrospective change increased earnings for the nine months ended June 30, 2026 by $8 million pretax, or $6 million after tax and $0.01 per share, reflecting reversal of amortized losses from accumulated other comprehensive income. Recast historical results show a $29 million reduction in fiscal 2025 pretax earnings and an $11 million increase in fiscal 2024 pretax earnings. Emerson states the change has no impact on total cash flows, plan funded status, funding requirements or benefits payable. The recast figures do not restate previously issued financial statements.

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Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Expected fourth-quarter pretax gain Less than $5 million Fiscal 2026 estimate based on current actuarial assumptions and estimated plan asset returns
Pretax earnings impact $8 million Nine months ended June 30, 2026; increase from the accounting change
After-tax earnings impact $6 million Nine months ended June 30, 2026; increase from the accounting change
Diluted earnings per share impact $0.01 per share Nine months ended June 30, 2026; increase from the accounting change
Pretax earnings impact -$29 million Fiscal 2025 earnings from continuing operations before income taxes
Pretax earnings impact $11 million Fiscal 2024 earnings from continuing operations before income taxes
Diluted earnings per share impact -$0.04 per share Fiscal 2025 diluted earnings per common share
mark-to-market accounting financial
"commonly referred to as mark-to-market accounting"
Mark-to-market accounting records assets and liabilities at their current market value instead of the price originally paid, so balance sheets and profits are updated to reflect what things would sell for right now. For investors this matters because it makes a company’s reported results move with market prices—providing more transparent, timely signals about financial health but also introducing volatility that can amplify swings in earnings, capital and investor perceptions.
actuarial gains and losses financial
"actuarial gains and losses will be recognized in earnings"
accumulated other comprehensive income financial
"in accumulated other comprehensive income"
Accumulated other comprehensive income is a running total on a company’s balance sheet that records certain gains and losses not included in reported profit, such as unrealized gains or losses on some investments, currency translation differences, and pension plan adjustments. Think of it like items in a shopping cart you haven’t paid for yet: it doesn’t affect current profit but changes the company’s overall equity and signals potential future swings in value that investors should watch.
adjusted EBITA financial
"results on an adjusted EBITA basis"
Adjusted EBITA is a measure of a company’s operating profit before interest, taxes and amortization, further modified to remove one-time or unusual items so it reflects ongoing business earnings. It matters to investors because it aims to show the company’s core cash-making ability — like listening to an engine without road noise — making comparisons across periods or peers easier, though companies may differ in what they exclude.
Earnings before income taxes $2,492 million +$8 million from the accounting change
Net earnings common stockholders $1,947 million +$6 million from the accounting change
Diluted earnings per common share $3.46 per share +$0.01 per share from the accounting change

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What changed in Emerson EMR pension accounting?
Emerson adopted mark-to-market accounting for actuarial gains and losses on its defined benefit pension and other postretirement benefit plans, effective for fiscal 2026. It recognizes those amounts in earnings when they arise, with an annual fourth-quarter adjustment based on the plans’ September 30 measurement date.

How much did the accounting change affect EMR’s earnings for the nine months ended June 30, 2026?
The change increased earnings by $8 million pretax, or $6 million after tax and $0.01 per share. The impact reflected reversal of amortized losses from accumulated other comprehensive income.

Does EMR’s pension accounting change affect cash flows?
Emerson states the accounting change has no impact on total cash flows, plan funded status, funding requirements or benefits payable to plan participants.

Why does Emerson exclude the mark-to-market adjustment from adjusted EPS?
Emerson says the adjustment is subject to significant variability from market conditions and actuarial assumptions and is not considered indicative of the company’s underlying operating performance.

