Emerson Electric (NYSE:EMR) Announces Earnings Results

Emerson Electric (NYSE:EMR) announced its quarterly earnings results on Tuesday. The industrial products company reported $1.54 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $1.54, FiscalAI reports. Emerson Electric had a return on equity of 17.25% and a net margin of 12.72%.The company had revenue of $4.56 billion during the quarter, compared to the consensus estimate of $4.59 billion. During the same period in the previous year, the company posted $1.48 earnings per share. Emerson Electric’s revenue for the quarter was up 2.9% on a year-over-year basis. Emerson Electric updated its FY 2026 guidance to 6.450-6.550 EPS and its Q3 2026 guidance to 1.650-1.700 EPS.

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

• The conflict in the Middle East caused an approximate 1-point hit to underlying sales (~$50M in Q2) and Emerson expects about $100M more disruption this year, though operations are largely restored and management sees a ~$100M rebuild/restart opportunity over several quarters.
• Emerson highlighted strong industrial software momentum — ACV reached $1.64 billion (up 9% YoY) and the company reiterates ACV growth of 10%+ for 2026, positioning its AI-enabled offerings (e.g., Aspen Hybrid Models) as a differentiator for mission-critical applications.
• Order and project pipelines remain healthy with underlying orders up 5% in Q2, backlog up 9% to $8.2 billion, a project funnel of $11.2 billion, and ~$450M of quarter wins (85% from growth verticals such as power, life sciences and LNG).
• Financial execution beat expectations — adjusted segment EBITDA margin was 27.6%, Q2 adjusted EPS was $1.54, the full-year adjusted EPS guide was raised to $6.45–$6.55, and Emerson has repurchased $542M YTD toward a planned ~$2.2B capital return.

Emerson Electric Trading Up 2.2%

Shares of NYSE EMR traded up $3.00 during mid-day trading on Tuesday, reaching $138.46. 4,138,793 shares of the company’s stock were exchanged, compared to its average volume of 2,695,124. The firm has a market capitalization of $77.81 billion, a price-to-earnings ratio of 33.85, a PEG ratio of 2.16 and a beta of 1.26. The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.62 and a current ratio of 0.84. Emerson Electric has a 52-week low of $106.53 and a 52-week high of $165.15. The company’s 50-day moving average is $138.65 and its 200-day moving average is $139.04.

Key Stories Impacting Emerson Electric

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

• Positive Sentiment: Quarterly EPS matched consensus at $1.54 and rose versus a year ago, signaling stable earnings execution and removing an earnings surprise risk for investors. Read More.
• Positive Sentiment: Emerson reaffirmed/updated FY?2026 EPS guidance to $6.45–$6.55 and Q3 EPS guidance to $1.65–$1.70, roughly in line with consensus, which reduces downside surprise risk around the back half of the year. Read More.
• Positive Sentiment: Board strengthening: Jennifer Newstead (Apple SVP & General Counsel) was elected to the board, a governance/credibility positive that investors often view favorably. Read More.
• Positive Sentiment: Dividend declared: Emerson announced a quarterly cash dividend of $0.555 per share, supporting income-oriented investor demand. Read More.
• Neutral Sentiment: Company posted detailed press materials and a conference call/slide deck for Q2 results — useful for digging into segment performance and margin commentary but neutral until new information emerges. Read More.
• Negative Sentiment: Revenue narrowly missed estimates: Q2 revenue was $4.56B versus ~$4.59B expected, a slight top-line shortfall that could limit upside if it signals softer demand in parts of the portfolio. Read More.

Analyst Upgrades and Downgrades

EMR has been the subject of a number of analyst reports. Morgan Stanley boosted their price target on Emerson Electric from $115.00 to $125.00 and gave the company an “underweight” rating in a report on Friday, January 9th. UBS Group raised Emerson Electric from a “neutral” rating to a “buy” rating and boosted their price target for the company from $131.00 to $168.00 in a report on Monday, January 5th. Barclays decreased their target price on Emerson Electric from $145.00 to $140.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 1st. HSBC boosted their price target on shares of Emerson Electric from $165.00 to $170.00 and gave the stock a “buy” rating in a report on Thursday, February 5th. Finally, Stephens boosted their price target on shares of Emerson Electric from $145.00 to $155.00 and gave the stock an “equal weight” rating in a report on Monday, February 9th. Twelve analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Emerson Electric currently has a consensus rating of “Hold” and a consensus price target of $162.38.

Insider Activity at Emerson Electric

In related news, Director Matthew S. Levatich sold 1,476 shares of the firm’s stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $162.16, for a total transaction of $239,348.16. Following the completion of the transaction, the director directly owned 24,349 shares in the company, valued at $3,948,433.84. This trade represents a 5.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Nicholas J. Piazza sold 6,703 shares of Emerson Electric stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $159.07, for a total value of $1,066,246.21. Following the completion of the transaction, the vice president owned 31,664 shares of the company’s stock, valued at $5,036,792.48. The trade was a 17.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 13,879 shares of company stock worth $2,116,818 in the last three months. 0.23% of the stock is owned by company insiders.

Institutional Investors Weigh In On Emerson Electric

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Motiv8 Investments LLC purchased a new stake in shares of Emerson Electric during the fourth quarter worth approximately $27,000. IFC & Insurance Marketing Inc. purchased a new stake in shares of Emerson Electric during the fourth quarter worth approximately $27,000. Darwin Wealth Management LLC purchased a new stake in shares of Emerson Electric in the second quarter valued at approximately $29,000. Quattro Advisors LLC acquired a new position in Emerson Electric during the fourth quarter worth $30,000. Finally, Kemnay Advisory Services Inc. acquired a new position in Emerson Electric during the fourth quarter worth $30,000. Institutional investors and hedge funds own 74.30% of the company’s stock.

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.