Emerson (NYSE: EMR) boosts Q3 EPS, plans $2.2B shareholder returns
Rhea-AI Filing Summary
Emerson Electric reported strong third‑quarter 2026 results, with net sales of $4.873 billion, up 7% from $4.553 billion a year earlier, and underlying sales up 6%.
Pretax earnings rose to $916 million, expanding GAAP margin to 18.8%. GAAP EPS from continuing operations was $1.28, up 24%, while adjusted EPS reached $1.71, up 13%. Operating cash flow increased 34% to $1.425 billion and free cash flow 36% to $1.323 billion.
Management raised its fiscal 2026 outlook, now targeting approximately 5% net sales growth, GAAP EPS of about $4.89 and adjusted EPS of about $6.55. The company plans to return roughly $2.2 billion to shareholders in 2026, including ~$1 billion of share repurchases and ~$1.2 billion of dividends, and declared a quarterly dividend of $0.555 per share.
Positive
- Q3 2026 net sales grew 7% to $4.873 billion, with underlying sales up 6% and broad-based strength in Software & Systems and key geographies.
- Profitability and cash generation improved sharply, with GAAP EPS up 24% to $1.28, adjusted EPS up 13% to $1.71, and free cash flow up 36% to $1.323 billion.
- Fiscal 2026 outlook was raised, including ~5% net sales growth, GAAP EPS of ~$4.89, adjusted EPS of ~$6.55, and plans to return about $2.2 billion to shareholders.
Negative
- None.
Filing Explained
The filing adds dated dividend mechanics; fiscal 2026 targets remain approximate management guidance, not completed results.
A Form 8-K reports specified material events, and this filing furnishes Emerson’s third-quarter results and updated fiscal 2026 outlook as of
The company declared a
The press release’s adjusted earnings, adjusted EBITA, underlying sales, and free-cash-flow figures are non-GAAP measures that Emerson presents as supplemental information rather than substitutes for GAAP results.
The fiscal 2026 outlook figures are approximate management guidance, so the filing establishes targets and a planned capital-allocation framework, not completed full-year results or completed shareholder returns.
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, and exhibit attachments filed with this report.
Key Figures
Q3 2026 Net Sales: $4,873 million
Q3 2026 GAAP EPS: $1.28
Q3 2026 Adjusted EPS: $1.71
+5 more
8 metrics
Q3 2026 Net Sales
$4,873 million
Quarter ended June 30, 2026; 7% growth versus Q3 2025
Q3 2026 GAAP EPS
$1.28
Earnings from continuing operations per diluted share; 24% year-over-year increase
Q3 2026 Adjusted EPS
$1.71
Adjusted earnings from continuing operations per share; 13% year-over-year increase
Q3 2026 Operating Cash Flow
$1,425 million
Operating cash flow in the quarter ended June 30, 2026; up 34% year over year
Q3 2026 Free Cash Flow
$1,323 million
Free cash flow for Q3 2026; 36% growth versus $970 million in Q3 2025
2026 GAAP EPS Guidance
~$4.89
Fiscal year 2026 earnings per share outlook
2026 Adjusted EPS Guidance
~$6.55
Fiscal year 2026 adjusted earnings per share outlook
Planned 2026 Capital Returns
~$2.2 billion
Approximate 2026 cash returns via ~$1B buybacks and ~$1.2B dividends
Key Terms
Adjusted segment EBITA, Free cash flow, Underlying sales, Non-GAAP financial measures, +1 more
5 terms
Adjusted segment EBITA financial
"The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles"
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) | $ | 970 | | $ | 1,323 | | | ~$3.6"
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.
Underlying sales financial
"Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures."
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.
Non-GAAP financial measures financial
"The press release contains non-GAAP financial measures as such term is defined in Regulation G"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
IEEPA tariff refunds financial
"IEEPA tariff refunds | — | | (82)"
Refunds under the International Emergency Economic Powers Act (IEEPA) are repayments of import duties, fees, or penalties that were charged because of trade restrictions or sanctions put in place under emergency authority and later reversed, modified, or found inapplicable. For investors, these refunds can change a company’s past cash outflows and future cost structure—similar to getting a billed charge returned after a rule change—affecting reported earnings or cash available for other uses.
