Emerson Electric (NYSE:EMR) Posts Quarterly Earnings Results, Hits Expectations

Key Points

• Emerson reported Q2 adjusted EPS of $1.54, matching consensus, and reaffirmed FY‑2026 guidance of $6.45–$6.55 with Q3 guidance of $1.65–$1.70, reducing near‑term forecast risk.
• The company said the Middle East conflict trimmed about $50M from Q2 sales (roughly a 1‑point hit) and expects ~$100M more disruption this year, though operations are largely restored and management sees a ~$100M rebuild/restart opportunity over several quarters.
• Emerson emphasized strong industrial software momentum—ACV rose to $1.64B (+9% YoY) with a >10% ACV growth target for 2026—and reported healthy commercial trends (underlying orders +5%, backlog $8.2B), supporting growth in power, life sciences and LNG.

Emerson Electric (NYSE:EMR - Get Free Report) posted its quarterly earnings data on Tuesday. The industrial products company reported $1.54 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.54, FiscalAI reports. Emerson Electric had a return on equity of 17.25% and a net margin of 12.72%.The business had revenue of $4.56 billion for the quarter, compared to analysts' expectations of $4.59 billion. 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 Stock Performance

EMR traded up $3.00 during trading hours on Tuesday, hitting $138.46. The company's stock had a trading volume of 4,138,793 shares, compared to its average volume of 3,285,070. Emerson Electric has a fifty-two week low of $106.53 and a fifty-two week high of $165.15. The company has a current ratio of 0.84, a quick ratio of 0.62 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $77.81 billion, a PE ratio of 33.85, a PEG ratio of 2.19 and a beta of 1.26. The company has a 50-day simple moving average of $138.85 and a 200 day simple moving average of $138.98.

Insider Activity at Emerson Electric

In related news, CEO Surendralal Lanca Karsanbhai sold 5,700 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $142.32, for a total value of $811,224.00. Following the sale, the chief executive officer directly owned 281,393 shares in the company, valued at $40,047,851.76. This trade represents a 1.99% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Matthew S. Levatich sold 1,476 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $162.16, for a total value of $239,348.16. Following the completion of the sale, the director owned 24,349 shares in the company, valued at approximately $3,948,433.84. This represents a 5.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 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.

Hedge Funds Weigh In On Emerson Electric

Several hedge funds have recently modified their holdings of the company. Schroder Investment Management Group increased its position in shares of Emerson Electric by 3.6% during the 4th quarter. Schroder Investment Management Group now owns 7,461,727 shares of the industrial products company's stock valued at $990,320,000 after purchasing an additional 256,158 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of Emerson Electric by 5.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,857,999 shares of the industrial products company's stock worth $512,104,000 after purchasing an additional 191,117 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of Emerson Electric by 1.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,459,937 shares of the industrial products company's stock worth $459,203,000 after purchasing an additional 50,080 shares during the last quarter. Boston Partners grew its holdings in shares of Emerson Electric by 34.0% in the 3rd quarter. Boston Partners now owns 2,860,894 shares of the industrial products company's stock worth $375,547,000 after acquiring an additional 726,477 shares during the last quarter. Finally, Raymond James Financial Inc. grew its holdings in shares of Emerson Electric by 14.9% in the 2nd quarter. Raymond James Financial Inc. now owns 2,625,639 shares of the industrial products company's stock worth $350,077,000 after acquiring an additional 340,423 shares during the last quarter. 74.30% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Emerson Electric

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

• Positive Sentiment: Q2 EPS matched Street estimates at $1.54 and management reaffirmed FY‑2026 EPS guidance of $6.45–6.55 and Q3 EPS of $1.65–1.70 — guidance that sits essentially in line with consensus, reducing near‑term forecast risk for investors. Emerson Electric Posts Strong Q2 Results, Reaffirms 2026 Outlook
• Positive Sentiment: Board upgrade: Apple SVP & General Counsel Jennifer Newstead will join Emerson’s board (effective Aug 3), strengthening governance and adding a high-profile technology/legal executive to the board. This can be viewed positively for oversight and corporate strategy. Jennifer Newstead to Join Emerson's Board of Directors
• Positive Sentiment: Dividend: Emerson declared a quarterly cash dividend of $0.555 per share payable June 10 (record May 15), supporting the stock’s income appeal for yield-focused investors. Emerson Reports Second Quarter 2026 Results; Updates 2026 Outlook
• Neutral Sentiment: Company provided supporting materials (press release, slide deck) with the Q2 release — useful for drilling into segment trends and margin drivers but not new directional information by itself. View Press Release / Slide Deck
• Negative Sentiment: Revenue slightly missed expectations ($4.56B vs. $4.59B est.), and analysts warned that rising costs could pressure margins — a potential headwind to upside surprises in coming quarters. Investors monitoring margin trends or signs of cost recovery should be cautious. Emerson Gears Up to Post Q2 Earnings: Here's What to Expect

Analyst Ratings Changes

Several equities research analysts recently issued reports on EMR shares. Evercore raised their target price on shares of Emerson Electric from $170.00 to $185.00 and gave the stock an "outperform" rating in a research report on Thursday, February 5th. Loop Capital boosted their price objective on Emerson Electric from $155.00 to $180.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Robert W. Baird boosted their target price on shares of Emerson Electric from $143.00 to $164.00 and gave the stock a "neutral" rating in a research report on Friday, January 16th. Jefferies Financial Group assumed coverage on Emerson Electric in a research note on Tuesday, March 31st. They issued a "buy" rating and a $175.00 price target on the stock. Finally, Weiss Ratings cut shares of Emerson Electric from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, February 4th. Twelve research 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. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $162.38.

Emerson Electric Company Profile

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.

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