Emerson Electric Q4 EPS rises 24% to $1.33
Emerson's initial fiscal 2027 outlook includes approximately $7.25 in adjusted EPS and $3.8 billion to $3.9 billion in free cash flow.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Emerson Electric Co. reported fourth-quarter net sales of $5.201 billion, up 7% year over year, and fiscal 2026 sales of $18.982 billion, up 5%. GAAP earnings per share were $1.33 for the quarter, up 24%, and $4.79 for the year, up 20%. Fiscal 2026 operating cash flow was $3.978 billion, up 8%; results were presented on a continuing-operations basis.
Adjusted earnings per share, a non-GAAP measure, was $1.86 in Q4, up 15%, and $6.59 for fiscal 2026, up 10%. Emerson declared a 7% quarterly cash dividend increase to $0.595 per share, payable December 10, 2026, to stockholders of record November 13, 2026.
Initial fiscal 2027 guidance includes approximately 5% net sales growth, EPS of approximately $5.70, and adjusted EPS of approximately $7.25. The outlook calls for operating cash flow of $4.3 billion to $4.4 billion and free cash flow of $3.8 billion to $3.9 billion; it assumes returning approximately $3.8 billion through approximately $2.5 billion of share repurchases and approximately $1.3 billion of dividends.
4 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointFiscal 2026 net sales increased 5% to $18.982 billion.
- Moderate pointFiscal 2026 GAAP EPS increased 20% to $4.79 per share.
- Moderate pointFiscal 2026 operating cash flow increased 8% to $3.978 billion.
- Minor pointQuarterly dividend increased 7% to $0.595 per share.
Negative
- None.
8-K Event Classification
2 items: 2.02, 9.01
2 items
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.
Key Figures
Net sales: $5.201 billion
Net sales: $18.982 billion
GAAP earnings per share: $1.33
+5 more
8 metrics
Net sales
$5.201 billion
Fourth quarter ended September 30, 2026; up 7% year over year
Net sales
$18.982 billion
Fiscal year ended September 30, 2026; up 5% year over year
GAAP earnings per share
$1.33
Fourth quarter 2026; up 24% year over year
GAAP earnings per share
$4.79
Fiscal 2026; up 20% year over year
Adjusted earnings per share
$6.59
Fiscal 2026; non-GAAP measure, up 10% year over year
Operating cash flow
$3.978 billion
Fiscal 2026; up 8% year over year
Quarterly cash dividend
$0.595 per share
Declared 7% increase; payable December 10, 2026
Adjusted earnings per share guidance
Approximately $7.25
Fiscal 2027 outlook
Key Terms
Underlying orders, Adjusted Segment EBITA, Adjusted earnings per share, Free cash flow
4 terms
Underlying orders financial
"trailing three-month average orders growth versus the prior year"
Adjusted Segment EBITA financial
"segment earnings excluding restructuring and related costs and intangibles amortization expense"
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 (non-GAAP)"
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.
Earnings Snapshot
Net sales, fourth quarter: $5.201 billion · Guidance included
Fourth quarter and fiscal year 2026 ended September 30, 2026
Net sales, fourth quarter
$5.201 billion
7%
GAAP earnings per share, fourth quarter
$1.33
24%
Net sales, fiscal year
$18.982 billion
5%
GAAP earnings per share, fiscal year
$4.79
20%
Operating cash flow, fiscal year
$3.978 billion
8%
Guidance
Initial fiscal 2027 guidance: net sales growth ~5%; EPS ~$5.70; adjusted EPS ~$7.25; operating cash flow $4.3 billion to $4.4 billion; free cash flow $3.8 billion to $3.9 billion. The outlook assumes returning ~$3.8 billion through ~$2.5 billion of share repurchases and ~$1.3 billion of dividends; fiscal 2027 figures are approximate except where a range is given.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were EMR's Q4 2026 sales and earnings?
Emerson reported fourth-quarter net sales of $5.201 billion, up 7% from $4.855 billion, and GAAP earnings per share of $1.33, up 24% from $1.07. Adjusted earnings per share, a non-GAAP measure, was $1.86, up 15% from $1.62.
What is EMR's fiscal 2027 outlook?
Emerson's initial fiscal 2027 outlook includes approximately 5% net sales growth, EPS of approximately $5.70, and adjusted EPS of approximately $7.25. It projects operating cash flow of $4.3 billion to $4.4 billion and free cash flow of $3.8 billion to $3.9 billion.
When will EMR pay its increased dividend?
Emerson declared a 7% increase to $0.595 per share for its quarterly cash dividend, payable December 10, 2026, to stockholders of record November 13, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): November 4, 2026
-------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
| --------------------------------- (State or Other Jurisdiction of Incorporation) | ------------------- (Commission | --------------------------- (I.R.S. Employer Identification Number) | ||||||
| File Number) | ||||||||
| ------------------------------------------------ (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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| | ||||||||
| NYSE Texas | ||||||||
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).
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
Quarterly Results Press Release
On Wednesday, November 4, 2026, a press release was issued regarding the fourth quarter and full year results of Emerson Electric Co. (the “Company”). A copy of this press release is furnished with this Current Report on Form 8-K as Exhibit 99.1.
References to underlying orders in the press release refer to the Company's trailing three-month average orders growth versus the prior year, excluding currency, and significant acquisitions and divestitures.
Non-GAAP Financial Measures
The press release contains 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 and in the press release furnished with this Form 8-K.
