Emerson reported results for its first quarter ended December 31, 2025 and updated its full year outlook for fiscal 2026. Emerson also declared a quarterly cash dividend of $0.555 per share of common stock payable March 10, 2026 to stockholders of record on February 13, 2026.
|
(dollars in millions, except per share) |
2025 Q1 |
2026 Q1 |
Change |
|
Underlying Orders1 |
9 % |
||
|
Net Sales |
$4,175 |
$4,346 |
4 % |
|
Underlying Sales2 |
2 % |
||
|
Pretax Earnings |
$775 |
$775 |
|
|
Margin |
18.6 % |
17.8 % |
(80) bps |
|
Adjusted Segment EBITA3 |
$1,169 |
$1,203 |
|
|
Margin |
28.0 % |
27.7 % |
(30) bps |
|
GAAP Earnings Per Share |
$1.02 |
$1.07 |
5 % |
|
Adjusted Earnings Per Share4 |
$1.38 |
$1.46 |
6 % |
|
Operating Cash Flow |
$777 |
$699 |
(10) % |
|
Free Cash Flow |
$694 |
$602 |
(13) % |
Management Commentary
"Emerson met sales commitments and exceeded expectations for profitability as our global teams continue to execute well," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We delivered a fourth consecutive quarter of strong underlying orders growth, and we are experiencing robust demand for our automation technology, led by Software & Systems, with strength in North America, India and the Middle East & Africa."
Karsanbhai continued, "Emerson is accelerating innovation, introducing new products and delivering on the critical programs we highlighted at our 2025 investor conference. These releases advance our capabilities in software-defined automation and further enhance our leadership position in high-growth verticals."
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.
|
2026 Q2 |
2026 |
|
|
Net Sales Growth |
3% - 4% |
~5.5% |
|
Underlying Sales Growth |
1% - 2% |
~4% |
|
Earnings Per Share |
$1.06 - $1.11 |
$4.78 - $4.93 |
|
Amortization of intangibles |
~$0.35 |
~$1.38 |
|
Restructuring and related costs |
~$0.06 |
~$0.14 |
|
Acquisition/divestiture fees and related costs |
~$0.02 |
~$0.06 |
|
Discrete taxes |
~$0.01 |
~$0.04 |
|
Adjusted Earnings Per Share |
$1.50 - $1.55 |
$6.40 - $6.55 |
|
Operating Cash Flow |
$4.0B - $4.1B |
|
|
Free Cash Flow |
$3.5B - $3.6B |
|
|
Share Repurchase |
~$1.0B |
|
1 Underlying orders do not include AspenTech. |
|
2 Underlying sales exclude the impact of currency translation, and significant acquisitions and divestitures. |
|
3 Adjusted segment EBITA represents segment earnings less 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 first 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.
