Emerson Reports First Quarter 2026 Results; Updates 2026 Outlook
ST. LOUIS, Feb. 3, 2026 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results for its first quarter ended December 31, 2025 and updated its full year outlook for fiscal 2026. Emerson also declared a quarterly cash dividend of $0.555 per share of common stock payable March 10, 2026 to stockholders of record on February 13, 2026.
(dollars in millions, except per share) | 2025 Q1 | 2026 Q1 | Change |
Underlying Orders1 | 9 % | ||
Net Sales | $4,175 | $4,346 | 4 % |
Underlying Sales2 | 2 % | ||
Pretax Earnings | $775 | $775 | |
Margin | 18.6 % | 17.8 % | (80) bps |
Adjusted Segment EBITA3 | $1,169 | $1,203 | |
Margin | 28.0 % | 27.7 % | (30) bps |
GAAP Earnings Per Share | $1.02 | $1.07 | 5 % |
Adjusted Earnings Per Share4 | $1.38 | $1.46 | 6 % |
Operating Cash Flow | $777 | $699 | (10) % |
Free Cash Flow | $694 | $602 | (13) % |
Management Commentary
"Emerson met sales commitments and exceeded expectations for profitability as our global teams continue to execute well," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We delivered a fourth consecutive quarter of strong underlying orders growth, and we are experiencing robust demand for our automation technology, led by Software & Systems, with strength in North America, India and the Middle East & Africa."
Karsanbhai continued, "Emerson is accelerating innovation, introducing new products and delivering on the critical programs we highlighted at our 2025 investor conference. These releases advance our capabilities in software-defined automation and further enhance our leadership position in high-growth verticals."
2026 Outlook
The following tables summarize the fiscal year 2026 guidance framework. As we pivot capital allocation to returning cash to shareholders, the 2026 outlook assumes returning ~$2.2B through ~$1B share repurchases and ~$1.2B of dividends.
2026 Q2 | 2026 | |
Net Sales Growth | 3% - 4% | ~5.5% |
Underlying Sales Growth | 1% - 2% | ~4% |
Earnings Per Share | $1.06 - $1.11 | $4.78 - $4.93 |
Amortization of intangibles | ~$0.35 | ~$1.38 |
Restructuring and related costs | ~$0.06 | ~$0.14 |
Acquisition/divestiture fees and related costs | ~$0.02 | ~$0.06 |
Discrete taxes | ~$0.01 | ~$0.04 |
Adjusted Earnings Per Share | $1.50 - $1.55 | $6.40 - $6.55 |
Operating Cash Flow | $4.0B - $4.1B | |
Free Cash Flow | $3.5B - $3.6B | |
Share Repurchase | ~$1.0B |
1 Underlying orders do not include AspenTech. |
2 Underlying sales exclude the impact of currency translation, and significant acquisitions and divestitures. |
3 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense. |
4 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes. |
Conference Call
Today, beginning at 3:30 p.m. Central Time / 4:30 p.m. Eastern Time, Emerson management will discuss the first quarter results during an investor conference call. Participants can access a live webcast available at https://ir.emerson.com at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.
About Emerson
Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly historical may be "forward-looking" statements, which represent management's expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.
Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Investors: | Media: |
Doug Ashby | Joseph Sala / Greg Klassen |
(314) 553-2197 | Joele Frank, Wilkinson Brimmer Katcher |
(212) 355-4449 |
(tables attached)
Table 1 | |||
EMERSON AND SUBSIDIARIES | |||
CONSOLIDATED OPERATING RESULTS | |||
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) | |||
Quarter Ended Dec 31, | |||
2024 | 2025 | ||
Net sales | $ 4,175 | $ 4,346 | |
Cost and expenses | |||
Cost of sales | 1,940 | 2,035 | |
SG&A expenses | 1,224 | 1,242 | |
Other deductions, net | 228 | 204 | |
Interest expense, net | 8 | 90 | |
Earnings before income taxes | 775 | 775 | |
Income taxes | 182 | 169 | |
Net earnings | 593 | 606 | |
Less: Noncontrolling interests in subsidiaries | 8 | 1 | |
Net earnings common stockholders | $ 585 | $ 605 | |
Diluted avg. shares outstanding | 571.1 | 564.1 | |
Diluted earnings per share common stockholders | |||
Diluted earnings per common share | $ 1.02 | $ 1.07 | |
Quarter Ended Dec 31, | |||
2024 | 2025 | ||
Other deductions, net | |||
Amortization of intangibles | $ 229 | $ 205 | |
Restructuring costs | 11 | 9 | |
Other | (12) | (10) | |
Total | $ 228 | $ 204 | |
Table 2 | |||
EMERSON AND SUBSIDIARIES | |||
CONSOLIDATED BALANCE SHEETS | |||
(DOLLARS IN MILLIONS, UNAUDITED) | |||
Sept 30, 2025 | Dec 31, 2025 | ||
Assets | |||
Cash and equivalents | $ 1,544 | $ 1,748 | |
Receivables, net | 3,101 | 2,972 | |
Inventories | 2,213 | 2,353 | |
Other current assets | 1,725 | 1,770 | |
Total current assets | 8,583 | 8,843 | |
Property, plant & equipment, net | 2,871 | 2,867 | |
Goodwill | 18,193 | 18,182 | |
Other intangibles | 9,458 | 9,205 | |
Other | 2,859 | 2,842 | |
Total assets | $ 41,964 | $ 41,939 | |
Liabilities and equity | |||
Short-term borrowings and current maturities of long-term debt | $ 4,797 | $ 5,832 | |
Accounts payable | 1,384 | 1,339 | |
Accrued expenses | 3,616 | 3,349 | |
Total current liabilities | 9,797 | 10,520 | |
Long-term debt | 8,319 | 7,575 | |
Other liabilities | 3,550 | 3,552 | |
Equity | |||
Common stockholders' equity | 20,282 | 20,277 | |
Noncontrolling interests in subsidiaries | 16 | 15 | |
Total equity | 20,298 | 20,292 | |
Total liabilities and equity | $ 41,964 | $ 41,939 | |
Table 3 | ||||
EMERSON AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(DOLLARS IN MILLIONS, UNAUDITED) | ||||
Three Months Ended Dec 31, | ||||
2024 | 2025 | |||
Operating activities | ||||
Net earnings | $ 593 | $ 606 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 383 | 359 | ||
Stock compensation | 68 | 55 | ||
Changes in operating working capital | (154) | (357) | ||
Other, net | (113) | 36 | ||
Cash provided by operating activities | 777 | 699 | ||
Investing activities | ||||
Capital expenditures | (83) | (97) | ||
Purchases of businesses, net of cash and equivalents acquired | (37) | — | ||
Other, net | (22) | (28) | ||
Cash used in investing activities | (142) | (125) | ||
Financing activities | ||||
Net increase (decrease) in short-term borrowings | 2 | (485) | ||
Proceeds from short-term borrowings greater than three months | — | 3,473 | ||
Payments of short-term borrowings greater than three months | — | (2,099) | ||