Earnings Snapshot
Q3 2026 Net Sales: $4,873 million · Guidance included
Third quarter ended June 30, 2026
Q3 2026 Net Sales
$4,873 million
7% vs Q3 2025
Q3 2026 GAAP EPS from continuing operations
$1.28
24% vs Q3 2025
Q3 2026 Adjusted EPS
$1.71
13% vs Q3 2025
Q3 2026 Operating Cash Flow
$1,425 million
34% vs Q3 2025
Q3 2026 Free Cash Flow
$1,323 million
36% vs Q3 2025
Guidance
For fiscal 2026, Emerson targets approximately 5% net sales growth and underlying sales growth of about 3.5%, GAAP EPS of roughly $4.89 and adjusted EPS of about $6.55. The company expects operating cash flow of about $4.1 billion, free cash flow of about $3.6 billion, and plans to return approximately $2.2 billion to shareholders through about $1 billion of share repurchases and about $1.2 billion of dividends.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Emerson (EMR) net sales and growth in Q3 2026?
Emerson reported Q3 2026 net sales of $4.873 billion, an increase of 7% from $4.553 billion in Q3 2025. Underlying sales, which exclude currency and major M&A, grew 6%, reflecting broad-based demand strength.
What cash flow did Emerson (EMR) generate in Q3 2026?
Emerson generated operating cash flow of $1.425 billion in Q3 2026, up 34% versus a year earlier. Free cash flow was $1.323 billion, a 36% increase, after $102 million of capital expenditures during the quarter.
How did Emerson (EMR) change its fiscal 2026 outlook?
Emerson raised its fiscal 2026 guidance, now expecting ~5% net sales growth and GAAP EPS of about $4.89. Adjusted EPS is projected around $6.55, with underlying sales growth of roughly 3.5% for the year.
What dividend did Emerson (EMR) declare with its Q3 2026 results?
Emerson declared a quarterly cash dividend of $0.555 per share of common stock. The dividend is payable on September 10, 2026 to stockholders of record as of August 14, 2026.
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): August 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 Tuesday, August 4, 2026, a press release was issued regarding the third quarter 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 August 4, 2026 press release announcing third quarter 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: | August 4, 2026 | By: | /s/ John A. Sperino | ||||||||
John A. Sperino Vice President and Assistant Secretary | |||||||||||
Exhibit 99.1
Emerson Reports Third Quarter 2026 Results; Raises 2026 Outlook
ST. LOUIS, August 4, 2026 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results1 for its third quarter ended June 30, 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 September 10, 2026 to stockholders of record on August 14, 2026.
| (dollars in millions, except per share) | 2025 Q3 | 2026 Q3 | Change | ||||||||
Underlying Orders2 | 7% | ||||||||||
| Net Sales | $4,553 | $4,873 | 7% | ||||||||
Underlying Sales3 | 6% | ||||||||||
| Pretax Earnings | $734 | $916 | |||||||||
| Margin | 16.1% | 18.8% | 270 bps | ||||||||
Adjusted Segment EBITA4 | $1,232 | $1,387 | |||||||||
| Margin | 27.1% | 28.5% | 140 bps | ||||||||
| GAAP Earnings Per Share | $1.03 | $1.28 | 24% | ||||||||
Adjusted Earnings Per Share5 | $1.52 | $1.71 | 13% | ||||||||
| Operating Cash Flow | $1,062 | $1,425 | 34% | ||||||||
| Free Cash Flow | $970 | $1,323 | 36% | ||||||||
Management Commentary
“Emerson had an outstanding third quarter with sales, margin expansion, earnings and cash flow all exceeding expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Demand was robust, with underlying orders up 7%, led by Software & Systems and broad-based growth in North America and Asia. The conflict in the Middle East remains fluid, and I am proud of our team's ability to deliver results and support our customers around the world."
Karsanbhai continued, "We are raising our full year guidance, reflecting our strong third quarter performance and healthy demand. Secular tailwinds continue to support sustained investment in our growth verticals and provide a solid foundation as we finish 2026 and look ahead to 2027."
