Emerson Reports Fourth Quarter and Full Year 2026 Results
EMERSON ELECTRIC CO (EMR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Emerson Reports Fourth Quarter and Full Year 2026 Results; Provides Initial 2027 Outlook ST. LOUIS (November 4, 2026) - Emerson (NYSE: EMR) today reported results 1 for its fourth quarter and fiscal year ended September 30, 2026. Emerson also declared a 7% quarterly cash dividend
How this was made
The 30-second read
Why it matters
The earnings beat and issued guidance suggest near‑term upside, but investors should monitor macro‑economic conditions and currency impacts.
Market read
Strong earnings and guidance may lift Emerson and peers in the automation sector.
What to watch
Potential headwinds from currency volatility and geopolitical risks mentioned in the filing could temper upside.
Emerson Reports Fourth Quarter and Full Year 2026 Results; Provides Initial 2027 Outlook
Fourth-quarter and full-year sales, earnings, margins, cash flow and adjusted EPS increased versus the corresponding 2025 periods, while the company initiated 2027 growth, earnings and cash-flow guidance and outlined approximately $3.8B of planned capital returns.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 2026 net salesGAAP | $5.20B | – | 7% |
| FY 2026 net salesGAAP | $18.98B | – | 5% |
| Q4 2026 underlying ordersother | 14% | – | 14% |
| FY 2026 underlying ordersother | 9% | – | 9% |
| Q4 2026 underlying salesnon-GAAP | 7% | – | 7% |
| FY 2026 underlying salesnon-GAAP | 4% | – | 4% |
| Q4 2026 pretax earningsGAAP | $997M | – | – |
| Q4 2026 pretax earnings marginGAAP | 19.2% | – | 360 bps |
| FY 2026 pretax earningsGAAP | $3.49B | – | – |
| FY 2026 pretax earnings marginGAAP | 18.4% | – | 230 bps |
| Q4 2026 adjusted EBITAnon-GAAP | $1.41B | – | – |
| Q4 2026 adjusted EBITA marginnon-GAAP | 27.1% | – | – |
| FY 2026 adjusted EBITAnon-GAAP | $5.05B | – | – |
| FY 2026 adjusted EBITA marginnon-GAAP | 26.6% | – | – |
| Q4 2026 adjusted segment EBITAnon-GAAP | $1.51B | – | – |
| Q4 2026 adjusted segment EBITA marginnon-GAAP | 29.1% | – | 160 bps |
| FY 2026 adjusted segment EBITAnon-GAAP | $5.36B | – | – |
| FY 2026 adjusted segment EBITA marginnon-GAAP | 28.2% | – | 60 bps |
| Q4 2026 earnings from continuing operationsGAAP | $744M | – | – |
| FY 2026 earnings from continuing operationsGAAP | $2.69B | – | – |
| Q4 2026 net earningsGAAP | $744M | – | – |
| FY 2026 net earningsGAAP | $2.69B | – | – |
| Q4 2026 net earnings common stockholdersGAAP | $744M | – | – |
| FY 2026 net earnings common stockholdersGAAP | $2.69B | – | – |
| Q4 2026 GAAP earnings from continuing operations per shareGAAP | $1.33 | – | 24% |
| FY 2026 GAAP earnings from continuing operations per shareGAAP | $4.79 | – | 20% |
| Q4 2026 adjusted earnings from continuing operations per sharenon-GAAP | $1.86 | – | 15% |
| FY 2026 adjusted earnings from continuing operations per sharenon-GAAP | $6.59 | – | 10% |
| Q4 2026 operating cash flowGAAP | $1.07B | – | 6% |
| FY 2026 cash from continuing operationsGAAP | $3.98B | – | 8% |
| Q4 2026 free cash flownon-GAAP | $916M | – | 9% |
| FY 2026 free cash flownon-GAAP | $3.54B | – | 9% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q4 2026 Control Systems & SoftwareReported sales growth was 14%; underlying sales growth was 14%. | $1.25B | – | 14% |
| Q4 2026 Test & MeasurementReported sales growth was 14%; underlying sales growth was 15%. | $465M | – | 14% |
| Q4 2026 Software & SystemsReported sales growth was 14%; underlying sales growth was 14%. | $1.71B | – | 14% |
| Q4 2026 SensorsReported sales growth was 4%; underlying sales growth was 3%. | $1.19B | – | 4% |