Payments of long-term debt | (2) | (587) | ||
Dividends paid | (301) | (312) | ||
Purchases of common stock | (899) | (250) | ||
Other, net | (91) | (104) | ||
Cash used in financing activities | (1,291) | (364) | ||
Effect of exchange rate changes on cash and equivalents | (98) | (6) | ||
Increase (decrease) in cash and equivalents | (754) | 204 | ||
Beginning cash and equivalents | 3,588 | 1,544 | ||
Ending cash and equivalents | $ 2,834 | $ 1,748 | ||
Table 4 | ||||||||
EMERSON AND SUBSIDIARIES | ||||||||
SEGMENT SALES AND EARNINGS | ||||||||
(DOLLARS IN MILLIONS, UNAUDITED) | ||||||||
The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to | ||||||||
Quarter Ended Dec 31, | ||||||||
2024 | 2025 | Reported | Underlying | |||||
Sales | ||||||||
Control Systems & Software | $ 1,023 | $ 1,044 | 2 % | — % | ||||
Test & Measurement | 359 | 409 | 14 % | 11 % | ||||
Software & Systems | $ 1,382 | $ 1,453 | 5 % | 3 % | ||||
Sensors | 972 | 996 | 2 % | 1 % | ||||
Final Control | 1,334 | 1,394 | 4 % | 2 % | ||||
Intelligent Devices | $ 2,306 | $ 2,390 | 4 % | 2 % | ||||
Safety & Productivity | $ 487 | $ 503 | 3 % | 1 % | ||||
Total | $ 4,175 | $ 4,346 | 4 % | 2 % | ||||
Sales Growth by Geography | ||||||||
Quarter Ended | ||||||||
Americas | 3 % | |||||||
Europe | 3 % | |||||||
Asia, Middle East & Africa | — % | |||||||
Table 4 cont. | |||||||
Quarter Ended Dec 31, | Quarter Ended Dec 31, | ||||||
2024 | 2025 | ||||||
As Reported | Adjusted | As | Adjusted | ||||
Earnings | |||||||
Control Systems & Software | $ 208 | $ 337 | $ 232 | $ 334 | |||
Margins | 20.3 % | 33.0 % | 22.2 % | 31.9 % | |||
Test & Measurement | (13) | 91 | 14 | 121 | |||
Margins | (3.6) % | 25.5 % | 3.6 % | 29.7 % | |||
Software & Systems | $ 195 | $ 428 | $ 246 | $ 455 | |||
Margins | 14.1 % | 31.1 % | 17.0 % | 31.3 % | |||
Sensors | 285 | 296 | 266 | 282 | |||
Margins | 29.3 % | 30.5 % | 26.7 % | 28.3 % | |||
Final Control | 305 | 341 | 331 | 361 | |||
Margins | 22.9 % | 25.5 % | 23.8 % | 25.9 % | |||
Intelligent Devices | $ 590 | $ 637 | $ 597 | $ 643 | |||
Margins | 25.6 % | 27.6 % | 25.0 % | 26.9 % | |||
Safety & Productivity | $ 96 | $ 104 | $ 97 | $ 105 | |||
Margins | 19.7 % | 21.3 % | 19.2 % | 20.9 % | |||
Corporate items and interest expense, net: | |||||||
Stock compensation | (68) | (66) | (55) | (51) | |||
Unallocated pension and postretirement costs | 27 | 27 | 29 | 29 | |||
Corporate and other | (57) | (34) | (49) | (40) | |||
Interest expense, net | (8) | — | (90) | — | |||
Pretax Earnings / Adjusted EBITA | $ 775 | $ 1,096 | $ 775 | $ 1,141 | |||
Margins | 18.6 % | 26.3 % | 17.8 % | 26.3 % | |||
Supplemental Total Segment Earnings: | |||||||
Adjusted Total Segment EBITA | $ 1,169 | $ 1,203 | |||||
Margins | 28.0 % | 27.7 % | |||||
Table 4 cont. | ||||||||
Quarter Ended Dec 31, | Quarter Ended Dec 31, | |||||||
2024 | 2025 | |||||||
Amortization of Intangibles1 | Restructuring and Related Costs2 | Amortization of Intangibles1 | Restructuring and Related Costs2 | |||||
Control Systems & Software | $ 127 | $ 2 | $ 101 | $ 1 | ||||
Test & Measurement | 105 | (1) | 107 | — | ||||
