Emerson Reports Fourth Quarter and Full Year 2026 Results; Provides Initial 2027 Outlook

Posted on November 4th, 2026 | Filed under Press Releases

ST. LOUIS, Nov. 4, 2026 /PRNewswire/ — Emerson (NYSE: EMR) today reported results1 for its fourth quarter and fiscal year ended September 30, 2026. Emerson also declared a 7% quarterly cash dividend increase to $0.595 per share of common stock payable December 10, 2026 to stockholders of record November 13, 2026.

Emerson

(dollars in millions, except per share)

2025 Q4

2026 Q4

Change

2025

2026

Change

Underlying Orders2

14 %

9 %

Net Sales

$4,855

$5,201

7 %

$18,016

$18,982

5 %

Underlying Sales3

7 %

4 %

Pretax Earnings

$760

$997

$2,905

$3,489

Margin

15.6 %

19.2 %

360 bps

16.1 %

18.4 %

230 bps

Adjusted Segment EBITA4

$1,333

$1,511

$4,975

$5,360

Margin

27.5 %

29.1 %

160 bps

27.6 %

28.2 %

 60 bps

GAAP Earnings Per Share

$1.07

$1.33

24 %

$3.99

$4.79

20 %

Adjusted Earnings Per Share5

$1.62

$1.86

15 %

$6.01

$6.59

10 %

Operating Cash Flow

$1,011

$1,075

6 %

$3,676

$3,978

8 %

Free Cash Flow

$843

$916

9 %

$3,245

$3,535

9 %

Management Commentary

“Emerson capped a strong 2026 with fourth quarter sales and profitability exceeding expectations,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “Underlying orders were up 14%, supported by exceptional long-cycle project activity in our growth verticals. Demand was broad-based, with substantial growth across all business groups and regions.”

Karsanbhai continued, “Emerson has a resilient portfolio with an unparalleled software-defined technology stack aligned with long-term secular trends. We have confidence in our 2027 plans given our robust backlog and favorable demand trends in our growth verticals.”

2027 Outlook

The following tables summarize the fiscal year 2027 guidance framework, which assumes returning ~$3.8B through ~$2.5B of share repurchases and ~$1.3B of dividends.

Guidance figures are approximate.

2027 Q1

2027

Net Sales Growth

~5%

~5%

Underlying Sales Growth

~5%

~5%

Earnings Per Share

$1.19 – $1.23

~$5.70

Amortization of intangibles

~$0.35

~$1.41

Restructuring and related costs

~$0.04

~$0.14

Adjusted Earnings Per Share

$1.58 – $1.62

~$7.25

Operating Cash Flow

$4.3B – $4.4B

Free Cash Flow

$3.8B – $3.9B

Share Repurchase

~$1.5B

~$2.5B

1

Results are presented on a continuing operations basis.

2

Underlying orders do not include AspenTech.

3

Underlying sales exclude the impact of currency translation, and significant acquisitions and divestitures.

4

Adjusted segment EBITA represents segment earnings excluding restructuring and related costs and intangibles amortization expense.

5

Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, first year purchase accounting related items and transaction-related costs, the mark-to-market adjustment on pension and other postretirement plans, discrete taxes, and certain gains, losses or impairments.

Conference Call

Today, beginning at 7:30 a.m. Central Time / 8:30 a.m. Eastern Time, Emerson management will discuss the fourth quarter and fiscal year 2026 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.

About Emerson

Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be “forward-looking” statements, which represent management’s expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine, Middle East and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company’s most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company’s expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Contacts

Investors:

Media:

Carl Schumacher

Joseph Sala / Greg Klassen / Connor Murphy

(314) 553-2197

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

(tables attached)

Table 1

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

Quarter Ended
September 30,

Year Ended September
30,

2025

2026

2025

2026

Net sales

$     4,855

$     5,201

$   18,016

$   18,982

Costs and expenses:

     Cost of sales

2,335

2,461

8,497

8,854

     SG&A expenses

1,330

1,393

5,103

5,296

     Other deductions, net

338

274

1,274

1,009

     Interest expense, net

92

76

237

334

Earnings from continuing operations before income taxes

760

997

2,905

3,489

Income taxes

152

253

690

796

Earnings from continuing operations

608

744

2,215

2,693

Discontinued operations, net of tax

1

—

8

—

Net earnings

609

744

2,223

2,693

Less: Noncontrolling interests in subsidiaries

—

—

(47)