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 Q4 | 2026 | ||||||
| Net Sales Growth | ~5% | ~5% | ||||||
| Underlying Sales Growth | ~5% | ~3.5% | ||||||
| Earnings Per Share | ~$1.45 | ~$4.89 | ||||||
| Amortization of intangibles | ~$0.34 | ~$1.39 | ||||||
| Restructuring and related costs | ~$0.03 | ~$0.24 | ||||||
| Acquisition/divestiture fees and related costs | ~$0.01 | ~$0.09 | ||||||
| Discrete taxes | ~$0.02 | ~$0.05 | ||||||
| IEEPA tariff refunds | - | ~($0.11) | ||||||
| Adjusted Earnings Per Share | ~$1.85 | ~$6.55 | ||||||
| Operating Cash Flow | ~$4.1B | |||||||
| Free Cash Flow | ~$3.6B | |||||||
1 Results are presented on a continuing operations basis.
2 Underlying orders do not include AspenTech.
3 Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.
4 Adjusted segment EBITA represents segment earnings excluding restructuring 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, discrete taxes and certain gains, losses or impairments.
Page 2
Conference Call
Today, beginning at 3:30 p.m. Central Time / 4:30 p.m. Eastern Time, Emerson management will discuss the third 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)
Page 3
| Table 1 | |||||||||||||||||||||||
| EMERSON AND SUBSIDIARIES | |||||||||||||||||||||||
| CONSOLIDATED OPERATING RESULTS | |||||||||||||||||||||||
| (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) | |||||||||||||||||||||||
| Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||||||||||||||
| Net sales | $ | 4,553 | $ | 4,873 | $ | 13,161 | $ | 13,781 | |||||||||||||||
| Cost of sales | 2,160 | 2,218 | 6,161 | 6,393 | |||||||||||||||||||
| SG&A expenses | 1,266 | 1,343 | 3,773 | 3,902 | |||||||||||||||||||
| Other deductions, net | 298 | 311 | 944 | 744 | |||||||||||||||||||
| Interest expense, net | 95 | 85 | 145 | 258 | |||||||||||||||||||
| Earnings from continuing operations before income taxes | 734 | 916 | 2,138 | 2,484 | |||||||||||||||||||
| Income taxes | 154 | 198 | 536 | 542 | |||||||||||||||||||
| Earnings from continuing operations | 580 | 718 | 1,602 | 1,942 | |||||||||||||||||||
| Discontinued operations, net of tax | 6 | — | 7 | — | |||||||||||||||||||
| Net earnings | 586 | 718 | 1,609 | 1,942 | |||||||||||||||||||
| Less: Noncontrolling interests in subsidiaries | — | — | (48) | 1 | |||||||||||||||||||
| Net earnings common stockholders | $ | 586 | $ | 718 | $ | 1,657 | $ | 1,941 | |||||||||||||||
| Earnings common stockholders | |||||||||||||||||||||||
| Earnings from continuing operations | 580 | 718 | 1,650 | 1,941 | |||||||||||||||||||
| Discontinued operations | 6 | — | 7 | — | |||||||||||||||||||
| Net earnings common stockholders | $ | 586 | $ | 718 | $ | 1,657 | $ | 1,941 | |||||||||||||||
| Diluted avg. shares outstanding | 564.7 | 561.1 | 567.1 | 562.7 | |||||||||||||||||||
| Diluted earnings per share common stockholders | |||||||||||||||||||||||
| Earnings from continuing operations | $ | 1.03 | $ | 1.28 | $ | 2.91 | $ | 3.45 | |||||||||||||||
| Discontinued operations | 0.01 | — | 0.01 | — | |||||||||||||||||||
| Diluted earnings per common share | $ | 1.04 | $ | 1.28 | $ | 2.92 | $ | 3.45 | |||||||||||||||
| Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||||||||||||||
| Other deductions, net | |||||||||||||||||||||||
| Amortization of intangibles | $ | 219 | $ | 204 | $ | 677 | $ | 613 | |||||||||||||||
| Restructuring costs | 37 | 87 | 70 | 141 | |||||||||||||||||||
| Other | 42 | 20 | 197 | (10) | |||||||||||||||||||