Software & Systems | $ 232 | $ 1 | $ 208 | $ 1 | ||||
Sensors | 10 | 1 | 11 | 5 | ||||
Final Control | 29 | 7 | 28 | 2 | ||||
Intelligent Devices | $ 39 | $ 8 | $ 39 | $ 7 | ||||
Safety & Productivity | $ 7 | $ 1 | $ 7 | $ 1 | ||||
Corporate | — | 3 | — | 2 | ||||
Total | $ 278 | $ 13 | $ 254 | $ 11 | ||||
1 Amortization of intangibles includes $49 reported in cost of sales for the three months ended December 31, 2024 and 2025. | ||||||||
2 Restructuring and related costs includes $2 reported in selling, general and administrative expenses for the three months ended December 31, 2024 and 2025. |
Quarter Ended Dec 31, | |||
Depreciation and Amortization | 2024 | 2025 | |
Control Systems & Software | $ 149 | $ 122 | |
Test & Measurement | 118 | 119 | |
Software & Systems | 267 | 241 | |
Sensors | 31 | 33 | |
Final Control | 55 | 56 | |
Intelligent Devices | 86 | 89 | |
Safety & Productivity | 19 | 19 | |
Corporate | 11 | 10 | |
Total | $ 383 | $ 359 | |
Table 5 | ||||||||
EMERSON AND SUBSIDIARIES | ||||||||
ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL | ||||||||
(DOLLARS IN MILLIONS, UNAUDITED) | ||||||||
The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis. | ||||||||
Quarter Ended Dec 31, | ||||||||
2024 | 2025 | |||||||
Stock compensation (GAAP) | $ (68) | $ (55) | ||||||
Integration-related stock compensation expense | 2 | 4 | ||||||
Adjusted stock compensation (non-GAAP) | $ (66) | $ (51) | ||||||
Quarter Ended Dec 31, | ||||||||
2024 | 2025 | |||||||
Corporate and other (GAAP) | $ (57) | $ (49) | ||||||
Corporate restructuring and related costs | 3 | 2 | ||||||
Acquisition / divestiture costs | 20 | 7 | ||||||
Adjusted corporate and other (non-GAAP) | $ (34) | $ (40) | ||||||
Table 6 | |||
EMERSON AND SUBSIDIARIES | |||
ADJUSTED EBITA & EPS SUPPLEMENTAL | |||
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) | |||
The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, | |||
Quarter Ended Dec 31, | |||
2024 | 2025 | ||
Pretax earnings | $ 775 | $ 775 | |
Percent of sales | 18.6 % | 17.8 % | |
Interest expense, net | 8 | 90 | |
Amortization of intangibles | 278 | 254 | |
Restructuring and related costs | 13 | 11 | |
Acquisition/divestiture fees and related costs | 22 | 11 | |
Adjusted EBITA | $ 1,096 | $ 1,141 | |
Percent of sales | 26.3 % | 26.3 % | |
Quarter Ended Dec 31, | |||
2024 | 2025 | ||
GAAP earnings per share | $ 1.02 | $ 1.07 | |
Amortization of intangibles | 0.31 | 0.35 | |
Restructuring and related costs | 0.02 | 0.02 | |
Acquisition/divestiture fees and related costs | 0.03 | 0.01 | |
Discrete taxes | — | 0.01 | |
Adjusted earnings per share | $ 1.38 | $ 1.46 | |
Table 6 cont. | |||||||||||
Quarter Ended December 31, 2025 | |||||||||||
Pretax | Income | Net | Non- Interests | Net | Diluted | ||||||
As reported (GAAP) | $ 775 | $ 169 | $ 606 | $ 1 | $ 605 | $ 1.07 | |||||
Amortization of intangibles | 254 | 1 | 59 | 195 | — | 195 | 0.35 | ||||
Restructuring and related costs | 11 | 2 | 3 | 8 | — | 8 | 0.02 | ||||
Acquisition/divestiture fees and related costs | 11 | 2 | 9 | — | 9 | 0.01 | |||||
Discrete Taxes | — | (5) | 5 | — | 5 | 0.01 | |||||