| Q4 2026 Final ControlReported sales growth was 5%; underlying sales growth was 5%. | $1.73B | – | 5% |
| Q4 2026 Intelligent DevicesReported sales growth was 5%; underlying sales growth was 4%. | $2.92B | – | 5% |
| Q4 2026 Safety & ProductivityReported sales growth was 2%; underlying sales growth was 2%. | $573M | – | 2% |
| FY 2026 Control Systems & SoftwareReported sales growth was 6%; underlying sales growth was 5%. | $4.58B | – | 6% |
| FY 2026 Test & MeasurementReported sales growth was 17%; underlying sales growth was 15%. | $1.73B | – | 17% |
| FY 2026 Software & SystemsReported sales growth was 8%; underlying sales growth was 7%. | $6.31B | – | 8% |
| FY 2026 SensorsReported sales growth was 4%; underlying sales growth was 3%. | $4.30B | – | 4% |
| FY 2026 Final ControlReported sales growth was 4%; underlying sales growth was 2%. | $6.19B | – | 4% |
| FY 2026 Intelligent DevicesReported sales growth was 4%; underlying sales growth was 3%. | $10.50B | – | 4% |
| FY 2026 Safety & ProductivityReported sales growth was 3%; underlying sales growth was 2%. | $2.17B | – | 3% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
2027 Q1 and 2027 outlook
- Revenue2027 Q1 net sales growth ~5%; 2027 net sales growth ~5%
- Note2027 Q1 underlying sales growth ~5%; 2027 underlying sales growth ~5%
- Note2027 Q1 earnings per share $1.19 - $1.23; 2027 earnings per share ~$5.70
- Note2027 Q1 amortization of intangibles ~$0.35; 2027 amortization of intangibles ~$1.41
- Note2027 Q1 restructuring and related costs ~$0.04; 2027 restructuring and related costs ~$0.14
- Note2027 Q1 adjusted earnings per share $1.58 - $1.62; 2027 adjusted earnings per share ~$7.25
- Note2027 operating cash flow $4.3B - $4.4B
- Note2027 free cash flow $3.8B - $3.9B
- Note2027 Q1 share repurchase ~$1.5B; 2027 share repurchase ~$2.5B
Capital returns
- Emerson 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.
- FY 2026 dividends paid were $(1,244).
- FY 2026 purchases of common stock were $(1,000).
- The 2027 guidance framework assumes returning ~$3.8B through ~$2.5B of share repurchases and ~$1.3B of dividends.
- 2027 Q1 share repurchase guidance is ~$1.5B; 2027 share repurchase guidance is ~$2.5B.
What drove it
- Management said underlying orders were up 14%, supported by exceptional long-cycle project activity in growth verticals.
- Management said demand was broad-based, with substantial growth across all business groups and regions.
- Q4 sales growth by geography was 9% in the Americas, 1% in Europe and 7% in Asia, Middle East & Africa.
- FY 2026 sales growth by geography was 7% in the Americas, (1)% in Europe and 3% in Asia, Middle East & Africa.
- Q4 Software & Systems reported sales increased 14%, including 14% in Control Systems & Software and 14% in Test & Measurement.
- FY 2026 Test & Measurement reported sales increased 17%, the fastest reported growth among the listed businesses.
Concerns
- FY 2026 Europe sales growth was (1)%.
- FY 2026 interest expense, net was $334, versus $237.
- FY 2026 restructuring and related costs were $227, versus $162.
- FY 2026 changes in operating working capital were $(338), versus $(9).
- 2027 guidance figures are approximate.
What to watch
- Delivery against 2027 net sales growth guidance of ~5% and underlying sales growth guidance of ~5%.
- Delivery against 2027 adjusted earnings per share guidance of ~$7.25 and earnings per share guidance of ~$5.70.
- Conversion to 2027 operating cash flow of $4.3B - $4.4B and free cash flow of $3.8B - $3.9B.
- Execution of planned returns of ~$3.8B, including ~$2.5B of share repurchases and ~$1.3B of dividends.
- Whether robust backlog and favorable demand trends in growth verticals continue, as cited by management.