| Total | $ | 298 | $ | 311 | $ | 944 | $ | 744 | |||||||||||||||
Page 4
| Table 2 | |||||||||||
| EMERSON AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (DOLLARS IN MILLIONS, UNAUDITED) | |||||||||||
| Sept 30, 2025 | June 30, 2026 | ||||||||||
| Assets | |||||||||||
| Cash and equivalents | $ | 1,544 | $ | 2,180 | |||||||
| Receivables, net | 3,101 | 3,057 | |||||||||
| Inventories | 2,213 | 2,513 | |||||||||
| Other current assets | 1,725 | 1,905 | |||||||||
| Total current assets | 8,583 | 9,655 | |||||||||
| Property, plant & equipment, net | 2,871 | 2,861 | |||||||||
| Goodwill | 18,193 | 18,122 | |||||||||
| Other intangible assets | 9,458 | 8,686 | |||||||||
| Other | 2,859 | 2,884 | |||||||||
| Total assets | $ | 41,964 | $ | 42,208 | |||||||
| Liabilities and equity | |||||||||||
| Short-term borrowings and current maturities of long-term debt | $ | 4,797 | $ | 5,587 | |||||||
| Accounts payable | 1,384 | 1,613 | |||||||||
| Accrued expenses | 3,616 | 3,572 | |||||||||
| Total current liabilities | 9,797 | 10,772 | |||||||||
| Long-term debt | 8,319 | 7,526 | |||||||||
| Other liabilities | 3,550 | 3,516 | |||||||||
| Equity | |||||||||||
| Common stockholders' equity | 20,282 | 20,379 | |||||||||
| Noncontrolling interests in subsidiaries | 16 | 15 | |||||||||
| Total equity | 20,298 | 20,394 | |||||||||
| Total liabilities and equity | $ | 41,964 | $ | 42,208 | |||||||
Page 5
| Table 3 | ||||||||||||||
| EMERSON AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| (DOLLARS IN MILLIONS, UNAUDITED) | ||||||||||||||
| Nine Months Ended June 30, | ||||||||||||||
| 2025 | 2026 | |||||||||||||
| Operating activities | ||||||||||||||
| Net earnings | $ | 1,609 | $ | 1,942 | ||||||||||
| Earnings from discontinued operations, net of tax | (7) | — | ||||||||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 1,139 | 1,105 | ||||||||||||
| Stock compensation | 198 | 181 | ||||||||||||
| Changes in operating working capital | (80) | (320) | ||||||||||||
| Other, net | (195) | (6) | ||||||||||||
| Cash from continuing operations | 2,664 | 2,902 | ||||||||||||
| Cash from discontinued operations | (576) | — | ||||||||||||
| Cash provided by operating activities | 2,088 | 2,902 | ||||||||||||
| Investing activities | ||||||||||||||
| Capital expenditures | (263) | (284) | ||||||||||||
| Purchases of businesses, net of cash and equivalents acquired | (36) | — | ||||||||||||
| Other, net | (94) | (38) | ||||||||||||
| Cash used in investing activities | (393) | (322) | ||||||||||||
| Financing activities | ||||||||||||||
| Net increase in short-term borrowings | 1,419 | 1,434 | ||||||||||||
| Proceeds from short-term borrowings greater than three months | 5,292 | 6,229 | ||||||||||||
| Payments of short-term borrowings greater than three months | (1,349) | (7,028) | ||||||||||||
| Proceeds from long-term debt | 1,544 | — | ||||||||||||
| Payments of long-term debt | (503) | (588) | ||||||||||||
| Dividends paid | (895) | (935) | ||||||||||||
| Purchases of common stock | (1,147) | (898) | ||||||||||||
| Purchase of noncontrolling interest | (7,244) | — | ||||||||||||
| Settlement of AspenTech share awards | (76) | — | ||||||||||||
| Other, net | (60) | (134) | ||||||||||||
| Cash used in financing activities | (3,019) | (1,920) | ||||||||||||
| Effect of exchange rate changes on cash and equivalents | (45) | (24) | ||||||||||||
| Increase (decrease) in cash and equivalents | (1,369) | 636 | ||||||||||||
