(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)