Forward-Looking and Cautionary Statements
Statements in the 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 the press release speak only as of the date of the 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.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Description of Exhibits | |||||||
| 99.1 | Emerson's November 4, 2026 press release announcing fourth quarter and full year results. | |||||||
| 104 | Cover 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: | November 4, 2026 | By: | /s/ John A. Sperino | ||||||||
John A. Sperino Vice President and Assistant Secretary | |||||||||||
Emerson Reports Fourth Quarter and Full Year 2026 Results;
Provides Initial 2027 Outlook
Provides Initial 2027 Outlook
ST. LOUIS (November 4, 2026) - Emerson (NYSE: EMR) today reported results1 for its fourth quarter and fiscal year ended September 30, 2026. Emerson also declared a 7% quarterly cash dividend increase to $0.595 per share of common stock payable December 10, 2026 to stockholders of record November 13, 2026.
| (dollars in millions, except per share) | 2025 Q4 | 2026 Q4 | Change | 2025 | 2026 | Change | ||||||||||||||||||||
Underlying Orders2 | 14% | 9% | ||||||||||||||||||||||||
| Net Sales | $4,855 | $5,201 | 7% | $18,016 | $18,982 | 5% | ||||||||||||||||||||
Underlying Sales3 | 7% | 4% | ||||||||||||||||||||||||
| Pretax Earnings | $760 | $997 | $2,905 | $3,489 | ||||||||||||||||||||||
| Margin | 15.6% | 19.2% | 360 bps | 16.1% | 18.4% | 230 bps | ||||||||||||||||||||
Adjusted Segment EBITA4 | $1,333 | $1,511 | $4,975 | $5,360 | ||||||||||||||||||||||
| Margin | 27.5% | 29.1% | 160 bps | 27.6% | 28.2% | 60 bps | ||||||||||||||||||||
| GAAP Earnings Per Share | $1.07 | $1.33 | 24% | $3.99 | $4.79 | 20% | ||||||||||||||||||||
Adjusted Earnings Per Share5 | $1.62 | $1.86 | 15% | $6.01 | $6.59 | 10% | ||||||||||||||||||||
| Operating Cash Flow | $1,011 | $1,075 | 6% | $3,676 | $3,978 | 8% | ||||||||||||||||||||
| Free Cash Flow | $843 | $916 | 9% | $3,245 | $3,535 | 9% | ||||||||||||||||||||
Management Commentary
"Emerson capped a strong 2026 with fourth quarter sales and profitability exceeding expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Underlying orders were up 14%, supported by exceptional long-cycle project activity in our growth verticals. Demand was broad-based, with substantial growth across all business groups and regions."
Karsanbhai continued, "Emerson has a resilient portfolio with an unparalleled software-defined technology stack aligned with long-term secular trends. We have confidence in our 2027 plans given our robust backlog and favorable demand trends in our growth verticals."
2027 Outlook
The following tables summarize the fiscal year 2027 guidance framework, which assumes returning ~$3.8B through ~$2.5B of share repurchases and ~$1.3B of dividends.
| Guidance figures are approximate. | 2027 Q1 | 2027 | ||||||
| Net Sales Growth | ~5% | ~5% | ||||||
| Underlying Sales Growth | ~5% | ~5% | ||||||
| Earnings Per Share | $1.19 - $1.23 | ~$5.70 | ||||||
| Amortization of intangibles | ~$0.35 | ~$1.41 | ||||||
| Restructuring and related costs | ~$0.04 | ~$0.14 | ||||||
| Adjusted Earnings Per Share | $1.58 - $1.62 | ~$7.25 | ||||||
| Operating Cash Flow | $4.3B - $4.4B | |||||||
| Free Cash Flow | $3.8B - $3.9B | |||||||
| Share Repurchase | ~$1.5B | ~$2.5B | ||||||
1 Results are presented on a continuing operations basis.
2 Underlying orders do not include AspenTech.
3 Underlying sales exclude the impact of currency translation, and significant acquisitions and divestitures.
4 Adjusted segment EBITA represents segment earnings excluding restructuring and related costs and intangibles amortization expense.
5 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, first year purchase accounting related items and transaction-related costs, the mark-to-market adjustment on pension and other postretirement plans, discrete taxes, and certain gains, losses or impairments.
Page 2
Conference Call
Today, beginning at 7:30 a.m. Central Time / 8:30 a.m. Eastern Time, Emerson management will discuss the fourth quarter and fiscal year 2026 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.
Contacts
| Investors: | Media: | ||||
| Carl Schumacher | Joseph Sala / Greg Klassen / Connor Murphy | ||||
| (314) 553-2197 | Joele Frank, Wilkinson Brimmer Katcher | ||||
| (212) 355-4449 | |||||
(tables attached)
Page 3
| Table 1 | |||||||||||||||||||||||
| EMERSON AND SUBSIDIARIES | |||||||||||||||||||||||
| CONSOLIDATED OPERATING RESULTS | |||||||||||||||||||||||
| (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) | |||||||||||||||||||||||
| Quarter Ended September 30, | Year Ended September 30, | ||||||||||||||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||||||||||||||
| Net sales | $ | 4,855 | $ | 5,201 | $ | 18,016 | $ | 18,982 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of sales | 2,335 | 2,461 | 8,497 | 8,854 | |||||||||||||||||||
| SG&A expenses | 1,330 | 1,393 | 5,103 | 5,296 | |||||||||||||||||||
| Other deductions, net | 338 | 274 | 1,274 | 1,009 | |||||||||||||||||||
| Interest expense, net | 92 | 76 | 237 | 334 | |||||||||||||||||||
| Earnings from continuing operations before income taxes | 760 | 997 | 2,905 | 3,489 | |||||||||||||||||||
