EMR
IndustrialsEmerson Electric
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Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $22.1B | $23.8B | $20.1B | $21.0B | $24.2B | $24.4B | $24.7B | $17.7B | $16.2B | $14.5B | $15.3B | $17.4B | $18.4B | $16.8B | $18.2B | $19.6B | $15.2B | $17.5B | $18.0B | +3.0% |
| Gross Profit | $8.1B | $8.1B | $7.6B | $8.3B | $9.6B | $9.8B | $10.0B | $10.2B | $9.0B | $6.3B | $6.4B | $7.5B | $7.8B | $7.0B | $7.6B | $8.2B | $7.4B | $8.9B | $9.5B | +7.1% |
| Gross Margin | 36.4% | 34.0% | 37.6% | 39.6% | 39.5% | 40.0% | 40.3% | 57.3% | 55.7% | 43.1% | 42.0% | 42.9% | 42.5% | 41.8% | 41.5% | 41.7% | 49.0% | 50.8% | 52.8% | +2.0pp |
| Net Income | $2.1B | $2.4B | $1.7B | $2.2B | $2.5B | $2.0B | $2.0B | $2.1B | $2.7B | $1.6B | $1.5B | $2.2B | $2.3B | $2.0B | $2.3B | $3.2B | $13.2B | $2.0B | $2.3B | +16.5% |
| Net Margin | 9.7% | 10.2% | 8.6% | 10.3% | 10.2% | 8.1% | 8.1% | 12.1% | 16.7% | 11.3% | 9.9% | 12.7% | 12.6% | 11.7% | 12.6% | 16.5% | 87.2% | 11.3% | 12.7% | +1.5pp |
| Free Cash Flow | $2.3B | $2.6B | $2.6B | $2.8B | $2.6B | $2.4B | $3.0B | $2.9B | $1.8B | $2.4B | $1.4B | $2.3B | $2.4B | $2.5B | $3.0B | $2.4B | $274.0M | $2.9B | $2.7B | -8.4% |
| FCF Margin | 10.6% | 10.9% | 12.7% | 13.2% | 10.7% | 9.8% | 12.0% | 16.5% | 11.3% | 16.8% | 9.4% | 13.1% | 13.1% | 15.2% | 16.4% | 12.2% | 1.8% | 16.7% | 14.8% | -1.8pp |
| EPS (Diluted) | $2.66 | $3.06 | $2.27 | $2.84 | $3.27 | $2.67 | $2.76 | $3.03 | $3.99 | $2.52 | $2.35 | $3.46 | $3.71 | $3.24 | $3.82 | $5.41 | $22.88 | $3.43 | $4.04 | +17.8% |
1. THE BIG PICTURE
Emerson Electric is no longer a diversified industrial conglomerate; it has transformed into a "cohesive, higher growth, higher margin industrial technology portfolio" centered on automation (Competitive Position). By layering sophisticated software like AspenTech over its "intelligent devices," Emerson is positioning itself as the essential architect for global trends in decarbonization and digital manufacturing.
2. WHERE THE RISKS HIT HARDEST
Emerson’s "innovation engine," which focuses on disruptive measurement and software-defined systems, is threatened by the risk of failing to accurately anticipate demand for decarbonization technologies like carbon capture or hydrogen (Risks). If these innovations miss the mark, Emerson may fail to recoup its heavy research and development investments (Risks). Furthermore, its "global operational footprint"—where a majority of manufacturing occurs outside the U.S.—creates a direct tension with its ability to meet the "robust demand" cited in North America and India (Recent Results). Any geopolitical or labor disruption at these international sites could immediately jeopardize Emerson Electric's ability to deliver on its $4.3 billion quarterly sales commitments (10-Q).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company with best-in-class pricing power but significant overhead from its transformation. Emerson leads its peer group with a 52.8% gross margin, yet its net margin of 12.7% ranks fourth among six peers (Peer Benchmarking). This discrepancy suggests that while its "hardware-advantaged solutions" command premium prices, the costs of its aggressive pivot—including the integration of National Instruments and $2.8 billion in net debt—are currently weighing on bottom-line efficiency (XBRL). Recent quarterly sales growth of 4% is a slight acceleration over the TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter rate of 3.0%, driven largely by a 14% surge in Test & Measurement (10-Q). This suggests the portfolio shift is beginning to provide a structural tailwind. With short interest at a modest 3.0% of the float, market sentiment appears cautiously supportive of this transition (Supplemental Signals).