2

Net earnings common stockholders

$        609

$        744

$     2,270

$     2,691

Earnings common stockholders

Earnings from continuing operations

$        608

$        744

$     2,262

$     2,691

Discontinued operations

1

—

8

—

Net earnings common stockholders

$        609

$        744

$     2,270

$     2,691

Diluted avg. shares outstanding

565.5

559.7

566.7

562.0

Diluted earnings per share common stockholders

Earnings from continuing operations

$       1.07

$       1.33

$       3.99

$       4.79

Discontinued operations

0.01

—

0.01

—

Diluted earnings per common share

$       1.08

$       1.33

$       4.00

$       4.79

Quarter Ended
September 30,

Year Ended September
30,

2025

2026

2025

2026

Other deductions, net

     Amortization of intangibles

$        208

$        203

$       884

$       816

     Restructuring costs

66

46

136

187

     Other

64

25

254

6

          Total

$        338

$        274

$     1,274

$     1,009

 

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

Year Ended Sept 30,

2025

2026

Assets

     Cash and equivalents

$         1,544

$         1,806

     Receivables, net

3,101

3,317

     Inventories

2,213

2,432

     Other current assets

1,725

1,962

          Total current assets

8,583

9,517

     Property, plant & equipment, net

2,871

2,859

     Goodwill

18,193

18,104

     Other intangible assets

9,458

8,442

     Other

2,859

2,892

          Total assets

$       41,964

$       41,814

Liabilities and equity

     Short-term borrowings and current

        maturities of long-term debt

$         4,797

$         4,667

     Accounts payable

1,384

1,698

     Accrued expenses

3,616

3,753

          Total current liabilities

9,797

10,118

     Long-term debt

8,319

7,508

     Other liabilities

3,550

3,432

Equity

     Common stockholders’ equity

20,282

20,740

     Noncontrolling interests in subsidiaries                                                                           

16

16

     Total equity

20,298

20,756

          Total liabilities and equity

$       41,964

$       41,814

 

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

Year Ended Sept 30,

2025

2026

Operating activities

Net earnings

$         2,223

$         2,693

Earnings from discontinued operations, net of tax

(8)

—

Adjustments to reconcile net earnings to net cash provided by operating activities:

        Depreciation and amortization

1,518

1,478

        Stock compensation

263

237

        Pension expense (income)

9

(25)

        Pension funding

(46)

(38)

        Changes in operating working capital

(9)

(338)

        Other, net

(274)

(29)

            Cash from continuing operations

3,676

3,978

            Cash from discontinued operations

(578)

—

            Cash provided by operating activities

3,098

3,978

Investing activities

Capital expenditures

(431)

(443)

Purchases of businesses, net of cash and equivalents acquired

(37)

(6)

Other, net

(125)

(6)

    Cash used in investing activities

(593)

(455)

Financing activities

Net increase in short-term borrowings

1,110

2,051

Proceeds from short-term borrowings greater than three months

8,008

7,058

Payments of short-term borrowings greater than three months

(4,918)

(9,388)

Proceeds from long-term debt

1,544

—

Payments of long-term debt

(503)

(588)

Dividends paid

(1,192)

(1,244)

Purchases of common stock

(1,167)

(1,000)

Purchase of noncontrolling interest

(7,244)

—

Repurchase of AspenTech share awards

(76)

—

Other, net

(72)

(111)

    Cash used in financing activities

(4,510)

(3,222)

Effect of exchange rate changes on cash and equivalents

(39)

(39)

Increase (Decrease) in cash and equivalents

(2,044)

262

Beginning cash and equivalents

3,588

1,544

Ending cash and equivalents

$         1,544

$         1,806

 

Table 4

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(AMOUNTS IN MILLIONS, UNAUDITED)

The following tables show results for the Company’s segments on an adjusted segment EBITA basis and are intended
to supplement the Company’s results of operations, including its segment earnings which are defined as earnings before
interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding
intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA,
and adjusted segment and total segment EBITA margin are measures used by management and may be useful for
investors to evaluate the Company’s segments’ operational performance.