| Income taxes | 152 | 253 | 690 | 796 | |||||||||||||||||||
| Earnings from continuing operations | 608 | 744 | 2,215 | 2,693 | |||||||||||||||||||
| Discontinued operations, net of tax | 1 | — | 8 | — | |||||||||||||||||||
| Net earnings | 609 | 744 | 2,223 | 2,693 | |||||||||||||||||||
| Less: Noncontrolling interests in subsidiaries | — | — | (47) | 2 | |||||||||||||||||||
| Net earnings common stockholders | $ | 609 | $ | 744 | $ | 2,270 | $ | 2,691 | |||||||||||||||
| Earnings common stockholders | |||||||||||||||||||||||
| Earnings from continuing operations | $ | 608 | $ | 744 | $ | 2,262 | $ | 2,691 | |||||||||||||||
| Discontinued operations | 1 | — | 8 | — | |||||||||||||||||||
| Net earnings common stockholders | $ | 609 | $ | 744 | $ | 2,270 | $ | 2,691 | |||||||||||||||
| Diluted avg. shares outstanding | 565.5 | 559.7 | 566.7 | 562.0 | |||||||||||||||||||
| Diluted earnings per share common stockholders | |||||||||||||||||||||||
| Earnings from continuing operations | $ | 1.07 | $ | 1.33 | $ | 3.99 | $ | 4.79 | |||||||||||||||
| Discontinued operations | 0.01 | — | 0.01 | — | |||||||||||||||||||
| Diluted earnings per common share | $ | 1.08 | $ | 1.33 | $ | 4.00 | $ | 4.79 | |||||||||||||||
| Quarter Ended September 30, | Year Ended September 30, | ||||||||||||||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||||||||||||||
| Other deductions, net | |||||||||||||||||||||||
| Amortization of intangibles | $ | 208 | $ | 203 | $ | 884 | $ | 816 | |||||||||||||||
| Restructuring costs | 66 | 46 | 136 | 187 | |||||||||||||||||||
| Other | 64 | 25 | 254 | 6 | |||||||||||||||||||
| Total | $ | 338 | $ | 274 | $ | 1,274 | $ | 1,009 | |||||||||||||||
Page 4
| Table 2 | |||||||||||
| EMERSON AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (DOLLARS IN MILLIONS, UNAUDITED) | |||||||||||
| Year Ended Sept 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| Assets | |||||||||||
| Cash and equivalents | $ | 1,544 | $ | 1,806 | |||||||
| Receivables, net | 3,101 | 3,317 | |||||||||
| Inventories | 2,213 | 2,432 | |||||||||
| Other current assets | 1,725 | 1,962 | |||||||||
| Total current assets | 8,583 | 9,517 | |||||||||
| Property, plant & equipment, net | 2,871 | 2,859 | |||||||||
| Goodwill | 18,193 | 18,104 | |||||||||
| Other intangible assets | 9,458 | 8,442 | |||||||||
| Other | 2,859 | 2,892 | |||||||||
| Total assets | $ | 41,964 | $ | 41,814 | |||||||
| Liabilities and equity | |||||||||||
| Short-term borrowings and current | |||||||||||
| maturities of long-term debt | $ | 4,797 | $ | 4,667 | |||||||
| Accounts payable | 1,384 | 1,698 | |||||||||
| Accrued expenses | 3,616 | 3,753 | |||||||||
| Total current liabilities | 9,797 | 10,118 | |||||||||
| Long-term debt | 8,319 | 7,508 | |||||||||
| Other liabilities | 3,550 | 3,432 | |||||||||
| Equity | |||||||||||
| Common stockholders' equity | 20,282 | 20,740 | |||||||||
| Noncontrolling interests in subsidiaries | 16 | 16 | |||||||||
| Total equity | 20,298 | 20,756 | |||||||||
| Total liabilities and equity | $ | 41,964 | $ | 41,814 | |||||||
Page 5
| Table 3 | |||||||||||||||||
| EMERSON AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
| (DOLLARS IN MILLIONS, UNAUDITED) | |||||||||||||||||
| Year Ended Sept 30, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Operating activities | |||||||||||||||||
| Net earnings | $ | 2,223 | $ | 2,693 | |||||||||||||
| Earnings from discontinued operations, net of tax | (8) | — | |||||||||||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 1,518 | 1,478 | |||||||||||||||
| Stock compensation | 263 | 237 | |||||||||||||||
| Pension expense (income) | 9 | (25) | |||||||||||||||
| Pension funding | (46) | (38) | |||||||||||||||
| Changes in operating working capital | (9) | (338) | |||||||||||||||
| Other, net | (274) | (29) | |||||||||||||||
| Cash from continuing operations | 3,676 | 3,978 | |||||||||||||||
| Cash from discontinued operations | (578) | — | |||||||||||||||
| Cash provided by operating activities | 3,098 | 3,978 | |||||||||||||||
| Investing activities | |||||||||||||||||
| Capital expenditures | (431) | (443) | |||||||||||||||
| Purchases of businesses, net of cash and equivalents acquired | (37) | (6) | |||||||||||||||
| Other, net | (125) | (6) | |||||||||||||||
| Cash used in investing activities | (593) | (455) | |||||||||||||||
| Financing activities | |||||||||||||||||
| Net increase in short-term borrowings | 1,110 | 2,051 | |||||||||||||||
| Proceeds from short-term borrowings greater than three months | 8,008 | 7,058 | |||||||||||||||
| Payments of short-term borrowings greater than three months | (4,918) | (9,388) | |||||||||||||||
| Proceeds from long-term debt | 1,544 | — | |||||||||||||||
| Payments of long-term debt | (503) | (588) | |||||||||||||||
| Dividends paid | (1,192) | (1,244) | |||||||||||||||
| Purchases of common stock | (1,167) | (1,000) | |||||||||||||||
| Purchase of noncontrolling interest | (7,244) | — | |||||||||||||||
| Repurchase of AspenTech share awards | (76) | — | |||||||||||||||
| Other, net | (72) | (111) | |||||||||||||||
| Cash used in financing activities | (4,510) | (3,222) | |||||||||||||||
| Effect of exchange rate changes on cash and equivalents | (39) | (39) | |||||||||||||||