| Beginning cash and equivalents | 3,588 | 1,544 | ||||||||||||
| Ending cash and equivalents | $ | 2,219 | $ | 2,180 | ||||||||||
Page 6
| 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 June 30, | ||||||||||||||||||||||||||
| 2025 | 2026 | Reported | Underlying | |||||||||||||||||||||||
| Sales | ||||||||||||||||||||||||||
| Control Systems & Software | $ | 1,120 | $ | 1,199 | 7 | % | 7 | % | ||||||||||||||||||
| Test & Measurement | 360 | 445 | 23 | % | 23 | % | ||||||||||||||||||||
| Software & Systems | $ | 1,480 | $ | 1,644 | 11 | % | 11 | % | ||||||||||||||||||
| Sensors | 1,013 | 1,091 | 8 | % | 7 | % | ||||||||||||||||||||
| Final Control | 1,522 | 1,586 | 4 | % | 3 | % | ||||||||||||||||||||
| Intelligent Devices | $ | 2,535 | $ | 2,677 | 6 | % | 5 | % | ||||||||||||||||||
| Safety & Productivity | $ | 538 | $ | 552 | 3 | % | 2 | % | ||||||||||||||||||
| Total | $ | 4,553 | $ | 4,873 | 7 | % | 6 | % | ||||||||||||||||||
| Sales Growth by Geography | ||||||||||||||||||||
| Quarter Ended June 30, | ||||||||||||||||||||
| Americas | 8 | % | ||||||||||||||||||
| Europe | (1) | % | ||||||||||||||||||
| Asia, Middle East & Africa | 8 | % | ||||||||||||||||||
Page 7
| Table 4 cont. | |||||||||||
| Nine Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2026 | Reported | Underlying | ||||||||||||||||||||
| Sales | |||||||||||||||||||||||
| Control Systems & Software | $ | 3,235 | $ | 3,332 | 3 | % | 2 | % | |||||||||||||||
| Test & Measurement | 1,077 | 1,268 | 18 | % | 15 | % | |||||||||||||||||
| Software & Systems | $ | 4,312 | $ | 4,600 | 7 | % | 5 | % | |||||||||||||||
| Sensors | 2,986 | 3,111 | 4 | % | 2 | % | |||||||||||||||||
| Final Control | 4,315 | 4,469 | 4 | % | 2 | % | |||||||||||||||||
| Intelligent Devices | $ | 7,301 | $ | 7,580 | 4 | % | 2 | % | |||||||||||||||
| Safety & Productivity | $ | 1,548 | $ | 1,601 | 3 | % | 2 | % | |||||||||||||||
| Total | $ | 13,161 | $ | 13,781 | 5 | % | 3 | % | |||||||||||||||
| Sales Growth by Geography | |||||||||||||||||||||||
| Nine Months Ended June 30, | |||||||||||||||||||||||
| Americas | 6 | % | |||||||||||||||||||||
| Europe | (1) | % | |||||||||||||||||||||
| Asia, Middle East & Africa | 1 | % | |||||||||||||||||||||
Page 8
| Table 4 cont. | |||||||||||
| Quarter Ended June 30, | Quarter Ended June 30, | ||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
| As Reported (GAAP) | Adjusted EBITA (Non-GAAP) | As Reported (GAAP) | Adjusted EBITA (Non-GAAP) | ||||||||||||||||||||
| Earnings | |||||||||||||||||||||||
| Control Systems & Software | $ | 271 | $ | 393 | $ | 285 | $ | 391 | |||||||||||||||
| Margins | 24.2 | % | 35.2 | % | 23.8 | % | 32.6 | % | |||||||||||||||
| Test & Measurement | (26) | 81 | 11 | 132 | |||||||||||||||||||
| Margins | (7.2) | % | 22.4 | % | 2.6 | % | 29.6 | % | |||||||||||||||
| Software & Systems | $ | 245 | $ | 474 | $ | 296 | $ | 523 | |||||||||||||||
| Margins | 16.6 | % | 32.1 | % | 18.0 | % | 31.8 | % | |||||||||||||||
| Sensors | 246 | 259 | 303 | 323 | |||||||||||||||||||
| Margins | 24.2 | % | 25.5 | % | 27.7 | % | 29.7 | % | |||||||||||||||
| Final Control | 351 | 389 | 349 | 424 | |||||||||||||||||||
| Margins | 23.1 | % | 25.5 | % | 22.0 | % | 26.7 | % | |||||||||||||||
| Intelligent Devices | $ | 597 | $ | 648 | $ | 652 | $ | 747 | |||||||||||||||
| Margins | 23.5 | % | 25.5 | % | 24.3 | % | 27.9 | % | |||||||||||||||
| Safety & Productivity | $ | 103 | $ | 110 | $ | 93 | $ | 117 | |||||||||||||||