Adjusted (non-GAAP) | $ 1,051 | $ 228 | $ 823 | $ 1 | $ 822 | $ 1.46 | |||||
Interest expense, net | 90 | ||||||||||
Adjusted EBITA (non-GAAP) | $ 1,141 | ||||||||||
1 Amortization of intangibles includes $49 reported in cost of sales. | |||||||||||
2 Restructuring and related costs includes $2 reported in selling, general and administrative expenses. | |||||||||||
Reconciliations of Non-GAAP Financial Measures & Other | Table 8 | ||||||
Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, | |||||||
2026 Q1 Underlying Sales Change | Reported | (Favorable) / | (Acquisitions) / | Underlying | |||
Control Systems & Software | 2 % | (2) % | — % | — % | |||
Test & Measurement | 14 % | (3) % | — % | 11 % | |||
Software & Systems | 5 % | (2) % | — % | 3 % | |||
Sensors | 2 % | (1) % | — % | 1 % | |||
Final Control | 4 % | (2) % | — % | 2 % | |||
Intelligent Devices | 4 % | (2) % | — % | 2 % | |||
Safety and Productivity | 3 % | (2) % | — % | 1 % | |||
Emerson | 4 % | (2) % | — % | 2 % | |||
Underlying Growth Guidance | 2026 Q2 | 2026 Guidance |
Reported (GAAP) | 3% - 4% | ~5.5% |
(Favorable) / Unfavorable FX | ~(2 pts) | ~(1.5 pts) |
(Acquisitions) / Divestitures | - | - |
Underlying (non-GAAP) | 1% - 2% | ~4% |
2025 Q1 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization of Intangibles | Restructuring | Adjusted | Adjusted |
Control Systems & Software | $ 208 | 20.3 % | $ 127 | $ 2 | $ 337 | 33.0 % |
Test & Measurement | (13) | (3.6) % | 105 | (1) | 91 | 25.5 % |
Software & Systems | $ 195 | 14.1 % | $ 232 | $ 1 | $ 428 | 31.1 % |
Sensors | 285 | 29.3 % | 10 | 1 | 296 | 30.5 % |
Final Control | 305 | 22.9 % | 29 | 7 | 341 | 25.5 % |
Intelligent Devices | $ 590 | 25.6 % | $ 39 | $ 8 | $ 637 | 27.6 % |
Safety & Productivity | $ 96 | 19.7 % | $ 7 | $ 1 | $ 104 | 21.3 % |
2026 Q1 Adjusted Segment EBITA | EBIT | EBIT Margin | Amortization | Restructuring | Adjusted | Adjusted |
Control Systems & Software | $ 232 | 22.2 % | $ 101 | $ 1 | $ 334 | 31.9 % |
Test & Measurement | 14 | 3.6 % | 107 | — | 121 | 29.7 % |
Software & Systems | $ 246 | 17.0 % | $ 208 | $ 1 | $ 455 | 31.3 % |
Sensors | 266 | 26.7 % | 11 | 5 | 282 | 28.3 % |
Final Control | 331 | 23.8 % | 28 | 2 | 361 | 25.9 % |
Intelligent Devices | $ 597 | 25.0 % | $ 39 | $ 7 | $ 643 | 26.9 % |
Safety & Productivity | $ 97 | 19.2 % | $ 7 | $ 1 | $ 105 | 20.9 % |
Total Adjusted Segment EBITA | 2025 Q1 | 2026 Q1 | ||||
Pretax earnings (GAAP) | $ 775 | $ 775 | ||||
Margin | 18.6 % | 17.8 % | ||||
Corporate items and interest expense, net | 106 | 165 | ||||
Amortization of intangibles | 278 | 254 | ||||
Restructuring and related costs | 10 | 9 | ||||
Adjusted segment EBITA (non-GAAP) | $ 1,169 | $ 1,203 | ||||
Margin | 28.0 % | 27.7 % | ||||
Free Cash Flow | 2025 Q1 | 2026 Q1 | 2026E ($ in billions) | |||
Operating cash flow (GAAP) | $ 777 | $ 699 | $4.0 - $4.1 | |||
Capital expenditures | (83) | (97) | ~(0.45) | |||
Free cash flow (non-GAAP) | $ 694 | $ 602 | $3.5 - $3.6 | |||
Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures. |
Note 2: All fiscal year 2026E figures are approximate, except where range is given. |
SOURCE Emerson
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