| Increase (Decrease) in cash and equivalents | (2,044) | 262 | |||||||||||||||
| Beginning cash and equivalents | 3,588 | 1,544 | |||||||||||||||
| Ending cash and equivalents | $ | 1,544 | $ | 1,806 | |||||||||||||
Page 6
| Table 4 | |||||||||||
| EMERSON AND SUBSIDIARIES | |||||||||||
| SEGMENT SALES AND EARNINGS | |||||||||||
| (AMOUNTS 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 Sept 30, | ||||||||||||||||||||||||||
| 2025 | 2026 | Reported | Underlying | |||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||
| Control Systems & Software | 1,099 | $ | 1,247 | 14 | % | 14 | % | |||||||||||||||||||
| Test & Measurement | 407 | 465 | 14 | % | 15 | % | ||||||||||||||||||||
| Software & Systems | $ | 1,506 | $ | 1,712 | 14 | % | 14 | % | ||||||||||||||||||
| Sensors | 1,149 | 1,191 | 4 | % | 3 | % | ||||||||||||||||||||
| Final Control | 1,637 | 1,725 | 5 | % | 5 | % | ||||||||||||||||||||
| Intelligent Devices | $ | 2,786 | $ | 2,916 | 5 | % | 4 | % | ||||||||||||||||||
| Safety & Productivity | $ | 563 | $ | 573 | 2 | % | 2 | % | ||||||||||||||||||
| Total | $ | 4,855 | $ | 5,201 | 7 | % | 7 | % | ||||||||||||||||||
| Sales Growth by Geography | |||||||||||||||||||||||
| Quarter Ended Sept 30, | |||||||||||||||||||||||
| Americas | 9 | % | |||||||||||||||||||||
| Europe | 1 | % | |||||||||||||||||||||
| Asia, Middle East & Africa | 7 | % | |||||||||||||||||||||
Page 7
| Table 4 cont. | |||||||||||
| Year Ended Sept 30, | |||||||||||||||||||||||
| 2025 | 2026 | Reported | Underlying | ||||||||||||||||||||
| Sales | |||||||||||||||||||||||
| Control Systems & Software | 4,334 | $ | 4,580 | 6 | % | 5 | % | ||||||||||||||||
| Test & Measurement | 1,485 | 1,732 | 17 | % | 15 | % | |||||||||||||||||
| Software & Systems | $ | 5,819 | $ | 6,312 | 8 | % | 7 | % | |||||||||||||||
| Sensors | 4,135 | 4,302 | 4 | % | 3 | % | |||||||||||||||||
| Final Control | 5,952 | 6,194 | 4 | % | 2 | % | |||||||||||||||||
| Intelligent Devices | $ | 10,087 | $ | 10,496 | 4 | % | 3 | % | |||||||||||||||
| Safety & Productivity | $ | 2,110 | $ | 2,174 | 3 | % | 2 | % | |||||||||||||||
| Total | $ | 18,016 | $ | 18,982 | 5 | % | 4 | % | |||||||||||||||
| Sales Growth by Geography | |||||||||||||||||||||||
| Year Ended Sept 30, | |||||||||||||||||||||||
| Americas | 7 | % | |||||||||||||||||||||
| Europe | (1) | % | |||||||||||||||||||||
| Asia, Middle East & Africa | 3 | % | |||||||||||||||||||||
Page 8
| Table 4 cont. | |||||||||||
| Quarter Ended Sept 30, | Quarter Ended Sept 30, | ||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
| As Reported (GAAP) | Adjusted EBITA (Non-GAAP) | As Reported (GAAP) | Adjusted EBITA (Non-GAAP) | ||||||||||||||||||||
| Earnings | |||||||||||||||||||||||
| Control Systems & Software | $ | 186 | $ | 298 | $ | 297 | $ | 412 | |||||||||||||||
| Margins | 16.9 | % | 27.0 | % | 23.8 | % | 33.1 | % | |||||||||||||||
| Test & Measurement | (4) | 116 | 26 | 141 | |||||||||||||||||||
| Margins | (1.1) | % | 28.5 | % | 5.6 | % | 30.3 | % | |||||||||||||||
| Software & Systems | $ | 182 | $ | 414 | $ | 323 | $ | 553 | |||||||||||||||
| Margins | 12.0 | % | 27.4 | % | 18.8 | % | 32.3 | % | |||||||||||||||
| Sensors | 317 | 348 | 339 | 357 | |||||||||||||||||||
| Margins | 27.6 | % | 30.3 | % | 28.5 | % | 30.0 | % | |||||||||||||||
| Final Control | 403 | 444 | 426 | 470 | |||||||||||||||||||
| Margins | 24.6 | % | 27.2 | % | 24.7 | % | 27.2 | % | |||||||||||||||
| Intelligent Devices | $ | 720 | $ | 792 | $ | 765 | $ | 827 | |||||||||||||||
| Margins | 25.8 | % | 28.5 | % | 26.2 | % | 28.4 | % | |||||||||||||||
| Safety & Productivity | 113 | 127 | 119 | 131 | |||||||||||||||||||
| Margins | 20.1 | % | 22.6 | % | 20.7 | % | 22.9 | % | |||||||||||||||
Corporate items and interest expense, net: | |||||||||||||||||||||||
| Stock compensation | $ | (65) | $ | (55) | $ | (57) | $ | (53) | |||||||||||||||
| Unallocated pension and postretirement costs | 25 | 25 | 31 | 31 | |||||||||||||||||||
| Pension and OPEB mark-to-market adjustment | (34) | — | 2 | — | |||||||||||||||||||
| Corporate and other | (89) | (34) | (110) | (81) | |||||||||||||||||||
| Interest expense, net | (92) | — | (76) | — | |||||||||||||||||||
| Pretax Earnings / Adjusted EBITA | $ | 760 | $ | 1,269 | $ | 997 | $ | 1,408 | |||||||||||||||
| Margins | 15.6 | % | 26.1 | % | 19.2 | % | 27.1 | % | |||||||||||||||
| Supplemental Total Segment Earnings: | |||||||||||||||||||||||
| Adjusted Total Segment EBITA | $ | 1,333 | $ | 1,511 | |||||||||||||||||||
| Margins | 27.5 | % | 29.1 | % | |||||||||||||||||||
Page 9
| Year Ended Sept 30, | Year Ended Sept 30, | ||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
| As Reported (GAAP) | Adjusted EBITA (Non-GAAP) | As Reported (GAAP) | Adjusted EBITA (Non-GAAP) | ||||||||||||||||||||
| Earnings | |||||||||||||||||||||||
| Control Systems & Software | $ | 903 | $ | 1,403 | $ | 1,038 | $ | 1,467 | |||||||||||||||
| Margins | 20.8 | % | 32.4 | % | 22.7 | % | 32.0 | % | |||||||||||||||
| Test & Measurement | (68) | 375 | 47 | 503 | |||||||||||||||||||
| Margins | (4.5) | % | 25.3 | % | 2.7 | % | 29.0 | % | |||||||||||||||
| Software & Systems | $ | 835 | $ | 1,778 | $ | 1,085 | $ | 1,970 | |||||||||||||||
| Margins | 14.4 | % | 30.6 | % | 17.2 | % | 31.2 | % | |||||||||||||||