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Available on EDGAR Accepted by SEC EDGAR
0000032604false00000326042026-10-132026-10-130000032604exch:XNYSemr:CommonStockof0.50parvaluepershareMember2026-10-132026-10-130000032604exch:XNYSemr:A2.000Notesdue2029Member2026-10-132026-10-130000032604exch:XNYSemr:A3.000NotesDue2031Member2026-10-132026-10-130000032604exch:XNYSemr:A3.500NotesDue2037Member2026-10-132026-10-13

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event
reported): October 13, 2026
Emerson Electric Co.
-------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Missouri1-27843-0259330
---------------------------------
(State or Other Jurisdiction of Incorporation)		-------------------
(Commission		---------------------------
(I.R.S. Employer Identification Number)
File Number)
8027 Forsyth Blvd.
St. Louis,Missouri63105
------------------------------------------------
(Address of Principal Executive Offices)		------------------
(Zip Code)
Registrant’s telephone number, including area code:
(314) 553-2000
------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s)Name of each exchange on which registered
Common Stock of $0.50 par value per share EMRNew York Stock Exchange
NYSE Texas
2.000% Notes due 2029EMR 29New York Stock Exchange
3.000% Notes due 2031EMR 31ANew York Stock Exchange
3.500% Notes due 2037EMR 37New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐    


Item 2.02 Results of Operations and Financial Condition
(Dollars in millions, except per share amounts)
 
On October 13, 2026, Emerson Electric Co. ("Emerson" or the "Company") announced that, effective for the fiscal year ended September 30, 2026, it has elected to change its method of accounting for actuarial gains and losses associated with its defined benefit pension and other postretirement benefit plans. Under the new method, commonly referred to as mark-to-market accounting, actuarial gains and losses will be recognized in earnings in the period in which they arise. Historically, Emerson recognized actuarial gains and losses in accumulated other comprehensive income and amortized a portion of those amounts into net periodic benefit cost in subsequent periods.

Beginning in the fourth quarter of fiscal 2026, the Company will recognize actuarial gains and losses annually in the fourth quarter based on the plans' September 30 annual measurement date. The annual mark-to-market adjustment will principally reflect changes in discount rates, returns on plan assets and other actuarial assumptions.

Emerson believes the new method is preferable under U.S. generally accepted accounting principles ("U.S. GAAP") because it improves the transparency of the Company's results of operations by recognizing the effects of current economic conditions and plan experience in the period in which they arise, rather than amortizing those effects into earnings over future periods. The new method also better aligns the measurement of pension and other postretirement benefit expense with fair value principles.

The Company expects to record a pretax gain of less than $5 for the mark-to-market adjustment in the fourth quarter of fiscal 2026 based on its current actuarial assumptions and estimated plan asset returns; however, actual results could differ from the Company's preliminary estimates. The Company will exclude the annual mark-to-market adjustment from adjusted earnings per share because the adjustment is subject to significant variability resulting from changes in market conditions and actuarial assumptions, and is not considered indicative of the Company’s underlying operating performance. The impact of adopting mark-to-market accounting also increased earnings for the nine months ended June 30, 2026 by $8 ($6 after-tax, $0.01 per share) due to reversal of amortized losses out of accumulated other comprehensive income. The expected mark-to-market gain and benefit from the reversal of amortized losses were not reflected in the Company's previously announced fiscal 2026 outlook. This Current Report on Form 8-K is not otherwise intended to reaffirm or update the Company's previously published outlook.

The annual mark-to-market adjustment will be reported in the Company's consolidated results but will not be allocated to its reportable segments. Further, it will have no impact on total cash flows, the funded status of its plans, the Company's funding requirements or benefits payable to plan participants.

This accounting change is required to be applied retrospectively to all periods presented. To facilitate investors' understanding of the impact of this change, the Company is including herein as Exhibit 99.1 recast results of operations for the years ended September 30, 2024 and 2025 and results for the nine months ended June 30, 2026, as well as quarterly results for fiscal year 2025 and the first three quarters of fiscal year 2026. The information in Exhibit 99.1 does not represent a restatement of previously issued financial statements and should be read in conjunction with the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. The information contained in this Form 8-K is being provided voluntarily and shall not be deemed “filed” for purposes of, or subject to liability under, Section 18 of the Securities Exchange Act of 1934, and shall not be deemed incorporated by reference into any Company filing with the Securities and Exchange Commission.
 
