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Emerson Electric

EMR Q2 2026 Earnings

Reported May 5, 2026 at 4:06 PM ET · SEC Source

Q2 26 EPS

$1.54

BEAT +0.44%

Est. $1.53

Q2 26 Revenue

$4.56B

MISS 0.69%

Est. $4.59B

vs S&P Since Q2 26

+4.8%

BEATING MARKET

EMR +5.9% vs S&P +1.1%

Market Reaction

Did EMR Beat Earnings? Q2 2026 Results

Emerson Electric delivered a mixed but broadly solid fiscal second quarter, posting adjusted EPS of $1.54 against a consensus estimate of $1.53, a 0.44% beat that extends the company's streak to four consecutive quarters of topping Wall Street's earn… Read more Emerson Electric delivered a mixed but broadly solid fiscal second quarter, posting adjusted EPS of $1.54 against a consensus estimate of $1.53, a 0.44% beat that extends the company's streak to four consecutive quarters of topping Wall Street's earnings expectations. Revenue of $4.56 billion grew 2.9% year over year, though it landed slightly below the $4.59 billion consensus, with geopolitical disruptions in the Middle East cited as a meaningful drag on sales. The margin story proved more compelling than the top line: pretax margin expanded 320 basis points to 17.4% and adjusted EBITA margin improved to 26.2%, reflecting the operational leverage Emerson has built as it repositions itself as an automation and industrial software specialist. Underlying orders grew 5%, led by the Software and Systems segment, with the company embedding AI capabilities across its NI test software platform to deepen its digital offerings. Emerson updated its fiscal 2026 outlook, guiding for full-year adjusted EPS of $6.45 to $6.55 and net sales growth of approximately 4.5%, consistent with a recent Wall Street upgrade that had flagged the company's improving earnings trajectory.

Key Takeaways

  • • Underlying orders grew 5%, led by Software & Systems
  • • Margins exceeded expectations despite Middle East conflict headwinds
  • • Test & Measurement reported 16% sales growth (12% underlying)
  • • Pretax margin expanded 320 basis points year-over-year to 17.4%
  • • Sustained momentum in growth verticals
  • • Americas region grew 5%

EMR Forward Guidance & Outlook

Emerson updated its fiscal 2026 guidance, expecting full-year net sales growth of approximately 4.5% and underlying sales growth of approximately 3%. Full-year GAAP EPS is guided at $4.79–$4.89 and adjusted EPS at $6.45–$6.55. Full-year operating cash flow is expected at $4.0B–$4.1B and free cash flow at $3.5B–$3.6B. For Q3 2026, the company expects net sales growth of approximately 5.5%, underlying sales growth of approximately 5%, GAAP EPS of $1.22–$1.27, and adjusted EPS of $1.65–$1.70. Capital allocation is pivoting toward returning approximately $2.2B to shareholders through approximately $1B in share repurchases and approximately $1.2B in dividends.

24/7 Wall St

EMR YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

EMR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“Emerson's second quarter results reflect our ability to deliver in a dynamic environment. 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.”

— Lal Karsanbhai, Q2 2026 Earnings Press Release

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