Emerson Electric Company
Q3 2026 Earnings
Market Reaction
Did EMR Beat Earnings? Q3 2026 Results
Emerson Electric posted a clean beat across the board in its fiscal third quarter ended June 30, 2026, extending its EPS consensus beat streak to five consecutive quarters as the industrial automation giant reported adjusted earnings of $1.71 per share, ahead of the $1.68 consensus by 1.97%, on revenue of $4.87 billion that topped estimates by 1.46% and grew 7.0% year over year. The primary engine behind the quarter was Emerson's Software & Systems segment, which delivered 11% underlying sales growth to $1.64 billion, with Test & Measurement alone surging 23% to $445.00 million, reflecting accelerating demand for automation and control infrastructure. Adjusted EBITA margins expanded to 26.7%, while free cash flow climbed 36% to $1.32 billion, giving management the confidence to raise its full-year fiscal 2026 adjusted EPS outlook to approximately $6.55 and guide fourth-quarter adjusted EPS to approximately $1.85, with analysts maintaining a broadly constructive stance on the stock heading into fiscal 2027.
- Underlying orders grew 7%, led by Software & Systems and broad-based growth in North America and Asia
- Software & Systems segment drove 11% sales growth with Test & Measurement up 23%
- Adjusted segment EBITA margin expanded 140 basis points to 28.5%
- Operating cash flow increased 34% to $1,425 million
- Pretax earnings margin expanded 270 basis points to 18.8%
“Emerson had an outstanding third quarter with sales, margin expansion, earnings and cash flow all exceeding expectations. Demand was robust, with underlying orders up 7%, led by Software & Systems and broad-based growth in North America and Asia. The conflict in the Middle East remains fluid, and I am proud of our team's ability to deliver results and support our customers around the world.”
Emerson Electric CEO, on the earnings call
Forward Guidance & Outlook
Emerson raised its full-year fiscal 2026 guidance. The company now expects net sales growth of approximately 5% and underlying sales growth of approximately 3.5%. Full-year adjusted EPS is guided to approximately $6.55, with GAAP EPS of approximately $4.89. Q4 2026 guidance calls for approximately 5% net and underlying sales growth, with adjusted EPS of approximately $1.85 and GAAP EPS of approximately $1.45. Full-year operating cash flow is expected at approximately $4.1 billion and free cash flow at approximately $3.6 billion. The company plans to return approximately $2.2 billion to shareholders through approximately $1 billion in share repurchases and approximately $1.2 billion in dividends.
EMR YoY Financials
EMR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.