Non-GAAP Financial Measures
 
The supplemental unaudited historical results contain non-GAAP financial measures as such term is defined in Regulation G under the rules of the Securities and Exchange Commission. While the Company believes these non-GAAP financial measures are useful in evaluating the Company, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from similarly titled measures presented by other companies. The reasons management believes that these non-GAAP financial measures provide useful information are set forth in the Company’s most recent Form 10-K filed with the Securities and Exchange Commission.



Forward-Looking and Cautionary Statements

Statements in this Current Report on Form 8-K 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 Current Report on Form 8-K speak only as of the date of this Current Report. 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.

Item 9.01 Financial Statements and Exhibits

The Company is including herein supplemental unaudited recast historical information for the years ended September 30, 2024 and 2025 and the nine months ended June 30, 2026, as well as quarterly results for fiscal year 2025 and the first three quarters of fiscal year 2026. This information is attached as Exhibit 99.1 and incorporated herein by reference.
 

(d) Exhibits.
 
Exhibit Number Description of Exhibits
99.1
Supplemental unaudited recast historical financial information for the years ended September 30, 2024 and 2025 and the nine months ended June 30, 2026, as well as quarterly results for fiscal 2025 and the first three quarters of fiscal 2026.
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
 


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
EMERSON ELECTRIC CO.
(Registrant)
Date:October 13, 2026By:/s/ John A. Sperino
John A. Sperino
Vice President and
Assistant Secretary

  

Exhibit 99.1
Consolidated Statements of Earnings
EMERSON ELECTRIC CO. & SUBSIDIARIES
(Dollars in millions, except per share amounts; unaudited)
Quarterly amounts may not sum to the annual amounts due to rounding. Earnings per share are computed independently each period; as a result, the quarterly amounts may not sum to the calculated annual amounts.
Fiscal Year 2026
First quarterSecond quarter
Previously ReportedImpact of ChangeAs RevisedPreviously ReportedImpact of ChangeAs Revised
Net sales$4,346 4,346 4,562 4,562 
Cost of sales2,035 2,035 2,140 2,140 
Selling, general and administrative expenses1,242 1,242 1,316 1,316 
Other deductions, net204 (3)201 229 (2)227 
Interest expense, net90 90 84 84 
Earnings before income taxes775 3 778 793 2 795 
Income taxes169 1 170 175 — 175 
Net earnings606 2 608 618 2 620 
Less: Noncontrolling interests in subsidiaries1 1 — — 
Net earnings common stockholders$605 2 607 618 2 620 
Diluted earnings per share common stockholders:
Earnings from continuing operations$1.07 0.01 1.08 1.10 — 1.10 
Discontinued operations— — — — 
Diluted earnings per common share$1.07 0.01 1.08 1.10 — 1.10 
Adjusted earnings per common share$1.46 — 1.46 1.54 0.01 1.55 

Fiscal Year 2026
Third quarterNine months ended June 30
Previously ReportedImpact of ChangeAs RevisedPreviously ReportedImpact of ChangeAs Revised
Net sales$4,873 4,873 13,781 13,781 
Cost of sales2,218 2,218 6,393 6,393 
Selling, general and administrative expenses1,343 1,343 3,902 3,902 
Other deductions, net311 (2)309 744 (8)736 
Interest expense, net85 85 258 258 
Earnings before income taxes916 2 918 2,484 8 2,492 
Income taxes198 — 198 542 2 544 
Net earnings718 2 720 1,942 6 1,948 
Less: Noncontrolling interests in subsidiaries— — 1 1 
Net earnings common stockholders$718 2 720 1,941 6 1,947 
Diluted earnings per share common stockholders:
Earnings from continuing operations$1.28 — 1.28 3.45 0.01 3.46 
Discontinued operations— — — — 
Diluted earnings per common share$1.28 — 1.28 3.45 0.01 3.46 
Adjusted earnings per common share$1.71 — 1.71 4.71 0.01 4.72 








