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Emerson Electric — Feb 3, 2026 release

Fiscal 2026 first-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000032604-26-000006
Open on SEC.gov ↗
Showing in the filing
Capital Returned to Shareholders
“~$2.2B”
Period
FY2026
Measure
Company-defined measure
Source
Prose
All guidance in this release · 25
Quarterly cash dividend for FY2026
“$0.555 per share”
Capital Returned to Shareholders for FY2026
“~$2.2B”
Returning to shareholders for FY2026
“~$2.2B”
Share Repurchases (capital allocation) for FY2026
“~$1B”
Dividends (capital allocation) for FY2026
“~$1.2B”
Net Sales Growth for Q2 FY2026
“3% - 4%”
Net Sales Growth for FY2026
“~5.5%”
Underlying Sales Growth for Q2 FY2026
“1% - 2%”
Underlying Sales Growth for FY2026
“~4%”
Earnings Per Share for Q2 FY2026
“$1.06 - $1.11”
Earnings Per Share for FY2026
“$4.78 - $4.93”
Amortization of intangibles for Q2 FY2026
“~$0.35”
Amortization of intangibles for FY2026
“~$1.38”
Acquisition/divestiture fees and related costs for FY2026
“~$0.06”
Restructuring and related costs for Q2 FY2026
“~$0.06”
Restructuring and related costs for FY2026
“~$0.14”
Acquisition/divestiture fees and related costs for Q2 FY2026
“~$0.02”
Discrete taxes for Q2 FY2026
“~$0.01”
Discrete taxes for FY2026
“~$0.04”
Adjusted Earnings Per Share for Q2 FY2026
“$1.50 - $1.55”
Adjusted Earnings Per Share for FY2026
“$6.40 - $6.55”
Operating Cash Flow for FY2026
“$4.0B - $4.1B”
Free Cash Flow for FY2026
“$3.5B - $3.6B”
Share Repurchase for FY2026
“~$1.0B”
Capital expenditures for FY2026
“~(0.45)”
Exhibit 99.1 · full document
Emerson Reports First Quarter 2026 Results; Updates 2026 Outlook ST. LOUIS (February 3, 2026) - 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 Orders 1 9% Net Sales $4,175 $4,346 4% Underlying Sales 2 2% Pretax Earnings $775 $775 Margin 18.6% 17.8% (80) bps Adjusted Segment EBITA 3 $1,169 $1,203 Margin 28.0% 27.7% (30) bps GAAP Earnings Per Share $1.02 $1.07 5% Adjusted Earnings Per Share 4 $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. Page 2 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) Page 3 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   Page 4 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   Page 5 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   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 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 Dec 31, Americas 3  % Europe 3  % Asia, Middle East & Africa —  % Page 7 Table 4 cont. Quarter Ended Dec 31, Quarter Ended Dec 31, 2024 2025 As Reported (GAAP) Adjusted EBITA (Non-GAAP) As Reported (GAAP) Adjusted EBITA (Non-GAAP) 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   % Page 8 Table 4 cont. Quarter Ended Dec 31, Quarter Ended Dec 31, 2024 2025 Amortization of Intangibles 1 Restructuring and Related Costs 2 Amortization of Intangibles 1 Restructuring and Related Costs 2 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   Page 9 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 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) Page 10 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, 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, 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 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 Page 11 Table 6 cont. Quarter Ended December 31, 2025 Pretax Earnings Income Taxes Net Earnings Non-Controlling Interests Net Earnings Common Stockholders Diluted Earnings Per Share 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. Page 12 Reconciliations of Non-GAAP Financial Measures & Other Table 8 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 ad ditional non-GAAP reconciliations. 2026 Q1 Underlying Sales Change Reported (Favorable) / Unfavorable FX (Acquisitions) / Divestitures 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 Guidance 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 and Related Costs Adjusted Segment EBITA Adjusted Segment EBITA Margin 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 of Intangibles Restructuring and Related Costs Adjusted Segment EBITA Adjusted Segment EBITA Margin 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   % Page 13 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.
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.