Quarter Ended Sept 30,

2025

2026

Reported

Underlying

Sales

Control Systems & Software                                   

1,099

$       1,247

14 %

14 %

Test & Measurement

407

465

14 %

15 %

Software & Systems

$      1,506

$       1,712

14 %

14 %

Sensors

1,149

1,191

4 %

3 %

Final Control

1,637

1,725

5 %

5 %

Intelligent Devices

$      2,786

$       2,916

5 %

4 %

Safety & Productivity

$         563

$          573

2 %

2 %

Total

$      4,855

$       5,201

7 %

7 %

Sales Growth by Geography

Quarter Ended
Sept 30,

Americas

9 %

Europe

1 %

Asia, Middle East & Africa                                       

7 %

Table 4 cont.

Year Ended Sept 30,

2025

2026

Reported

Underlying

Sales

Control Systems & Software                                   

4,334

$         4,580

6 %

5 %

Test & Measurement

1,485

1,732

17 %

15 %

Software & Systems

$         5,819

$         6,312

8 %

7 %

Sensors

4,135

4,302

4 %

3 %

Final Control

5,952

6,194

4 %

2 %

Intelligent Devices

$       10,087

$       10,496

4 %

3 %

Safety & Productivity

$         2,110

$         2,174

3 %

2 %

Total

$       18,016

$       18,982

5 %

4 %

Sales Growth by Geography      

Year Ended Sept
30,

Americas

7 %

Europe

(1) %

Asia, Middle East & Africa                                       

3 %

Table 4 cont.

Quarter Ended Sept 30,

Quarter Ended Sept 30,

2025

2026

As
Reported
(GAAP)

Adjusted
EBITA
(Non-GAAP)

As
Reported
(GAAP)

Adjusted
EBITA
(Non-
GAAP)

Earnings

Control Systems & Software

$        186

$        298

$            297

$            412

 Margins

16.9 %

27.0 %

23.8 %

33.1 %

Test & Measurement

(4)

116

26

141

 Margins

(1.1) %

28.5 %

5.6 %

30.3 %

Software & Systems

$        182

$        414

$            323

$            553

 Margins

12.0 %

27.4 %

18.8 %

32.3 %

Sensors

317

348

339

357

 Margins

27.6 %

30.3 %

28.5 %

30.0 %

Final Control

403

444

426

470

 Margins

24.6 %

27.2 %

24.7 %

27.2 %

Intelligent Devices

$        720

$        792

$            765

$           827

 Margins

25.8 %

28.5 %

26.2 %

28.4 %

Safety & Productivity

113

127

119

131

 Margins

20.1 %

22.6 %

20.7 %

22.9 %

Corporate items and interest expense, net:

Stock compensation

$           (65)

$           (55)

$            (57)

$            (53)

Unallocated pension and postretirement costs

25

25

31

31

Pension and OPEB mark-to-market adjustment

(34)

—

2

—

Corporate and other

(89)

(34)

(110)

(81)

Interest expense, net

(92)

—

(76)

—

Pretax Earnings / Adjusted EBITA

$           760

$        1,269

$            997

$         1,408

 Margins

15.6 %

26.1 %

19.2 %

27.1 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$         1,333

$         1,511

 Margins

27.5 %

29.1 %

Year Ended Sept 30,

Year Ended Sept 30,

2025

2026

As
Reported
(GAAP)

Adjusted
EBITA
(Non-
GAAP)

As
Reported
(GAAP)

Adjusted
EBITA
(Non-
GAAP)

Earnings

Control Systems & Software

$         903

$       1,403

$       1,038

$       1,467

 Margins

20.8 %

32.4 %

22.7 %

32.0 %

Test & Measurement

(68)

375

47

503

 Margins

(4.5) %

25.3 %

2.7 %

29.0 %

Software & Systems

$           835

$        1,778

$         1,085

$        1,970

 Margins

14.4 %

30.6 %

17.2 %

31.2 %

Sensors

1,112

1,182

1,184

1,259

 Margins

26.9 %

28.6 %

27.5 %

29.3 %

Final Control

1,415

1,560

1,459

1,660

Margins

23.8 %

26.2 %

23.6 %

26.8 %

Intelligent Devices

$        2,527

$        2,742

$         2,643

$        2,919

 Margins

25.1 %

27.2 %

25.2 %

27.8 %

Safety & Productivity

418

455

416

471

 Margins

19.8 %

21.5 %

19.2 %

21.7 %

Corporate items and interest expense, net:

Stock compensation

(263)

(216)

(237)

(222)

Unallocated pension and postretirement costs

114

114

125

125

Pension and OPEB mark-to-market adjustment

(34)

—

2

—

Corporate and other

(455)

(175)

(211)

(209)

Interest expense, net

(237)

—

(334)

—

Pretax Earnings / Adjusted EBITA

$        2,905

$        4,698

$         3,489

$        5,054

 Margins

16.1 %

26.1 %

18.4 %

26.6 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$        4,975

$        5,360

 Margins

27.6 %

28.2 %

Table 4 cont.

Quarter Ended Sept 30,

Quarter Ended Sept 30,

2025

2026

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Control Systems & Software

$              102

$                10

$                99

$                16

Test & Measurement

107

13

107

8

Software & Systems

$              209

$                23

$              206

$                24

Sensors

12

19

11

7

Final Control

29

12

27

17

Intelligent Devices

$                41

$                31

$                38

$                24

Safety & Productivity

7

7

7

5

Corporate

—

20

—

10

Total

$              257

$                81

$              251

$                63

1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended September 30,
  2025 and 2026, respectively.

2 Restructuring and related costs includes $15 and $17 of restructuring-related costs for the three months ended September
  30, 2025 and 2026, respectively.

Year Ended Sept 30,

Year Ended Sept 30,

2025

2026

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Amortization of

Intangibles1

Restructuring

and

Related Costs2

Control Systems & Software               

$              471

$                29

$              402

$                27

Test & Measurement

425

18

429

27

Software & Systems

$              896

$                47

$              831

$                54

Sensors

45

25

46

29

Final Control

115

30

108

93

Intelligent Devices

$              160

$                55

$              154

$              122

Safety & Productivity

27

10

28

27

Corporate

—

50

—

24

Total

$            1,083

$              162

$            1,013

$              227

1 Amortization of intangibles includes $199 and $197 reported in cost of sales for the twelve months ended September 30,
  2025 and 2026, respectively.

2 Restructuring and related costs includes $26 and $40 of restructuring-related costs for the twelve months ended September
  30, 2025 and 2026, respectively.

Quarter Ended Sept 30,

2025

2026

Depreciation and Amortization                                                                                                  

Control Systems & Software

$           125

$           128

Test & Measurement

120

120

Software & Systems

245

248

Sensors

45

35

Final Control

58

57

Intelligent Devices

103

92

Safety & Productivity

19

21

     Corporate

12

12

          Total

$           379

$           373

Year Ended Sept 30,

2025

2026

Depreciation and Amortization

Control Systems & Software

$           557

$           502

Test & Measurement

476

479

Software & Systems

1,033

981

Sensors

140

136

Final Control

227

227

Intelligent Devices

367

363

Safety & Productivity

74

87

     Corporate

44

47

          Total

$         1,518

$         1,478

 

Table 5

EMERSON AND SUBSIDIARIES

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(AMOUNTS IN MILLIONS, UNAUDITED)

The following table shows the Company’s stock compensation and corporate and other expenses on an adjusted basis.
The Company’s definition of adjusted stock compensation excludes integration-related stock compensation expense.
The Company’s definition of adjusted corporate and other excludes corporate restructuring and related costs, first year
purchase accounting related items and transaction fees, the mark-to-market adjustment on pension and other
postretirement plans, and certain gains, losses or impairments. These metrics are useful for reconciling from total
adjusted segment EBITA to the Company’s consolidated adjusted EBITA.