(Dollars in millions, except per share amounts; unaudited)
Fiscal Year 2025
First quarterSecond quarter
Previously ReportedImpact of ChangeAs RevisedPreviously ReportedImpact of ChangeAs Revised
Net sales$4,175 4,175 4,432 4,432 
Cost of sales1,940 1,940 2,061 2,061 
Selling, general and administrative expenses1,224 1,224 1,283 1,283 
Other deductions, net228 (2)226 418 (2)416 
Interest expense, net8 8 41 41 
Earnings from continuing operations before income taxes775 2 777 629 2 631 
Income taxes182 1 183 199 1 200 
Earnings from continuing operations593 1 594 430 1 431 
Discontinued operations, net of tax— — — — 
Net earnings593 1 594 430 1 431 
Less: Noncontrolling interests in subsidiaries8 8 (55)(55)
Net earnings common stockholders$585 1 586 485 1 486 
Diluted earnings per share common stockholders:
Earnings from continuing operations$1.02 0.01 1.03 0.86 — 0.86 
Discontinued operations— — — — 
Diluted earnings per common share$1.02 0.01 1.03 0.86 — 0.86 
Adjusted earnings per common share$1.38 0.01 1.39 1.48 — 1.48 

Fiscal Year 2025
Third quarterFourth quarter
Previously ReportedImpact of ChangeAs RevisedPreviously ReportedImpact of ChangeAs Revised
Net sales$4,553 4,553 4,855 4,855 
Cost of sales2,160 2,160 2,335 2,335 
Selling, general and administrative expenses1,266 1,266 1,330 1,330 
Other deductions, net298 (3)295 302 36 338 
Interest expense, net95 95 92 92 
Earnings from continuing operations before income taxes734 3 737 796 (36)760 
Income taxes154 1 155 160 (8)152 
Earnings from continuing operations580 2 582 636 (28)608 
Discontinued operations, net of tax6 6 1 1 
Net earnings586 2 588 637 (28)609 
Less: Noncontrolling interests in subsidiaries— — — — 
Net earnings common stockholders$586 2 588 637 (28)609 
Diluted earnings per share common stockholders:
Earnings from continuing operations$1.03 — 1.03 1.12 (0.05)1.07 
Discontinued operations0.01 0.01 — — 
Diluted earnings per common share$1.04 — 1.04 1.12 (0.05)1.07 
Adjusted earnings per common share$1.52 — 1.52 1.62 — 1.62 








(Dollars in millions, except per share amounts; unaudited)
Fiscal 2025Fiscal 2024
Previously ReportedImpact of ChangeAs RevisedPreviously ReportedImpact of ChangeAs Revised
Net sales$18,016 18,016 17,492 17,492 
Cost of sales8,497 8,497 8,607 8,607 
Selling, general and administrative expenses5,103 5,103 5,142 5,142 
Gain on subordinated interest— — (79)(79)
Loss on Copeland note receivable— — 279 279 
Other deductions, net1,245 29 1,274 1,434 (11)1,423 
Interest expense, net237 237 175 175 
Interest income from related party— — (86)(86)
Earnings from continuing operations before income taxes2,934 (29)2,905 2,020 11 2,031 
Income taxes696 (6)690 415 5 420 
Earnings from continuing operations2,238 (23)2,215 1,605 6 1,611 
Discontinued operations, net of tax8 8 350 350 
Net earnings2,246 (23)2,223 1,955 6 1,961 
Less: Noncontrolling interests in subsidiaries(47)(47)(13)(13)
Net earnings common stockholders$2,293 (23)2,270 1,968 6 1,974 
Diluted earnings per share common stockholders:
Earnings from continuing operations$4.03 (0.04)3.99 2.82 0.01 2.83 
Discontinued operations0.01 0.01 0.61 0.61 
Diluted earnings per common share$4.04 (0.04)4.00 3.43 0.01 3.44 
Adjusted earnings per common share$6.00 0.01 6.01 5.49 (0.14)5.35 









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 results of operations. The results have been recast to reflect the Company's adoption of mark-to-market accounting for its defined benefit pension and other postretirement benefit plans.