| Sensors | 1,112 | 1,182 | 1,184 | 1,259 | |||||||||||||||||||
| Margins | 26.9 | % | 28.6 | % | 27.5 | % | 29.3 | % | |||||||||||||||
| Final Control | 1,415 | 1,560 | 1,459 | 1,660 | |||||||||||||||||||
| Margins | 23.8 | % | 26.2 | % | 23.6 | % | 26.8 | % | |||||||||||||||
| Intelligent Devices | $ | 2,527 | $ | 2,742 | $ | 2,643 | $ | 2,919 | |||||||||||||||
| Margins | 25.1 | % | 27.2 | % | 25.2 | % | 27.8 | % | |||||||||||||||
| Safety & Productivity | 418 | 455 | 416 | 471 | |||||||||||||||||||
| Margins | 19.8 | % | 21.5 | % | 19.2 | % | 21.7 | % | |||||||||||||||
Corporate items and interest expense, net: | |||||||||||||||||||||||
| Stock compensation | (263) | (216) | (237) | (222) | |||||||||||||||||||
| Unallocated pension and postretirement costs | 114 | 114 | 125 | 125 | |||||||||||||||||||
| Pension and OPEB mark-to-market adjustment | (34) | — | 2 | — | |||||||||||||||||||
| Corporate and other | (455) | (175) | (211) | (209) | |||||||||||||||||||
| Interest expense, net | (237) | — | (334) | — | |||||||||||||||||||
| Pretax Earnings / Adjusted EBITA | $ | 2,905 | $ | 4,698 | $ | 3,489 | $ | 5,054 | |||||||||||||||
| Margins | 16.1 | % | 26.1 | % | 18.4 | % | 26.6 | % | |||||||||||||||
| Supplemental Total Segment Earnings: | |||||||||||||||||||||||
| Adjusted Total Segment EBITA | $ | 4,975 | $ | 5,360 | |||||||||||||||||||
| Margins | 27.6 | % | 28.2 | % | |||||||||||||||||||
Page 10
| Table 4 cont. | |||||||||||
| Quarter Ended Sept 30, | Quarter Ended Sept 30, | ||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
Amortization of Intangibles1 | Restructuring and Related Costs2 | Amortization of Intangibles1 | Restructuring and Related Costs2 | ||||||||||||||||||||
| Control Systems & Software | $ | 102 | $ | 10 | $ | 99 | $ | 16 | |||||||||||||||
| Test & Measurement | 107 | 13 | 107 | 8 | |||||||||||||||||||
| Software & Systems | $ | 209 | $ | 23 | $ | 206 | $ | 24 | |||||||||||||||
| Sensors | 12 | 19 | 11 | 7 | |||||||||||||||||||
| Final Control | 29 | 12 | 27 | 17 | |||||||||||||||||||
| Intelligent Devices | $ | 41 | $ | 31 | $ | 38 | $ | 24 | |||||||||||||||
| Safety & Productivity | 7 | 7 | 7 | 5 | |||||||||||||||||||
| Corporate | — | 20 | — | 10 | |||||||||||||||||||
| Total | $ | 257 | $ | 81 | $ | 251 | $ | 63 | |||||||||||||||
1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended September 30, 2025 and 2026, respectively. | |||||||||||||||||||||||
2 Restructuring and related costs includes $15 and $17 of restructuring-related costs for the three months ended September 30, 2025 and 2026, respectively. | |||||||||||||||||||||||
| Year Ended Sept 30, | Year Ended Sept 30, | ||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
Amortization of Intangibles1 | Restructuring and Related Costs2 | Amortization of Intangibles1 | Restructuring and Related Costs2 | ||||||||||||||||||||
| Control Systems & Software | $ | 471 | $ | 29 | $ | 402 | $ | 27 | |||||||||||||||
| Test & Measurement | 425 | 18 | 429 | 27 | |||||||||||||||||||
| Software & Systems | $ | 896 | $ | 47 | $ | 831 | $ | 54 | |||||||||||||||
| Sensors | 45 | 25 | 46 | 29 | |||||||||||||||||||
| Final Control | 115 | 30 | 108 | 93 | |||||||||||||||||||
| Intelligent Devices | $ | 160 | $ | 55 | $ | 154 | $ | 122 | |||||||||||||||
| Safety & Productivity | 27 | 10 | 28 | 27 | |||||||||||||||||||
| Corporate | — | 50 | — | 24 | |||||||||||||||||||
| Total | $ | 1,083 | $ | 162 | $ | 1,013 | $ | 227 | |||||||||||||||
1 Amortization of intangibles includes $199 and $197 reported in cost of sales for the twelve months ended September 30, 2025 and 2026, respectively. | |||||||||||||||||||||||
2 Restructuring and related costs includes $26 and $40 of restructuring-related costs for the twelve months ended September 30, 2025 and 2026, respectively. | |||||||||||||||||||||||
Page 11
| Quarter Ended Sept 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| Depreciation and Amortization | |||||||||||
| Control Systems & Software | $ | 125 | $ | 128 | |||||||
| Test & Measurement | 120 | 120 | |||||||||
| Software & Systems | 245 | 248 | |||||||||
| Sensors | 45 | 35 | |||||||||
| Final Control | 58 | 57 | |||||||||
| Intelligent Devices | 103 | 92 | |||||||||
| Safety & Productivity | 19 | 21 | |||||||||
| Corporate | 12 | 12 | |||||||||
| Total | $ | 379 | $ | 373 | |||||||
| Year Ended Sept 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| Depreciation and Amortization | |||||||||||
| Control Systems & Software | $ | 557 | $ | 502 | |||||||
| Test & Measurement | 476 | 479 | |||||||||
| Software & Systems | 1,033 | 981 | |||||||||
| Sensors | 140 | 136 | |||||||||
| Final Control | 227 | 227 | |||||||||
| Intelligent Devices | 367 | 363 | |||||||||
| Safety & Productivity | 74 | 87 | |||||||||
| Corporate | 44 | 47 | |||||||||
| Total | $ | 1,518 | $ | 1,478 | |||||||
Page 12
| Table 5 | |||||||||||
| EMERSON AND SUBSIDIARIES | |||||||||||
| ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL | |||||||||||
| (AMOUNTS 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, the mark-to-market adjustment on pension and other postretirement plans, and certain gains, losses or impairments. These metrics are useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.