Quarter Ended Sept 30,

2025

2026

Stock compensation (GAAP)

$                  (65)

$                  (57)

Integration-related stock compensation expense        

101

4

Adjusted stock compensation (non-GAAP)

$                  (55)

$                  (53)

Quarter Ended Sept 30,

2025

2026

 Corporate and other (GAAP)

$                  (89)

$                (110)

 Corporate restructuring and related costs

16

10

 Acquisition/divestiture fees and related costs

39

28

 IEEPA tariff refunds net of charitable trust contribution

—

(9)

 Adjusted corporate and other (Non-GAAP)

$                  (34)

$                  (81)

Quarter Ended Sept 30,

2025

2026

Pension income (expense) (GAAP)2

$                    (9)

$                    33

Pension and OPEB mark-to-market adjustment

34

(2)

Adjusted pension income (expense) (Non-GAAP)     

$                    25

$                    31

1 Integration-related stock compensation expense relates to NI and AspenTech and includes $4 reported as restructuring costs

2 Pension income (expense) includes the unallocated pension and postretirement costs and the pension and OPEB mark-to market adjustment

Table 5 cont.

Year Ended Sept 30,

2025

2026

 Stock compensation (GAAP)

$             (263)

$             (237)

Integration-related stock compensation expense

473

154

 Adjusted stock compensation (non-GAAP)

$             (216)

$             (222)

Year Ended Sept 30,

2025

2026

 Corporate and other (GAAP)

$             (455)

$             (211)

 Corporate restructuring and related costs

25

23

 Acquisition/divestiture fees and related costs

255

70

 IEEPA tariff refunds net of charitable trust contribution

—

(91)

 Adjusted corporate and other (Non-GAAP)

$             (175)

$             (209)

Year Ended Sept 30,

2025

2026

Pension income (expense) (GAAP)5

$                80

$               127

Pension and OPEB mark-to-market adjustment

34

(2)

Adjusted pension income (expense) (Non-GAAP)          

$               114

$               125

3 Integration-related stock compensation expense relates to NI and AspenTech and includes $25 reported as restructuring costs

4 Integration-related stock compensation expense relates to NI and AspenTech and includes $1 reported as restructuring costs

5 Pension income (expense) includes the unallocated pension and postretirement costs and the pension and OPEB mark-to market adjustment

       

Table 6

EMERSON AND SUBSIDIARIES

ADJUSTED EBITA & EPS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis,
are intended to supplement the Company’s discussion of its results of operations herein. The Company defines adjusted
EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense,
first year purchase accounting related items and transaction fees, the mark-to-market adjustment on pension and other
postretirement plans, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization
expense, restructuring expense, first year purchase accounting related items and transaction-related costs, the mark-to-market
adjustment on pension and other postretirement plans, discrete taxes, and certain gains, losses or impairments. Adjusted EBITA,
adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors
to evaluate the Company’s operational performance.

Quarter Ended Sept 30,

2025

2026

Pretax earnings

$           760

$           997

Percent of sales

15.6 %

19.2 %

Interest expense, net

92

76

Amortization of intangibles

257

251

Restructuring and related costs

81

63

Acquisition/divestiture fees and related costs

45

32

Pension and OPEB mark-to-market adjustment

34

(2)

IEEPA tariff refunds net of charitable trust contribution

—

(9)

Adjusted EBITA

$        1,269

$        1,408

Percent of sales

26.1 %

27.1 %

Quarter Ended Sept 30,

2025

2026

GAAP earnings from continuing operations per share

$          1.07

$          1.33

Amortization of intangibles

0.35

0.34

Restructuring and related costs

0.11

0.14

Acquisition/divestiture fees and related costs

0.06

0.05

Pension and OPEB mark-to-market adjustment

0.05

(0.01)

IEEPA tariff refunds net of charitable trust contribution

—

(0.01)

Discrete taxes

(0.02)

0.02

Adjusted earnings from continuing operations per share                                             

$          1.62

$          1.86

Year Ended Sept 30,

2025

2026

Pretax earnings

$        2,905

$        3,489

Percent of sales

16.1 %

18.4 %

Interest expense, net

237

334

Amortization of intangibles

1,083

1,013

Restructuring and related costs

162

227

Acquisition/divestiture fees and related costs

277

84

Pension and OPEB mark-to-market adjustment

34

(2)

IEEPA tariff refunds net of charitable trust contribution                                                    

—

(91)

Adjusted EBITA

$        4,698

$        5,054

Percent of sales

26.1 %

26.6 %

Year Ended Sept 30,

2025

2026

GAAP earnings from continuing operations per share

$          3.99

$          4.79

Amortization of intangibles

1.35

1.38

Restructuring and related costs

0.23

0.36

Acquisition/divestiture fees and related costs

0.33

0.14

Discrete taxes

0.06

0.05

Pension and OPEB mark-to-market adjustment

0.05

(0.01)

IEEPA tariff refunds net of charitable trust contribution

—

(0.12)

Adjusted earnings from continuing operations per share

$          6.01

$          6.59

Table 6 cont.

