Emerson Electric Q4 2026: Orders Surge 14%, 2027 Guidance Set at $7.25

Emerson Electric closed fiscal 2026 with a sixth consecutive quarter of beating analyst expectations, posting adjusted EPS of $1.86 against a consensus of $1.85 and revenue that topped expectations. Revenue grew 7.1% year over year, driven by broad-based strength across all business groups and regions, with the Americas leading the quarter.

Underlying orders jumped 14%, powered by exceptional long-cycle project activity in Emerson's key growth verticals. Control Systems and Software was a particular bright spot, with sales up 14% and adjusted segment EBITA margin expanding sharply from a year earlier. Test and Measurement also delivered 15% underlying sales growth and swung from a segment EBIT loss to a gain year over year.

Total adjusted segment EBITA for the quarter reached $1.51 billion, at a wider margin than the prior-year period. For the full fiscal year, adjusted EPS and free cash flow both expanded, giving management a strong financial foundation heading into 2027.

Looking ahead, Emerson guided fiscal 2027 adjusted EPS to approximately $7.25 on roughly 5% sales growth, with free cash flow projected to rise. Management also raised the quarterly dividend 7%, and the 2027 capital return plan calls for approximately $3.8 billion in total, split between share repurchases and dividends.

CEO Lal Karsanbhai said the company has "confidence in our 2027 plans given our robust backlog and favorable demand trends in our growth verticals," and described fourth-quarter demand as "broad-based, with substantial growth across all business groups and regions." The key variable to monitor is whether long-cycle project activity and automation demand continue translating into backlog conversion at the pace management is projecting.