| Quarter Ended Sept 30, | ||||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||||
| Stock compensation (GAAP) | $ | (65) | $ | (57) | ||||||||||||||||||||||
| Integration-related stock compensation expense | 10 | 1 | 4 | |||||||||||||||||||||||
| Adjusted stock compensation (non-GAAP) | $ | (55) | $ | (53) | ||||||||||||||||||||||
| Quarter Ended Sept 30, | |||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
| Corporate and other (GAAP) | $ | (89) | $ | (110) | |||||||||||||||||||
| Corporate restructuring and related costs | 16 | 10 | |||||||||||||||||||||
| Acquisition/divestiture fees and related costs | 39 | 28 | |||||||||||||||||||||
| IEEPA tariff refunds net of charitable trust contribution | — | (9) | |||||||||||||||||||||
| Adjusted corporate and other (Non-GAAP) | $ | (34) | $ | (81) | |||||||||||||||||||
| Quarter Ended Sept 30, | |||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
Pension income (expense) (GAAP)2 | $ | (9) | $ | 33 | |||||||||||||||||||
| Pension and OPEB mark-to-market adjustment | 34 | (2) | |||||||||||||||||||||
| Adjusted pension income (expense) (Non-GAAP) | $ | 25 | $ | 31 | |||||||||||||||||||
1 Integration-related stock compensation expense relates to NI and AspenTech and includes $4 reported as restructuring costs | |||||||||||||||||||||||
2 Pension income (expense) includes the unallocated pension and postretirement costs and the pension and OPEB mark-to market adjustment | |||||||||||||||||||||||
Page 13
| Table 5 cont. | |||||||||||
| Year Ended Sept 30, | ||||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||||
| Stock compensation (GAAP) | $ | (263) | $ | (237) | ||||||||||||||||||||||
| Integration-related stock compensation expense | 47 | 3 | 15 | 4 | ||||||||||||||||||||||
| Adjusted stock compensation (non-GAAP) | $ | (216) | $ | (222) | ||||||||||||||||||||||
| Year Ended Sept 30, | |||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
| Corporate and other (GAAP) | $ | (455) | $ | (211) | |||||||||||||||||||
| Corporate restructuring and related costs | 25 | 23 | |||||||||||||||||||||
| Acquisition/divestiture fees and related costs | 255 | 70 | |||||||||||||||||||||
| IEEPA tariff refunds net of charitable trust contribution | — | (91) | |||||||||||||||||||||
| Adjusted corporate and other (Non-GAAP) | $ | (175) | $ | (209) | |||||||||||||||||||
| Year Ended Sept 30, | |||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
Pension income (expense) (GAAP)5 | $ | 80 | $ | 127 | |||||||||||||||||||
| Pension and OPEB mark-to-market adjustment | 34 | (2) | |||||||||||||||||||||
| Adjusted pension income (expense) (Non-GAAP) | $ | 114 | $ | 125 | |||||||||||||||||||
3 Integration-related stock compensation expense relates to NI and AspenTech and includes $25 reported as restructuring costs | |||||||||||||||||||||||
4 Integration-related stock compensation expense relates to NI and AspenTech and includes $1 reported as restructuring costs | |||||||||||||||||||||||
5 Pension income (expense) includes the unallocated pension and postretirement costs and the pension and OPEB mark-to market adjustment | |||||||||||||||||||||||
Page 14
| 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, the mark-to-market adjustment on pension and other postretirement plans, 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, the mark-to-market adjustment on pension and other postretirement plans, 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 Sept 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| Pretax earnings | $ | 760 | $ | 997 | |||||||
| Percent of sales | 15.6 | % | 19.2 | % | |||||||
| Interest expense, net | 92 | 76 | |||||||||
| Amortization of intangibles | 257 | 251 | |||||||||
| Restructuring and related costs | 81 | 63 | |||||||||
| Acquisition/divestiture fees and related costs | 45 | 32 | |||||||||
| Pension and OPEB mark-to-market adjustment | 34 | (2) | |||||||||
| IEEPA tariff refunds net of charitable trust contribution | — | (9) | |||||||||
| Adjusted EBITA | $ | 1,269 | $ | 1,408 | |||||||
| Percent of sales | 26.1 | % | 27.1 | % | |||||||
| Quarter Ended Sept 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| GAAP earnings from continuing operations per share | $ | 1.07 | $ | 1.33 | |||||||
| Amortization of intangibles | 0.35 | 0.34 | |||||||||
| Restructuring and related costs | 0.11 | 0.14 | |||||||||
| Acquisition/divestiture fees and related costs | 0.06 | 0.05 | |||||||||
| Pension and OPEB mark-to-market adjustment | 0.05 | (0.01) | |||||||||
| IEEPA tariff refunds net of charitable trust contribution | — | (0.01) | |||||||||
| Discrete taxes | (0.02) | 0.02 | |||||||||
| Adjusted earnings from continuing operations per share | $ | 1.62 | $ | 1.86 | |||||||
Page 15
| Year Ended Sept 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| Pretax earnings | $ | 2,905 | $ | 3,489 | |||||||
| Percent of sales | 16.1% | 18.4% | |||||||||
| Interest expense, net | 237 | 334 | |||||||||
| Amortization of intangibles | 1,083 | 1,013 | |||||||||
| Restructuring and related costs | 162 | 227 | |||||||||
| Acquisition/divestiture fees and related costs | 277 | 84 | |||||||||
| Pension and OPEB mark-to-market adjustment | 34 | (2) | |||||||||