Quarter Ended September 30, 2026

Pretax
Earnings

Income
Taxes

Earnings from
Cont.
Ops.

Non-Controlling

Interests3

Net
Earnings
Common
Stockholders

Diluted
Earnings
Per
Share

As reported (GAAP)

$      997

$      253

$        744

$          —

$            744

$     1.33

Amortization of intangibles

2511

59

192

—

192

0.34

Restructuring and related costs

632

(16)

79

—

79

0.14

Acquisition/divestiture fees and related costs

32

3

29

—

29

0.05

Pension and OPEB mark-to-market adjustment

(2)

1

(3)

—

(3)

(0.01)

IEEPA tariff refunds net of charitable trust contribution

(9)

(2)

(7)

—

(7)

(0.01)

Discrete taxes

—

(10)

10

—

10

0.02

Adjusted (Non-GAAP)

$   1,332

$      288

$     1,044

$          —

$          1,044

$     1.86

Interest expense, net

$       76

Adjusted EBITA (Non-GAAP)

$   1,408

1 Amortization of intangibles includes $49 reported in cost of sales.

2 Restructuring and related costs includes $17 of restructuring-related costs.

3 Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in.

Year Ended September 30, 2026

Pretax
Earnings

Income
Taxes

Earnings from
Cont.
Ops.

Non-Controlling

Interests3

Net
Earnings
Common
Stockholders

Diluted
Earnings
Per
Share

As reported (GAAP)

$   3,489

$      796

$     2,693

$           2

$          2,691

$     4.79

Amortization of intangibles

1,0131

236

777

—

777

1.38

Restructuring and related costs

2272

24

203

—

203

0.36

Acquisition/divestiture fees and related costs

84

8

76

—

76

0.14

Pension and OPEB mark-to-market adjustment

(2)

1

(3)

—

(3)

(0.01)

IEEPA tariff refunds net of charitable trust contribution

(91)

(21)

(70)

—

(70)

(0.12)

Discrete taxes

—

(28)

28

—

28

0.05

Adjusted (Non-GAAP)

$   4,720

$   1,016

$     3,704

$           2

$          3,702

$     6.59

Interest expense, net

334

Adjusted EBITA (Non-GAAP)

$   5,054

1 Amortization of intangibles includes $197 reported in cost of sales.

2 Restructuring and related costs includes $40 of restructuring-related costs.

3 Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in. 

 

Reconciliations of Non-GAAP Financial Measures & Other

Table 7

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions,
except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.

Q4 FY26 Underlying Sales Change

Reported

(Favorable) /
Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Control Systems & Software

14 %

— %

— %

14 %

Test & Measurement

14 %

1 %

— %

15 %

Software & Systems

14 %

— %

— %

14 %

Sensors

4 %

(1) %

— %

3 %

Final Control

5 %

— %

— %

5 %

Intelligent Devices

5 %

(1) %

— %

4 %

Safety & Productivity

2 %

— %

— %

2 %

Emerson

7 %

— %

— %

7 %

Year Ended Sept 30, 2026 Underlying Sales Change

Reported

(Favorable) /
Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Control Systems & Software

6 %

(1) %

— %

5 %

Test & Measurement

17 %

(2) %

— %

15 %

Software & Systems

8 %

(1) %

— %

7 %

Sensors

4 %

(1) %

— %

3 %

Final Control

4 %

(2) %

— %

2 %

Intelligent Devices

4 %

(1) %

— %

3 %

Safety & Productivity

3 %

(1) %

— %

2 %

Emerson

5 %

(1) %

— %

4 %

Underlying Growth Guidance                                             

2027 Q1

Guidance

2027

Guidance

Reported (GAAP)

