Emerson Electric Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did EMR Beat Earnings? Q3 2025 Results
Emerson Electric delivered a mixed but largely solid fiscal third quarter, edging past earnings expectations while falling short on the top line as the industrial automation giant navigated a shifting demand landscape. Adjusted EPS of $1.52 beat the $1.51 consensus by 0.48%, growing 6% from the prior year's $1.43, while revenue of $4.55 billion came in 1.19% below estimates despite rising 4.0% year-over-year. The key driver behind the earnings strength was a dramatic improvement in profitability, with pretax earnings margin expanding 570 basis points to 16.1%, partly reflecting the absence of a $279 million loss on the Copeland note receivable that had burdened the year-ago quarter. The Intelligent Devices segment anchored the quarter with $3.13 billion in sales, while the Software and Control segment benefited from the fully completed AspenTech acquisition, with that unit's adjusted EBITA margin widening to 35.9%. Shares fell after management trimmed full-year sales growth guidance to approximately 3.5%, though the company raised its adjusted EPS outlook to approximately $6.00 and lifted free cash flow expectations to roughly $3.20 billion.
- Positive momentum in key end markets
- Strong underlying growth of 3% in the quarter
- Final Control segment led growth with 7% reported sales increase
- Control Systems & Software adjusted EBITA margin expanded to 35.9% from 33.3%
- Pretax earnings margin expanded 570 basis points year-over-year
- Reduced tariff expense exposure relative to prior expectations
“Emerson's solid third quarter results reflect our sustained momentum, delivering strong underlying growth, profitability and cash flow, which we expect to continue as we finish the fiscal year. We are experiencing positive momentum in key end markets, and our team's ability to execute in this dynamic environment demonstrates the resilience of our business model and our operational excellence.”
Emerson Electric CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2025, Emerson updated guidance to approximately 3.5% net and underlying sales growth, reflecting updated pricing expectations as tariff expense exposure has reduced. GAAP EPS is expected to be approximately $4.08. Adjusted EPS guidance was raised to approximately $6.00, an increase versus the previous midpoint. Operating cash flow and free cash flow expectations increased to approximately $3.6B and $3.2B, respectively. For Q4 2025, the company expects 5.5%-6.5% reported net sales growth, 5%-6% underlying sales growth, GAAP EPS of $1.13-$1.17, and adjusted EPS of $1.58-$1.62. The company expects to return approximately $2.3B to shareholders through $1.1B of share repurchases and approximately $1.2B of dividends.
EMR YoY Financials
EMR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.