| IEEPA tariff refunds net of charitable trust contribution | — | (91) | |||||||||
| Adjusted EBITA | $ | 4,698 | $ | 5,054 | |||||||
| Percent of sales | 26.1 | % | 26.6 | % | |||||||
| Year Ended Sept 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| GAAP earnings from continuing operations per share | $ | 3.99 | $ | 4.79 | |||||||
| Amortization of intangibles | 1.35 | 1.38 | |||||||||
| Restructuring and related costs | 0.23 | 0.36 | |||||||||
| Acquisition/divestiture fees and related costs | 0.33 | 0.14 | |||||||||
| Discrete taxes | 0.06 | 0.05 | |||||||||
| Pension and OPEB mark-to-market adjustment | 0.05 | (0.01) | |||||||||
| IEEPA tariff refunds net of charitable trust contribution | — | (0.12) | |||||||||
| Adjusted earnings from continuing operations per share | $ | 6.01 | $ | 6.59 | |||||||
Page 16
| Table 6 cont. | |||||||||||
| Quarter Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Pretax Earnings | Income Taxes | Earnings from Cont. Ops. | Non-Controlling Interests3 | Net Earnings Common Stockholders | Diluted Earnings Per Share | ||||||||||||||||||||||||||||||
| As reported (GAAP) | $ | 997 | $ | 253 | $ | 744 | $ | — | $ | 744 | $ | 1.33 | |||||||||||||||||||||||
| Amortization of intangibles | 251 | 1 | 59 | 192 | — | 192 | 0.34 | ||||||||||||||||||||||||||||
| Restructuring and related costs | 63 | 2 | (16) | 79 | — | 79 | 0.14 | ||||||||||||||||||||||||||||
| Acquisition/divestiture fees and related costs | 32 | 3 | 29 | — | 29 | 0.05 | |||||||||||||||||||||||||||||
| Pension and OPEB mark-to-market adjustment | (2) | 1 | (3) | — | (3) | (0.01) | |||||||||||||||||||||||||||||
| IEEPA tariff refunds net of charitable trust contribution | (9) | (2) | (7) | — | (7) | (0.01) | |||||||||||||||||||||||||||||
| Discrete taxes | — | (10) | 10 | — | 10 | 0.02 | |||||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 1,332 | $ | 288 | $ | 1,044 | $ | — | $ | 1,044 | $ | 1.86 | |||||||||||||||||||||||
| Interest expense, net | $ | 76 | |||||||||||||||||||||||||||||||||
| Adjusted EBITA (Non-GAAP) | $ | 1,408 | |||||||||||||||||||||||||||||||||
1 Amortization of intangibles includes $49 reported in cost of sales. | |||||||||||||||||||||||||||||||||||
2 Restructuring and related costs includes $17 of restructuring-related costs. | |||||||||||||||||||||||||||||||||||
3 Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in. | |||||||||||||||||||||||||||||||||||
Page 17
| Year Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||
| Pretax Earnings | Income Taxes | Earnings from Cont. Ops. | Non-Controlling Interests3 | Net Earnings Common Stockholders | Diluted Earnings Per Share | ||||||||||||||||||||||||||||||
| As reported (GAAP) | $ | 3,489 | $ | 796 | $ | 2,693 | $ | 2 | $ | 2,691 | $ | 4.79 | |||||||||||||||||||||||
| Amortization of intangibles | 1,013 | 1 | 236 | 777 | — | 777 | 1.38 | ||||||||||||||||||||||||||||
| Restructuring and related costs | 227 | 2 | 24 | 203 | — | 203 | 0.36 | ||||||||||||||||||||||||||||
| Acquisition/divestiture fees and related costs | 84 | 8 | 76 | — | 76 | 0.14 | |||||||||||||||||||||||||||||
| Pension and OPEB mark-to-market adjustment | (2) | 1 | (3) | — | (3) | (0.01) | |||||||||||||||||||||||||||||
| IEEPA tariff refunds net of charitable trust contribution | (91) | (21) | (70) | — | (70) | (0.12) | |||||||||||||||||||||||||||||
| Discrete taxes | — | (28) | 28 | — | 28 | 0.05 | |||||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 4,720 | $ | 1,016 | $ | 3,704 | $ | 2 | $ | 3,702 | $ | 6.59 | |||||||||||||||||||||||
| Interest expense, net | 334 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITA (Non-GAAP) | $ | 5,054 | |||||||||||||||||||||||||||||||||
1 Amortization of intangibles includes $197 reported in cost of sales. | |||||||||||||||||||||||||||||||||||
2 Restructuring and related costs includes $40 of restructuring-related costs. | |||||||||||||||||||||||||||||||||||
3 Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in. | |||||||||||||||||||||||||||||||||||
Page 18
| 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 7 for additional non-GAAP reconciliations. | |||||||||||||||||||||||
| Q4 FY26 Underlying Sales Change | Reported | (Favorable) / Unfavorable FX | (Acquisitions) / Divestitures | Underlying | ||||||||||
| Control Systems & Software | 14 | % | — | % | — | % | 14 | % | ||||||
| Test & Measurement | 14 | % | 1 | % | — | % | 15 | % | ||||||
| Software & Systems | 14 | % | — | % | — | % | 14 | % | ||||||
| Sensors | 4 | % | (1) | % | — | % | 3 | % | ||||||
| Final Control | 5 | % | — | % | — | % | 5 | % | ||||||
| Intelligent Devices | 5 | % | (1) | % | — | % | 4 | % | ||||||
| Safety & Productivity | 2 | % | — | % | — | % | 2 | % | ||||||
| Emerson | 7 | % | — | % | — | % | 7 | % | ||||||
| Year Ended Sept 30, 2026 Underlying Sales Change | Reported | (Favorable) / Unfavorable FX | (Acquisitions) / Divestitures | Underlying | ||||||||||
| Control Systems & Software | 6 | % | (1) | % | — | % | 5 | % | ||||||
| Test & Measurement | 17 | % | (2) | % | — | % | 15 | % | ||||||
| Software & Systems | 8 | % | (1) | % | — | % | 7 | % | ||||||
| Sensors | 4 | % | (1) | % | — | % | 3 | % | ||||||