~5%

~5%

(Favorable) / Unfavorable FX

–

–

(Acquisitions) / Divestitures

–

–

Underlying (non-GAAP)

~5%

~5%

2025 Q4 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization
of
Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$         186

16.9 %

$         102

$            10

$         298

27.0 %

Test & Measurement

(4)

(1.1) %

107

13

116

28.5 %

Software & Systems

$         182

12.0 %

$         209

$            23

$         414

27.4 %

Sensors

317

27.6 %

12

19

348

30.3 %

Final Control

403

24.6 %

29

12

444

27.2 %

Intelligent Devices

$         720

25.8 %

$           41

$            31

$         792

28.5 %

Safety & Productivity

$         113

20.1 %

$             7

$              7

$         127

22.6 %

2026 Q4 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization
of
Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$         297

23.8 %

$           99

$            16

$         412

33.1 %

Test & Measurement

26

5.6 %

107

8

141

30.3 %

Software & Systems

$         323

18.8 %

$         206

$            24

$         553

32.3 %

Sensors

339

28.5 %

11

7

357

30.0 %

Final Control

426

24.7 %

27

17

470

27.2 %

Intelligent Devices

$         765

26.2 %

$           38

$            24

$         827

28.4 %

Safety & Productivity

$         119

20.7 %

$             7

$              5

$         131

22.9 %

Total Adjusted Segment EBITA

2025 Q4

2026 Q4

Pretax earnings (GAAP)

$           760

$           997

Margin

15.6 %

19.2 %

Corporate items and interest expense, net         

255

210

Amortization of intangibles

257

251

Restructuring and related costs

61

53

Adjusted segment EBITA (non-GAAP)

$         1,333

$         1,511

Margin

27.5 %

29.1 %

2025 Adjusted Segment EBITA          

EBIT

EBIT

Margin

Amortization
of
Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$         903

20.8 %

$         471

$            29

$       1,403

32.4 %

Test & Measurement

(68)

(4.5) %

425

18

375

25.3 %

Software & Systems

$         835

14.4 %

$         896

$            47

$       1,778

30.6 %

Sensors

1,112

26.9 %

45

25

1,182

28.6 %

Final Control

1,415

23.8 %

115

30

1,560

26.2 %

Intelligent Devices

$       2,527

25.1 %

$         160

$            55

$       2,742

27.2 %

Safety & Productivity

$          418

19.8 %

$           27

$            10

$          455

21.5 %

2026 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization
of
Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$       1,038

22.7 %

$         402

$            27

$       1,467

32.0 %

Test & Measurement

47

2.7 %

429

27

503

29.0 %

Software & Systems

$       1,085

17.2 %

$         831

$            54

$       1,970

31.2 %

Sensors

1,184

27.5 %

46

29

1,259

29.3 %

Final Control

1,459

23.6 %

108

93

1,660

26.8 %

Intelligent Devices

$       2,643

25.2 %

$         154

$          122

$       2,919

27.8 %

Safety & Productivity

$          416

19.2 %

$           28

$            27

$          471

21.7 %

Total Adjusted Segment EBITA

2025

2026

Pretax earnings (GAAP)

$         2,905

$         3,489

Margin

16.1 %

18.4 %

Corporate items and interest expense, net           

875

655

Amortization of intangibles

1,083

1,013

Restructuring and related costs

112

203

Adjusted segment EBITA (non-GAAP)

$         4,975

$         5,360

Margin

27.6 %

28.2 %

Free Cash Flow

2025 Q4

2026 Q4

Operating cash flow (GAAP)

$         1,011

$         1,075

Capital expenditures

(168)

(159)

Free cash flow (non-GAAP)

$            843

$            916

Free Cash Flow

FY25

FY26

2027E

($ in billions)

Operating cash flow (GAAP)                                       

$         3,676

$         3,978

 $4.3 – $4.4

Capital expenditures

(431)

(443)

~(0.5)

Free cash flow (non-GAAP)

$         3,245

$         3,535

$3.8 – $3.9

Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2027E figures are approximate, except where range is given.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/emerson-reports-fourth-quarter-and-full-year-2026-results-provides-initial-2027-outlook-302928622.html

SOURCE Emerson

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