(dollars in millions, except per share)
2025 Q2
2026 Q2
Change
Underlying Orders1
5 %
Net Sales
$4,432
$4,562
3 %
Underlying Sales2
0.5 %
Pretax Earnings
$629
$793
Margin
14.2 %
17.4 %
320 bps
Adjusted Segment EBITA3
$1,240
$1,258
Margin
28.0 %
27.6 %
(40) bps
GAAP Earnings Per Share
$0.86
$1.10
28 %
Adjusted Earnings Per Share4
$1.48
$1.54
4 %
Operating Cash Flow
$825
$779
(6) %
Free Cash Flow
$738
$694
(6) %
Management Commentary
"Emerson's second quarter results reflect our ability to deliver in a dynamic environment," said Emerson President and Chief Executive Officer Lal Karsanbhai. "While sales were impacted by the conflict in the Middle East, margins exceeded expectations, and we achieved strong adjusted earnings per share. Underlying orders were up 5% as we continue to see resilient demand, led by Software & Systems, with sustained momentum in our growth verticals."
Karsanbhai continued, "I want to thank our employees and customers in the Middle East for their unwavering commitment and resiliency. As we look ahead, 2026 continues to develop largely as expected with a strong second half, supported by orders momentum and a robust backlog."
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.
Guidance figures are approximate.
2026 Q3
2026
Net Sales Growth
~5.5%
~4.5%
Underlying Sales Growth
~5%
~3%
Earnings Per Share
$1.22 - $1.27
$4.79 - $4.89
Amortization of intangibles
~$0.34
~$1.38
Restructuring and related costs
~$0.06
~$0.18
Acquisition/divestiture fees and related costs
~$0.02
~$0.06
Discrete taxes
~$0.01
~$0.04
Adjusted Earnings Per Share
$1.65 - $1.70
$6.45 - $6.55
Operating Cash Flow
$4.0B - $4.1B
Free Cash Flow
$3.5B - $3.6B
1 Underlying orders do not include AspenTech.
2 Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.
3 Adjusted segment EBITA represents segment earnings excluding 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 second 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, Middle East 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 March 31,
Six Months Ended March 31,
2025
2026
2025
2026
Net sales
$ 4,432
$ 4,562
$ 8,608
$ 8,908
Cost of sales
2,061
2,140
4,002
4,174
SG&A expenses
1,283
1,316
2,506
2,559
Other deductions, net
418
229
646
434
Interest expense, net
41
84
50
173
Earnings before income taxes
629
793
1,404
1,568
Income taxes
199
175
382
344
Net earnings
430
618
1,022
1,224
Less: Noncontrolling interests in subsidiaries
(55)
—
(48)
1
Net earnings common stockholders
$ 485
$ 618
$ 1,070
$ 1,223
Diluted avg. shares outstanding
565.4
563.0
568.2
563.5
Diluted earnings per share common stockholders
Diluted earnings per common share
$ 0.86
$ 1.10
$ 1.88
$ 2.17
Quarter Ended March 31,
Six Months Ended March 31,
2025
2026
2025
2026
Other deductions, net
Amortization of intangibles
$ 229
$ 205
$ 457
$ 409
Restructuring costs
21
45
32
53
Other
168
(21)
157
(28)
Total
$ 418
$ 229
$ 646
$ 434
Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Sept 30, 2025
March 31, 2026
Assets
Cash and equivalents
$ 1,544
$ 1,791
Receivables, net
3,101
3,158
Inventories
2,213
2,452
Other current assets
1,725
1,850
Total current assets
8,583
9,251
Property, plant & equipment, net
2,871
2,850
Goodwill
18,193
18,153
Other intangible assets
9,458
8,954
Other
2,859
2,880
Total assets
$ 41,964
$ 42,088
Liabilities and equity
Short-term borrowings and current maturities of long-term debt
$ 4,797
$ 5,804
Accounts payable
1,384
1,468
Accrued expenses
3,616
3,382
Total current liabilities
9,797
10,654
Long-term debt
8,319
7,555
Other liabilities
3,550
3,560
Equity
Common stockholders' equity
20,282
20,303
Noncontrolling interests in subsidiaries
16
16
Total equity
20,298
20,319
Total liabilities and equity
$ 41,964
$ 42,088
Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Six Months Ended March 31,
2025
2026
Operating activities
Net earnings
$ 1,022
$ 1,224
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
767
728
Stock compensation
127
113
Changes in operating working capital
(203)
(613)
Other, net
(110)
26
Cash from continuing operations
1,603
1,478
Cash from discontinued operations
(585)
—
Cash provided by operating activities
1,018
1,478
Investing activities
Capital expenditures
(170)
(182)
Purchases of businesses, net of cash and equivalents acquired
(36)
—
Other, net
(58)
(24)
Cash used in investing activities
(264)
(206)
Financing activities
Net increase in short-term borrowings
2,628
2,027
Proceeds from short-term borrowings greater than three months
2,496
4,447
Payments of short-term borrowings greater than three months
—
(5,611)
Proceeds from long-term debt
1,544
—
Payments of long-term debt
(2)