| Final Control | 4 | % | (2) | % | — | % | 2 | % | ||||||
| Intelligent Devices | 4 | % | (1) | % | — | % | 3 | % | ||||||
| Safety & Productivity | 3 | % | (1) | % | — | % | 2 | % | ||||||
| Emerson | 5 | % | (1) | % | — | % | 4 | % | ||||||
| Underlying Growth Guidance | 2027 Q1 Guidance | 2027 Guidance | ||||||
| Reported (GAAP) | ~5% | ~5% | ||||||
| (Favorable) / Unfavorable FX | - | - | ||||||
| (Acquisitions) / Divestitures | - | - | ||||||
| Underlying (non-GAAP) | ~5% | ~5% | ||||||
Page 19
| 2025 Q4 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization of Intangibles | Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||||||||||
| Control Systems & Software | $ | 186 | 16.9 | % | $ | 102 | $ | 10 | $ | 298 | 27.0 | % | ||||||||
| Test & Measurement | (4) | (1.1) | % | 107 | 13 | 116 | 28.5 | % | ||||||||||||
| Software & Systems | $ | 182 | 12.0 | % | $ | 209 | $ | 23 | $ | 414 | 27.4 | % | ||||||||
| Sensors | 317 | 27.6 | % | 12 | 19 | 348 | 30.3 | % | ||||||||||||
| Final Control | 403 | 24.6 | % | 29 | 12 | 444 | 27.2 | % | ||||||||||||
| Intelligent Devices | $ | 720 | 25.8 | % | $ | 41 | $ | 31 | $ | 792 | 28.5 | % | ||||||||
| Safety & Productivity | $ | 113 | 20.1 | % | $ | 7 | $ | 7 | $ | 127 | 22.6 | % | ||||||||
| 2026 Q4 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization of Intangibles | Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||||||||||
| Control Systems & Software | $ | 297 | 23.8 | % | $ | 99 | $ | 16 | $ | 412 | 33.1 | % | ||||||||
| Test & Measurement | 26 | 5.6 | % | 107 | 8 | 141 | 30.3 | % | ||||||||||||
| Software & Systems | $ | 323 | 18.8 | % | $ | 206 | $ | 24 | $ | 553 | 32.3 | % | ||||||||
| Sensors | 339 | 28.5 | % | 11 | 7 | 357 | 30.0 | % | ||||||||||||
| Final Control | 426 | 24.7 | % | 27 | 17 | 470 | 27.2 | % | ||||||||||||
| Intelligent Devices | $ | 765 | 26.2 | % | $ | 38 | $ | 24 | $ | 827 | 28.4 | % | ||||||||
| Safety & Productivity | $ | 119 | 20.7 | % | $ | 7 | $ | 5 | $ | 131 | 22.9 | % | ||||||||
| Total Adjusted Segment EBITA | 2025 Q4 | 2026 Q4 | |||||||||
| Pretax earnings (GAAP) | $ | 760 | $ | 997 | |||||||
| Margin | 15.6 | % | 19.2 | % | |||||||
| Corporate items and interest expense, net | 255 | 210 | |||||||||
| Amortization of intangibles | 257 | 251 | |||||||||
| Restructuring and related costs | 61 | 53 | |||||||||
| Adjusted segment EBITA (non-GAAP) | $ | 1,333 | $ | 1,511 | |||||||
| Margin | 27.5 | % | 29.1 | % | |||||||
Page 20
| 2025 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization of Intangibles | Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||||||||||
| Control Systems & Software | $ | 903 | 20.8 | % | $ | 471 | $ | 29 | $ | 1,403 | 32.4 | % | ||||||||
| Test & Measurement | (68) | (4.5) | % | 425 | 18 | 375 | 25.3 | % | ||||||||||||
| Software & Systems | $ | 835 | 14.4 | % | $ | 896 | $ | 47 | $ | 1,778 | 30.6 | % | ||||||||
| Sensors | 1,112 | 26.9 | % | 45 | 25 | 1,182 | 28.6 | % | ||||||||||||
| Final Control | 1,415 | 23.8 | % | 115 | 30 | 1,560 | 26.2 | % | ||||||||||||
| Intelligent Devices | $ | 2,527 | 25.1 | % | $ | 160 | $ | 55 | $ | 2,742 | 27.2 | % | ||||||||
| Safety & Productivity | $ | 418 | 19.8 | % | $ | 27 | $ | 10 | $ | 455 | 21.5 | % | ||||||||
| 2026 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization of Intangibles | Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||||||||||
| Control Systems & Software | $ | 1,038 | 22.7 | % | $ | 402 | $ | 27 | $ | 1,467 | 32.0 | % | ||||||||
| Test & Measurement | 47 | 2.7 | % | 429 | 27 | 503 | 29.0 | % | ||||||||||||
| Software & Systems | $ | 1,085 | 17.2 | % | $ | 831 | $ | 54 | $ | 1,970 | 31.2 | % | ||||||||
| Sensors | 1,184 | 27.5 | % | 46 | 29 | 1,259 | 29.3 | % | ||||||||||||
| Final Control | 1,459 | 23.6 | % | 108 | 93 | 1,660 | 26.8 | % | ||||||||||||
| Intelligent Devices | $ | 2,643 | 25.2 | % | $ | 154 | $ | 122 | $ | 2,919 | 27.8 | % | ||||||||
| Safety & Productivity | $ | 416 | 19.2 | % | $ | 28 | $ | 27 | $ | 471 | 21.7 | % | ||||||||
| Total Adjusted Segment EBITA | 2025 | 2026 | |||||||||
| Pretax earnings (GAAP) | $ | 2,905 | $ | 3,489 | |||||||
| Margin | 16.1 | % | 18.4 | % | |||||||
| Corporate items and interest expense, net | 875 | 655 | |||||||||
| Amortization of intangibles | 1,083 | 1,013 | |||||||||
| Restructuring and related costs | 112 | 203 | |||||||||
| Adjusted segment EBITA (non-GAAP) | $ | 4,975 | $ | 5,360 | |||||||
| Margin | 27.6 | % | 28.2 | % | |||||||
| Free Cash Flow | 2025 Q4 | 2026 Q4 | ||||||||||||||||||
| Operating cash flow (GAAP) | $ | 1,011 | $ | 1,075 | ||||||||||||||||
| Capital expenditures | (168) | (159) | ||||||||||||||||||
| Free cash flow (non-GAAP) | $ | 843 | $ | 916 | ||||||||||||||||
| Free Cash Flow | FY25 | FY26 | 2027E ($ in billions) | ||||||||||||||
| Operating cash flow (GAAP) | $ | 3,676 | $ | 3,978 | $4.3 - $4.4 | ||||||||||||
| Capital expenditures | (431) | (443) | ~(0.5) | ||||||||||||||
| Free cash flow (non-GAAP) | $ | 3,245 | $ | 3,535 | $3.8 - $3.9 | ||||||||||||
| Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures. | ||||||||||||||||||||
| Note 2: All fiscal year 2027E figures are approximate, except where range is given. | ||||||||||||||||||||