4. IS IT WORTH IT AT THIS PRICE?
At 19.7x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, the market is pricing in ~6.3% long-term growth (Computed Valuation). This valuation represents a modest discount to the peer median of 23.6x, which appears attractively valued given that Emerson’s 3.0% revenue growth outperforms larger peers like Honeywell (Peer Benchmarking). The market-implied growth rate of 6.5% is closely aligned with management’s updated 2026 outlook of 5.5% consolidated sales growth and 4% underlying growth (Recent Results). However, the sensitivity is high: if growth were to slow to a GDP-pace of 2.5%, the justified multiple would fall to 11.3x (Computed Valuation). The current price is only "right" if Emerson maintains its current momentum in "Software & Systems," which grew 5% last quarter (10-Q).
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if free cash flow falls below the projected $3.5 billion to $3.6 billion range, which would signal that the integration of National Instruments is becoming more expensive than anticipated (Recent Results).
- Constructive if the "Software & Systems" segment growth accelerates beyond 5%, proving that the "self-optimizing asset software" is gaining wider market adoption (Recent Results, Business).
- Cautious if operating margins contract toward the 20% peer average, suggesting the "Emerson Management System" is failing to offset rising costs in electronics and raw materials (Peer Benchmarking, Risks).
6. BOTTOM LINE
Structural Advantage: The integration of a software-defined technology stack with dominant, "hardware-advantaged" brands like Rosemount, Fisher, and ASCO. Bottom Line: Emerson is a high-margin automation leader trading at a modest discount to peers, offering a compelling entry point for those who believe in its software-centric transformation.
1. Top 5 Material Risks
- Competitive Pressures: Emerson Electric operates in highly competitive markets where performance, quality, and price dictate success. Competitors with greater financial resources or lower costs can force price reductions or cause a loss of market share, directly impacting sales and profit margins.
- Global Operational Footprint: A majority of manufacturing facilities are located outside the United States. These operations are susceptible to disruptions from labor strife, war, political unrest, and public health concerns, which can cause shipment delays and the loss of customers and revenue.
- Acquisition and Divestiture Strategy: Recent portfolio changes, including the acquisition of National Instruments and the purchase of remaining shares in AspenTech, have narrowed the business focus toward software and higher-growth markets. This strategy introduces risks related to integration, the realization of anticipated profitability, and increased vulnerability to changing market conditions.
- Technological Innovation: Emerson Electric must successfully anticipate shifts in demand driven by decarbonization and electrification. Failure to innovate in areas like battery storage, hydrogen use cases, or carbon capture could prevent Emerson Electric from recouping research and development investments.
- Supply Chain and Commodity Costs: Major raw material requirements include steel, electronics, and rare earth metals. Significant shortages or price increases for these inputs can increase operating costs and weaken the competitive position of products if Emerson Electric cannot effectively mitigate these costs through hedging or pricing adjustments.
2. Company-Specific Risks
- Cybersecurity and AI Integration: As Emerson Electric increasingly relies on artificial intelligence and connected products, it faces heightened risks of sophisticated cyberattacks. These incidents could lead to the theft of trade secrets, litigation, and significant remediation costs.
- Product Sophistication: Because Emerson Electric’s measurement, analytical, and process control systems are integrated into complex manufacturing environments, a catastrophic product failure could result in significant third-party claims and reputational damage.
- ESG Commitments: Emerson Electric has established net-zero ambitions and sustainability goals. Failure to meet these aspirational targets—or a shift in stakeholder expectations—could damage Emerson Electric's reputation and lead to private litigation or government enforcement actions.
- Key Personnel: Emerson Electric’s performance is dependent on the retention of management and key employees; failure to attract and develop this talent could negatively impact human capital goals and overall operating results.
3. Regulatory/Legal Risks
- Taxation: Emerson Electric is subject to complex, overlapping tax regimes, including global minimum tax proposals. Audits or changes in tax laws in the U.S. and non-U.S. jurisdictions could result in adjustments to tax liabilities and adversely affect financial results.
- Anti-Corruption Compliance: Due to its global footprint, Emerson Electric is subject to the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Improper conduct by employees or agents could lead to substantial civil or criminal penalties and damage Emerson Electric's reputation.
- Environmental Regulation: Emerson Electric faces uncertainty regarding climate change legislation. Stricter limits on greenhouse gas emissions or more prescriptive reporting requirements could impose significant operational restrictions and increase capital expenditures.
