$EMR earnings report

This filing recasts Emerson's fiscal 2026 quarterly and nine-month results to reflect the adoption of mark-to-market accounting for defined benefit pension and other postretirement benefit plans. It does not provide a conventional earnings narrative, segment disclosure, management commentary or outlook. The reported third-quarter figures therefore establish revised historical comparatives rather than a new operational update.

Third-quarter net sales were $ 4,873, compared with $ 4,553 in fiscal 2025's third quarter and $ 4,562 in fiscal 2026's second quarter. Third-quarter earnings before income taxes were 918, compared with 737 a year earlier and 795 in the preceding quarter. Net earnings common stockholders were $ 720, versus $ 588 in the prior-year quarter and $ 620 in the second quarter. Diluted earnings per common share were $ 1.28, compared with $ 1.04 and $ 1.10, respectively.

The non-GAAP reconciliation reports third-quarter adjusted EBITA of $ 1,305 and adjusted EBITA percent of sales of 26.8 %, compared with $ 1,186 and 26.1 % in the fiscal 2025 third quarter, and $ 1,196 and 26.2 % in the fiscal 2026 second quarter. Adjusted earnings per share were $ 1.71, compared with $ 1.52 in the prior-year quarter and $ 1.55 in the preceding quarter. The quarter's adjustments include 253 of amortization of intangibles, 99 of restructuring and related costs, 32 of acquisition/divestiture fees and related costs, and IEEPA tariff refunds of (82).

For the nine months ended June 30, net sales were $ 13,781, earnings before income taxes were 2,492, net earnings common stockholders were $ 1,947, and diluted earnings per common share were $ 3.46. Adjusted EBITA was $ 3,647 at 26.5 % of sales, while adjusted earnings per share were $ 4.72. The filing does not print a fiscal 2025 nine-month comparison, so no year-over-year assessment of the nine-month period can be made from this document.

Capital allocation, liquidity and cash generation cannot be assessed from this filing because it contains no cash flow, cash, debt, dividend or repurchase disclosures. Similarly, the absence of segment and operating indicators means the reported sales and earnings changes cannot be attributed to demand, price, volume, mix or geography from the supplied document.

Emerson reported a strong third quarter ended June 30, 2026. Net sales were $4,873 million, up 7%, while underlying sales increased 6% and underlying orders increased 7%. Management identified Software & Systems and broad-based growth in North America and Asia as demand drivers. Sales growth was strongest in Test & Measurement at 23% and Software & Systems at 11%, while Europe sales growth was (1)%.

Profitability improved materially. Pretax earnings were $916 million and pretax earnings margin was 18.8%, compared with $734 million and 16.1%. Adjusted segment EBITA increased to $1,387 million from $1,232 million, and adjusted segment EBITA margin expanded to 28.5% from 27.1%. GAAP earnings per share from continuing operations were $1.28, while adjusted earnings per share were $1.71.

Cash generation also improved in the quarter, with operating cash flow of $1,425 million and free cash flow of $1,323 million. For the nine months ended June 30, 2026, cash provided by operating activities was $2,902 million and capital expenditures were $284 million. Cash and equivalents were $2,180 million at June 30, 2026. The company expects to pivot capital allocation toward shareholder returns, with its fiscal 2026 outlook assuming ~$2.2B returned through ~$1B of share repurchases and ~$1.2B of dividends.

Management raised fiscal 2026 guidance. The company expects ~5% net sales growth and ~3.5% underlying sales growth for 2026, adjusted earnings per share of ~$6.55, operating cash flow of ~$4.1B, and free cash flow of ~$3.6B. For 2026 Q4, the outlook calls for ~5% net sales growth, ~5% underlying sales growth, earnings per share of ~$1.45, and adjusted earnings per share of ~$1.85.

The principal reported areas requiring attention are Europe, where third-quarter sales declined (1)%, the fluid Middle East conflict, and the impact of tariffs. The full-year outlook includes ~($0.11) of IEEPA tariff refunds. Delivery against the Q4 growth, EPS, cash-flow, and capital-return framework will determine whether the third-quarter operating momentum is sustained through fiscal year-end.