(Dollars in millions, except per share amounts; unaudited)
Fiscal Year 2026
First QuarterSecond QuarterThird QuarterNine Months ended June 30
Pretax earnings (previously reported)$775 793 916 2,484 
Impact of mark-to-market change3 2 2 8 
Pretax earnings778 795 918 2,492 
Percent of sales17.9 %17.4 %18.8 %18.1 %
Interest expense, net90 84 85 258 
Amortization of intangibles254 254 253 761 
Restructuring and related costs11 53 99 164 
Acquisition/divestiture fees and related costs11 10 32 54 
IEEPA tariff refunds— — (82)(82)
Adjusted EBITA$1,144 1,196 1,305 3,647 
Percent of sales26.3 %26.2 %26.8 %26.5 %

Fiscal Year 2025Fiscal Year 2024
First QuarterSecond QuarterThird QuarterFourth QuarterYear ended Sept 30Year ended Sept 30
Earnings from continuing operations before income taxes (previously reported)$775 629 734 796 2,934 2,020 
Impact of mark-to-market change2 2 3 (36)(29)11 
Earnings from continuing operations before income taxes777 631 737 760 2,905 2,031 
Percent of sales18.6 %14.2 %16.2 %15.6 %16.1 %11.6 %
Interest expense, net8 41 95 92 237 175 
Interest income from related party— — — — — (86)
Amortization of intangibles278 278 269 257 1,083 1,274 
Restructuring and related costs13 27 41 81 162 244 
Pension mark-to-market adjustment— — — 34 34 (111)
Acquisition/divestiture fees and related costs22 168 44 45 277 220 
Amortization of acquisition-related inventory step-up— — — — — 231 
Loss on Copeland note receivable— — — — — 279 
Loss on divestiture of businesses— — — — — 48 
Gain on subordinated interest— — — — — (79)
Adjusted EBITA from continuing operations$1,098 1,145 1,186 1,269 4,698 4,226 
Percent of sales26.3 %25.8 %26.1 %26.1 %26.1 %24.2 %



















(Dollars in millions, except per share amounts; unaudited)

Fiscal Year 2026
First QuarterSecond QuarterThird QuarterNine Months ended June 30
Diluted earnings per share (previously reported)$1.07 1.10 1.28 3.45 
Impact of mark-to-market change0.01 — — 0.01 
Diluted earnings per share1.08 1.10 1.28 3.46 
Amortization of intangibles0.35 0.35 0.35 1.04 
Restructuring and related costs0.02 0.07 0.13 0.22 
Acquisition/divestiture fees and related costs— 0.02 0.05 0.08 
Discrete taxes0.01 0.01 0.01 0.03 
IEEPA tariff refunds— — (0.11)(0.11)
Adjusted earnings per share$1.46 1.55 1.71 4.72 
        
Fiscal Year 2025Fiscal Year 2024
First QuarterSecond QuarterThird QuarterFourth QuarterYear ended Sept 30Year ended Sept 30
Diluted earnings from continuing operations per share (previously reported)$1.02 $0.86 1.03 1.12 4.03 2.82 
Impact of mark-to-market change0.01 — — (0.05)(0.04)0.01 
Diluted earnings from continuing operations per share1.03 0.86 1.03 1.07 3.99 2.83 
Amortization of intangibles0.31 0.32 0.37 0.35 1.35 1.43 
Restructuring and related costs0.02 0.04 0.06 0.11 0.23 0.33 
Pension mark-to-market adjustment— — — 0.05 0.05 (0.15)
Acquisition/divestiture fees and related costs0.03 0.17 0.06 0.06 0.33 0.26 
Discrete taxes— 0.09 — (0.02)0.06 (0.10)
Amortization of acquisition-related inventory step-up— — — — — 0.38 
Loss on Copeland note receivable— — — — — 0.38 
Loss on divestiture of businesses— — — — — 0.09 
Gain on subordinated interest— — — — — (0.10)
Adjusted earnings from continuing operations per share$1.39 1.48 1.52 1.62 6.01 5.35 








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