- Trade Policy: Changes in U.S. trade policy, including the application of tariffs and retaliatory measures, create a dynamic environment that can increase costs and disrupt supply chains.
4. Financial Impact Map
Competitive Pressures → Sales and Profit Margins → Potential loss of market share and downward pressure on pricing. Global Operational Footprint → Revenue and Cash Flows → Disruptions in non-U.S. facilities can cause shipment delays and loss of customers. Acquisition and Divestiture Strategy → Profitability and Growth Rates → Failure to integrate assets or achieve anticipated synergies may prevent the realization of expected financial benefits. Commodity Price Increases → Operating Costs → Significant shortages or price spikes in raw materials like steel and electronics directly impact the cost of goods sold. Economic Downturns → Goodwill and Long-Lived Assets → Adverse market conditions may necessitate impairment charges for assets on the balance sheet.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-Q | Feb 2026 | Dec 2025 |
| 14A | Dec 2025 | — |
| 10-K | Nov 2025 | Sep 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Emerson Q2 2026 results reported, full-year fiscal outlook updated, dividend declared
- ▸Q2 2026 results reported for period ending March 31, 2026
- ▸Full-year fiscal 2026 outlook updated
- ▸Quarterly cash dividend declared at $0.555 per share
- ▸Dividend payable on June 10, 2026
Emerson Q1 Revenue $4.56B Misses Estimates, Adjusted EPS $1.54 In-Line
- ▸Q1 revenue $4.56B, +2.9% YoY, missed estimates of $4.59B
- ▸Adjusted EPS $1.54, in line with analyst consensus
- ▸Q2 revenue guidance $4.80B, in line with analyst expectations
- ▸FY Adjusted EPS guidance raised to $6.50 at midpoint
- ▸Free cash flow $1.30B, significant improvement from -$87M prior year
Emerson Q2 EPS $1.10 beats estimates, underlying orders rise 5% YoY
- ▸Q2 GAAP EPS $1.10, up 28% YoY
- ▸Q2 net sales $4.56B, up 3% YoY
- ▸Underlying orders increased 5% driven by Software & Systems
- ▸FY26 adjusted EPS guidance reaffirmed at $6.45–$6.55
- ▸Declared quarterly cash dividend of $0.555 per share
Emerson selected to automate Strategic Biofuels' $2B Louisiana carbon-neutral power facility
- ▸Emerson to automate $2B Louisiana Green Fuels biomass power facility
- ▸Facility to convert 1.3 million tons of forestry waste into power annually
- ▸Project to capture and sequester 1.1 million metric tons of CO2 annually
- ▸Plant will generate 100 megawatts of clean, dispatchable electricity
- ▸Emerson to deploy DeltaV automation platform and AspenTech software suite
BMO Capital initiates Emerson Electric at Market Perform with $150 price target
- ▸BMO Capital initiates EMR coverage with Market Perform rating
- ▸Price target set at $150 per share
- ▸Company plans $10B capital return: $6B buybacks and $4B dividends
- ▸Underlying orders +9% YoY in fiscal Q1 2026
- ▸Test & Measurement segment revenue +11% YoY; Ovation business +20% YoY
Emerson Electric upgraded to Buy at Jefferies with $175 price target
- ▸Jefferies upgrades EMR to Buy from Hold, raises price target to $175
- ▸Q1 FY2026 underlying orders grew 9%, marking fourth consecutive quarter of growth
- ▸Q1 FY2026 adjusted EPS $1.46, beating $1.41 consensus estimate
- ▸FY2026 adjusted EPS guidance maintained at $6.40–$6.55
- ▸Test & Measurement segment EBITA margins expanded to 29.7% from 25.5% YoY
Emerson Electric raises 2026 EPS guidance to $6.40–$6.55 on AI demand
- ▸Raised 2026 EPS guidance to $6.40–$6.55
- ▸Fisher Asset Management increased stake by 15% in Q4 2025
- ▸Fisher position grew to over 7 million shares by end of 2025
- ▸AI-enabled products and North American orders cited as primary growth drivers
- ▸Company operates across industrial control, automation, and software segments
Emerson Electric raises FY26 EPS guidance, announces $250 million share buyback program
- ▸Raised full-year 2026 EPS guidance following Q1 earnings beat
- ▸Announced new $250 million share buyback authorization
- ▸Committed to returning $10 billion to shareholders by 2028
- ▸Projects $21.3 billion revenue and $3.3 billion earnings by 2028
- ▸Focusing capital allocation on AI-enhanced software and automation portfolio