| Margins | 19.2 | % | 20.4 | % | 16.9 | % | 21.2 | % | |||||||||||||||
Corporate items and interest expense, net: | |||||||||||||||||||||||
| Stock compensation | (71) | (45) | (68) | (64) | |||||||||||||||||||
| Unallocated pension and postretirement costs | 27 | 27 | 29 | 29 | |||||||||||||||||||
| Corporate and other | (72) | (31) | (1) | (49) | |||||||||||||||||||
| Interest expense, net | (95) | — | (85) | — | |||||||||||||||||||
| Pretax Earnings / Adjusted EBITA | $ | 734 | $ | 1,183 | $ | 916 | $ | 1,303 | |||||||||||||||
| Margins | 16.1 | % | 26.0 | % | 18.8 | % | 26.7 | % | |||||||||||||||
| Supplemental Total Segment Earnings: | |||||||||||||||||||||||
| Adjusted Total Segment EBITA | $ | 1,232 | $ | 1,387 | |||||||||||||||||||
| Margins | 27.1 | % | 28.5 | % | |||||||||||||||||||
Page 9
| Table 4 cont. | |||||||||||
| Quarter Ended June 30, | Quarter Ended June 30, | |||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||||
Amortization of Intangibles1 | Restructuring and Related Costs2 | Amortization of Intangibles1 | Restructuring and Related Costs2 | |||||||||||||||||||||||
| Control Systems & Software | $ | 114 | $ | 8 | $ | 100 | $ | 6 | ||||||||||||||||||
| Test & Measurement | 107 | — | 108 | 13 | ||||||||||||||||||||||
| Software & Systems | $ | 221 | $ | 8 | $ | 208 | $ | 19 | ||||||||||||||||||
| Sensors | 11 | 2 | 11 | 9 | ||||||||||||||||||||||
| Final Control | 30 | 8 | 27 | 48 | ||||||||||||||||||||||
| Intelligent Devices | $ | 41 | $ | 10 | $ | 38 | $ | 57 | ||||||||||||||||||
| Safety & Productivity | $ | 7 | $ | — | $ | 7 | $ | 17 | ||||||||||||||||||
| Corporate | — | 23 | 3 | — | 6 | |||||||||||||||||||||
| Total | $ | 269 | $ | 41 | $ | 253 | $ | 99 | ||||||||||||||||||
1 Amortization of intangibles includes $50 and $49 reported in cost of sales for the three months ended June 30, 2025 and 2026, respectively. | ||||||||||||||||||||||||||
2 Restructuring and related costs includes $4 and $12 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2025 and 2026, respectively. | ||||||||||||||||||||||||||
3 Corporate restructuring and related costs of $23 for the three months ended June 30, 2025 includes $20 related to integration-related stock compensation expense attributable to AspenTech. | ||||||||||||||||||||||||||
| Quarter Ended June 30, | |||||||||||
| Depreciation and Amortization | 2025 | 2026 | |||||||||
| Control Systems & Software | $ | 135 | $ | 128 | |||||||
| Test & Measurement | 119 | 120 | |||||||||
| Software & Systems | 254 | 248 | |||||||||
| Sensors | 32 | 34 | |||||||||
| Final Control | 56 | 56 | |||||||||
| Intelligent Devices | 88 | 90 | |||||||||
| Safety & Productivity | 19 | 27 | |||||||||
| Corporate | 11 | 12 | |||||||||
| Total | $ | 372 | $ | 377 | |||||||
Page 10
| 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 June 30, | ||||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||||
| Stock compensation (GAAP) | $ | (71) | $ | (68) | ||||||||||||||||||||||
| Integration-related stock compensation expense | 26 | 1 | 4 | |||||||||||||||||||||||
| Adjusted stock compensation (non-GAAP) | $ | (45) | $ | (64) | ||||||||||||||||||||||
| Quarter Ended June 30, | |||||||||||||||||||||||
| 2025 | 2026 | ||||||||||||||||||||||
| Corporate and other (GAAP) | $ | (72) | $ | (1) | |||||||||||||||||||
| Corporate restructuring and related costs | 3 | 6 | |||||||||||||||||||||
| Acquisition / divestiture costs | 38 | 28 | |||||||||||||||||||||
