Emerson Electric Company Stock Earnings Reports

Emerson reported a solid start to FY2026 with underlying orders up 9% (fourth consecutive quarter of strong order growth) and underlying sales up 2% (impacted ~1 point by a software contract renewal timing dynamic). Strength was broad-based, led by Software & Systems (Test & Measurement +11% orders; total SW&S orders +23%), Power (mid-teens expected growth; Ovation orders +74%), and regional momentum in North America, India and Middle East & Africa. Backlog rose to $7.9B (up 9%) with a book-to-bill of 1.13 and a funnel of $11.1B. Profitability beat expectations: adjusted segment EBITDA margin was 27.7% and adjusted EPS was $1.46 (up 6% y/y). ACV (annual contract value) grew 9% to $1.6B and Emerson reiterated full-year sales and margin guidance while raising the bottom and midpoint of adjusted EPS to $6.40–$6.55. Management reiterated 2028 targets (>$21B revenue, ~30% adjusted segment EBITDA margin, $8 adjusted EPS, 20% free cash flow margin) and a capital return plan of ~$10B cumulative cash to shareholders ($6B buybacks, $4B dividends). Key near-term headwind: a software contract renewal accounting timing (~$110–$120M revenue impact H1) depressing H1 margins and EPS by small amounts; excluding that dynamic, underlying growth and margin expansion are stronger. Strategic highlights include progress on AI-enabled offerings (Nigel.ai evolution), DeltaV v16 release, an NI 50th anniversary, recognition as Industrial IoT Company of the Year, and large project wins (1.7 GW data center on-site power, Port Arthur LNG phase 2, space/satellite test wins). Management expects second-quarter underlying sales growth of 1–2% (total sales +3–4%), Q2 adjusted EPS $1.50–$1.55, and full-year organic growth of ~4% (about 5% ex-software renewal dynamic) with second-half acceleration.