Balance sheet and cash flow
- Cash and equivalents were $1,806 at September 30, 2026, versus $1,544 at September 30, 2025.
- Short-term borrowings and current maturities of long-term debt were $4,667, versus $4,797.
- Long-term debt was $7,508, versus $8,319.
- FY 2026 cash provided by operating activities was $3,978, versus $3,098.
- FY 2026 capital expenditures were $(443), versus $(431).
- FY 2026 cash used in investing activities was $(455), versus $(593).
- FY 2026 cash used in financing activities was $(3,222), versus $(4,510).
- FY 2026 ending cash and equivalents were $1,806, versus $1,544.
Analysis
Emerson closed fiscal 2026 with Q4 net sales of $5,201, up 7% from $4,855, and underlying sales growth of 7%. Underlying orders increased 14%. Management attributed order performance to exceptional long-cycle project activity in growth verticals and described demand as broad-based across business groups and regions. Software & Systems posted 14% reported sales growth in the quarter, while Intelligent Devices grew 5% and Safety & Productivity grew 2%.
Profitability improved materially in Q4. GAAP pretax earnings were $997 with a 19.2% margin, versus $760 and 15.6%. Adjusted EBITA was $1,408 with a 27.1% margin, versus $1,269 and 26.1%, while adjusted segment EBITA rose to $1,511 and its margin expanded to 29.1% from 27.5%. GAAP earnings from continuing operations per share increased to $1.33 from $1.07, and adjusted earnings from continuing operations per share increased to $1.86 from $1.62.
For the full year, net sales reached $18,982, up 5%, with 4% underlying sales growth. FY 2026 pretax earnings increased to $3,489 from $2,905 and the pretax margin increased to 18.4% from 16.1%. Adjusted segment EBITA increased to $5,360 from $4,975, though its margin improvement was 60 bps to 28.2%. Test & Measurement was the fastest-growing listed business for the year, with 17% reported sales growth, while Europe sales growth was (1)%.
Cash generation also increased. Cash from continuing operations was $3,978, versus $3,676, and free cash flow was $3,535, versus $3,245. Emerson ended the year with $1,806 of cash and equivalents, $4,667 of short-term borrowings and current maturities of long-term debt, and $7,508 of long-term debt. The company paid $(1,244) in dividends and purchased $(1,000) of common stock during FY 2026.
The initial 2027 framework calls for ~5% net sales growth and ~5% underlying sales growth, ~$5.70 of earnings per share, ~$7.25 of adjusted earnings per share, $4.3B - $4.4B of operating cash flow and $3.8B - $3.9B of free cash flow. The framework assumes returning ~$3.8B through ~$2.5B of share repurchases and ~$1.3B of dividends. First-quarter guidance includes $1.19 - $1.23 of earnings per share, $1.58 - $1.62 of adjusted earnings per share and ~$1.5B of share repurchases.
Management, verbatim
Emerson capped a strong 2026 with fourth quarter sales and profitability exceeding expectations.
Lal Karsanbhai, President and Chief Executive Officer
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.
Lal Karsanbhai, President and Chief Executive Officer
We have confidence in our 2027 plans given our robust backlog and favorable demand trends in our growth verticals.
Lal Karsanbhai, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported as a consolidated line item.
- Prior-quarter comparisons were not reported for the listed key metrics.
- A prior outlook section was not provided, so comparison of actual results with prior guidance is unavailable.
- 2027 gross margin, operating-expense and tax-rate guidance were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Emerson (NYSE: EMR) filed an 8‑K reporting its Q4 and FY 2026 financials and 2027 outlook.
Ticker impact
Emerson reported Q4 and full-year 2026 results with higher sales, earnings and issued 2027 guidance.
likely upward pressure as investors price in stronger earnings and optimistic outlook
Revenue and EPS both rose year‑over‑year, margins expanded, and the company announced a dividend increase and solid 2027 outlook, which typically supports the stock.
Market effects
Automation and industrial software sector may see broader buying on Emerson's strong results.
U.S. industrial stocks could benefit from the upbeat earnings.
Limited to industrial automation niche, no major global market shift.
Counterpoint
If the market has already priced in the strong results, any miss on future guidance could trigger a pullback.
Key entities
- personLal Karsanbhai
President and CEO of Emerson who provided the commentary.