| IEEPA tariff refunds | — | (82) | |||||||||||||||||||||
| Adjusted corporate and other (non-GAAP) | $ | (31) | $ | (49) | |||||||||||||||||||
1 Integration-related stock compensation expense for the three months ended June 30, 2025 includes $24 related to AspenTech of which $20 is reported as restructuring costs, and $2 related to NI. | |||||||||||||||||||||||
Page 11
| 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 and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring and related costs, 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 June 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| Pretax earnings | $ | 734 | $ | 916 | |||||||
| Percent of sales | 16.1 | % | 18.8 | % | |||||||
| Interest expense, net | 95 | 85 | |||||||||
| Amortization of intangibles | 269 | 253 | |||||||||
| Restructuring and related costs | 41 | 99 | |||||||||
| Acquisition/divestiture fees and related costs | 44 | 32 | |||||||||
| IEEPA tariff refunds | — | (82) | |||||||||
| Adjusted EBITA | $ | 1,183 | $ | 1,303 | |||||||
| Percent of sales | 26.0 | % | 26.7 | % | |||||||
| Quarter Ended June 30, | |||||||||||
| 2025 | 2026 | ||||||||||
| GAAP earnings from continuing operations per share | $ | 1.03 | $ | 1.28 | |||||||
| Amortization of intangibles | 0.37 | 0.35 | |||||||||
| Restructuring and related costs | 0.06 | 0.13 | |||||||||
| Acquisition/divestiture fees and related costs | 0.06 | 0.05 | |||||||||
| Discrete taxes | — | 0.01 | |||||||||
| IEEPA tariff refunds | — | (0.11) | |||||||||
| Adjusted earnings from continuing operations per share | $ | 1.52 | $ | 1.71 | |||||||
Page 12
| Table 6 cont. | |||||||||||
| Quarter Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||
| Pretax Earnings | Income Taxes | Earnings from Cont. Ops. | Non-Controlling Interests | Net Earnings Common Stockholders | Diluted Earnings Per Share | ||||||||||||||||||||||||||||||
| As reported (GAAP) | $ | 916 | $ | 198 | $ | 718 | $ | — | $ | 718 | $ | 1.28 | |||||||||||||||||||||||
| Amortization of intangibles | 253 | 1 | 59 | 194 | — | 194 | 0.35 | ||||||||||||||||||||||||||||
| Restructuring and related costs | 99 | 2 | 25 | 74 | — | 74 | 0.13 | ||||||||||||||||||||||||||||
| Acquisition/divestiture fees and related costs | 32 | 2 | 30 | — | 30 | 0.05 | |||||||||||||||||||||||||||||
| Discrete taxes | — | (7) | 7 | — | 7 | 0.01 | |||||||||||||||||||||||||||||
| IEEPA tariff refunds | (82) | (19) | (63) | — | (63) | (0.11) | |||||||||||||||||||||||||||||
| Adjusted (non-GAAP) | $ | 1,218 | $ | 258 | $ | 960 | $ | — | $ | 960 | $ | 1.71 | |||||||||||||||||||||||
| Interest expense, net | 85 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITA (non-GAAP) | $ | 1,303 | |||||||||||||||||||||||||||||||||
1 Amortization of intangibles includes $49 reported in cost of sales. | |||||||||||||||||||||||||||||||||||
2 Restructuring and related costs includes $12 reported in cost of sales and selling, general and administrative expenses. | |||||||||||||||||||||||||||||||||||
Page 13
| 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 Q3 Underlying Sales Change | Reported | (Favorable) / Unfavorable FX | (Acquisitions) / Divestitures | Underlying | ||||||||||
| Control Systems & Software | 7 | % | — | % | — | % | 7 | % | ||||||
| Test & Measurement | 23 | % | — | % | — | % | 23 | % | ||||||
| Software & Systems | 11 | % | — | % | — | % | 11 | % | ||||||
| Sensors | 8 | % | (1) | % | — | % | 7 | % | ||||||
