Emerson Electric (NYSE:EMR) Releases Earnings Results, Beats Expectations By $0.05 EPS

Emerson Electric (NYSE:EMR) announced its earnings results on Tuesday. The industrial products company reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.05, FiscalAI reports. The company had revenue of $4.35 billion for the quarter, compared to analysts’ expectations of $4.37 billion. Emerson Electric had a net margin of 12.72% and a return on equity of 17.35%. The firm’s quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.38 EPS. Emerson Electric updated its FY 2026 guidance to 6.400-6.550 EPS and its Q2 2026 guidance to 1.500-1.550 EPS.

Here are the key takeaways from Emerson Electric’s conference call:

• Emerson reported 9% underlying order growth in Q1 with backlog up 9% to $7.9B and roughly $450M of automation-content wins (funnel $11.1B), driven by power, LNG, semiconductors and test & measurement—supporting stronger second-half 2026 and 2027 revenue visibility.
• Q1 results beat expectations with a 27.7% adjusted‑segment EBITDA margin, adjusted EPS of $1.46 (up 6%), $602M free cash flow, and the company reiterated sales/margin targets while raising the bottom and midpoint of full‑year adjusted EPS to $6.40–$6.55, and completed $250M of repurchases as part of ~$2.2B planned capital returns.
• Product and software momentum continues—Nigel AI upgraded toward an “AI author,” DeltaV v16 launched, NI recognized industry awards—and Annual Contract Value grew 9% to $1.6B with ACV guidance of 10%+ for 2026, reinforcing recurring revenue and margin expansion potential.
• A timing/accounting headwind from a software contract renewal will depress H1 reported revenue (~$110M impact) and full‑year revenue (~$120M), subtract roughly 40 bps from full‑year adjusted‑segment EBITDA and about $0.15 from adjusted EPS, creating a near‑term drag despite underlying strength.
• Geographic and end‑market softness remains—Europe and China weak (company now expects China down low‑single‑digits for 2026) and pockets like chemicals and automotive are challenged; sensors margins fell YoY due to FX and mix, and modest DRAM supply/availability is being monitored.

Emerson Electric Stock Performance

EMR stock traded down $4.25 during midday trading on Thursday, reaching $153.07. 1,329,427 shares of the company were exchanged, compared to its average volume of 3,382,218. The firm has a market capitalization of $86.07 billion, a price-to-earnings ratio of 37.45, a price-to-earnings-growth ratio of 2.46 and a beta of 1.26. The business has a 50-day moving average price of $140.83 and a two-hundred day moving average price of $136.13. Emerson Electric has a one year low of $90.06 and a one year high of $160.13. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.88 and a quick ratio of 0.65.

Emerson Electric Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Friday, February 13th will be given a $0.555 dividend. This represents a $2.22 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, February 13th. Emerson Electric’s dividend payout ratio (DPR) is presently 54.28%.

Emerson Electric declared that its Board of Directors has approved a stock buyback program on Wednesday, November 5th that allows the company to buyback $0.00 in shares. This buyback authorization allows the industrial products company to repurchase shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Key Stories Impacting Emerson Electric

Here are the key news stories impacting Emerson Electric this week:

• Positive Sentiment: Q1 results beat EPS estimates and company raised FY‑2026 guidance — Emerson reported $1.46 EPS vs. $1.41 consensus, revenue roughly in line, and raised its FY EPS range to $6.40–$6.55 (raised the floor). Management cited strong automation demand and AI‑enabled product adoption as drivers. Emerson lifts profit forecast floor
• Positive Sentiment: Analysts pushed up targets and ratings — several shops raised price targets (Citigroup, RBC) and reiterated positive views, signaling buy‑side support and more upside in estimates. RBC raises price target
• Positive Sentiment: Large retail/institutional call buying — unusually heavy call‑option activity was reported, which often signals bullish positioning ahead of further upside. (Intraday options volume note)
• Positive Sentiment: Dividend declared — Emerson announced a quarterly cash dividend of $0.555 per share (payable March 10), supporting income investor interest. PR Newswire: Q1 results & dividend
• Neutral Sentiment: Revenue largely in line — top‑line came in close to expectations; growth is present but not significantly above consensus, leaving upside tied to margin and execution. Q1 highlights
• Negative Sentiment: Q2 EPS guide slightly below Street — Emerson guided Q2 to $1.50–$1.55 vs. about $1.56 consensus, a modest shortfall that could cap near‑term upside if investors focus on the miss. Company press release / slide deck
• Negative Sentiment: Deutsche Bank downgraded EMR from Buy to Hold despite a $170 target — one large shop trimmed its stance, which could weigh on sentiment even as other firms raised targets. Benzinga note

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Jefferies Financial Group lifted their price target on shares of Emerson Electric from $150.00 to $160.00 and gave the stock a “hold” rating in a research note on Thursday. Barclays lifted their target price on shares of Emerson Electric from $135.00 to $145.00 and gave the stock an “equal weight” rating in a research report on Wednesday, January 7th. JPMorgan Chase & Co. lifted their target price on shares of Emerson Electric from $150.00 to $157.00 and gave the stock a “neutral” rating in a research note on Friday, January 16th. Citigroup lifted their target price on Emerson Electric from $165.00 to $174.00 and gave the company a “buy” rating in a report on Wednesday. Finally, Evercore ISI increased their price target on Emerson Electric from $170.00 to $185.00 and gave the company an “outperform” rating in a report on Thursday. Ten equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $163.50.

Insiders Place Their Bets

In related news, CEO Surendralal Lanca Karsanbhai sold 7,263 shares of Emerson Electric stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $133.00, for a total transaction of $965,979.00. Following the completion of the sale, the chief executive officer directly owned 196,292 shares of the company’s stock, valued at approximately $26,106,836. This trade represents a 3.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.23% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Emerson Electric

A number of hedge funds have recently added to or reduced their stakes in the business. Cadence Bank grew its position in shares of Emerson Electric by 1.8% during the 3rd quarter. Cadence Bank now owns 4,834 shares of the industrial products company’s stock worth $634,000 after buying an additional 85 shares during the period. Riggs Asset Managment Co. Inc. grew its holdings in Emerson Electric by 14.0% in the second quarter. Riggs Asset Managment Co. Inc. now owns 740 shares of the industrial products company’s stock worth $99,000 after purchasing an additional 91 shares during the period. Gamco Investors INC. ET AL lifted its position in shares of Emerson Electric by 1.9% during the second quarter. Gamco Investors INC. ET AL now owns 4,921 shares of the industrial products company’s stock valued at $656,000 after purchasing an additional 94 shares in the last quarter. Gabelli Funds LLC increased its position in shares of Emerson Electric by 1.9% during the second quarter. Gabelli Funds LLC now owns 5,390 shares of the industrial products company’s stock valued at $719,000 after buying an additional 100 shares during the period. Finally, HUB Investment Partners LLC lifted its holdings in Emerson Electric by 5.7% in the second quarter. HUB Investment Partners LLC now owns 2,253 shares of the industrial products company’s stock worth $300,000 after buying an additional 122 shares during the period. 74.30% of the stock is currently owned by institutional investors.

About Emerson Electric

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.