| Final Control | 4 | % | (1) | % | — | % | 3 | % | ||||||
| Intelligent Devices | 6 | % | (1) | % | — | % | 5 | % | ||||||
| Safety & Productivity | 3 | % | (1) | % | — | % | 2 | % | ||||||
| Emerson | 7 | % | (1) | % | — | % | 6 | % | ||||||
| Nine Months Ended June 30, 2026 Underlying Sales Change | Reported | (Favorable) / Unfavorable FX | (Acquisitions) / Divestitures | Underlying | ||||||||||
| Control Systems & Software | 3 | % | (1) | % | — | % | 2 | % | ||||||
| Test & Measurement | 18 | % | (3) | % | — | % | 15 | % | ||||||
| Software & Systems | 7 | % | (2) | % | — | % | 5 | % | ||||||
| Sensors | 4 | % | (2) | % | — | % | 2 | % | ||||||
| Final Control | 4 | % | (2) | % | — | % | 2 | % | ||||||
| Intelligent Devices | 4 | % | (2) | % | — | % | 2 | % | ||||||
| Safety & Productivity | 3 | % | (1) | % | — | % | 2 | % | ||||||
| Emerson | 5 | % | (2) | % | — | % | 3 | % | ||||||
| Underlying Growth Guidance | 2026 Q4 Guidance | 2026 Guidance | ||||||
| Reported (GAAP) | ~5% | ~5% | ||||||
| (Favorable) / Unfavorable FX | - | ~(1.5 pts) | ||||||
| (Acquisitions) / Divestitures | - | - | ||||||
| Underlying (non-GAAP) | ~5% | ~3.5% | ||||||
| 2025 Q3 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization of Intangibles | Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||||||||||
| Control Systems & Software | $ | 271 | 24.2 | % | $ | 114 | $ | 8 | $ | 393 | 35.2 | % | ||||||||
| Test & Measurement | (26) | (7.2) | % | 107 | — | 81 | 22.4 | % | ||||||||||||
| Software & Systems | $ | 245 | 16.6 | % | $ | 221 | $ | 8 | $ | 474 | 32.1 | % | ||||||||
| Sensors | 246 | 24.2 | % | 11 | 2 | 259 | 25.5 | % | ||||||||||||
| Final Control | 351 | 23.1 | % | 30 | 8 | 389 | 25.5 | % | ||||||||||||
| Intelligent Devices | $ | 597 | 23.5 | % | $ | 41 | $ | 10 | $ | 648 | 25.5 | % | ||||||||
| Safety & Productivity | $ | 103 | 19.2 | % | $ | 7 | $ | — | $ | 110 | 20.4 | % | ||||||||
Page 14
| 2026 Q3 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization of Intangibles | Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||||||||||
| Control Systems & Software | $ | 285 | 23.8 | % | $ | 100 | $ | 6 | $ | 391 | 32.6 | % | ||||||||
| Test & Measurement | 11 | 2.6 | % | 108 | 13 | 132 | 29.6 | % | ||||||||||||
| Software & Systems | $ | 296 | 18.0 | % | $ | 208 | $ | 19 | $ | 523 | 31.8 | % | ||||||||
| Sensors | 303 | 27.7 | % | 11 | 9 | 323 | 29.7 | % | ||||||||||||
| Final Control | 349 | 22.0 | % | 27 | 48 | 424 | 26.7 | % | ||||||||||||
| Intelligent Devices | $ | 652 | 24.3 | % | $ | 38 | $ | 57 | $ | 747 | 27.9 | % | ||||||||
| Safety & Productivity | $ | 93 | 16.9 | % | $ | 7 | $ | 17 | $ | 117 | 21.2 | % | ||||||||
| Total Adjusted Segment EBITA | 2025 Q3 | 2026 Q3 | |||||||||
| Pretax earnings (GAAP) | $ | 734 | $ | 916 | |||||||
| Margin | 16.1 | % | 18.8 | % | |||||||
| Corporate items and interest expense, net | 211 | 125 | |||||||||
| Amortization of intangibles | 269 | 253 | |||||||||
| Restructuring and related costs | 18 | 93 | |||||||||
| Adjusted segment EBITA (non-GAAP) | $ | 1,232 | $ | 1,387 | |||||||
| Margin | 27.1 | % | 28.5 | % | |||||||
| Free Cash Flow | 2025 Q3 | 2026 Q3 | 2026E ($ in billions) | |||||||||||||||||
| Operating cash flow (GAAP) | $ | 1,062 | $ | 1,425 | ~$4.1 | |||||||||||||||
| Capital expenditures | (92) | (102) | ~(0.45) | |||||||||||||||||
| Free cash flow (non-GAAP) | $ | 970 | $ | 1,323 | ~$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. | ||||||||||||||||||||