Intelligent Devices Segment Drives Emerson: Can the Momentum Sustain?

Emerson Electric Co. EMR is benefiting from the persistent strength in its Intelligent Devices segment. Within the segment, the company is witnessing solid momentum in the Final Control business, supported by a strong demand environment across power end markets. Sales from this business increased 4% year over year in fiscal 2025 (ended September 2025).

Robust growth across the Americas and Asia, the Middle East & Africa regions is aiding Emerson’s Measurement & Analytical business. Sales from the business rose 2% year over year in the fiscal year. The Discrete Automation business’ sales increased 1% year over year in fiscal 2025, driven by solid momentum in the Americas region. However, softness in the Safety & Productivity business, owing to tepid demand for its products, remains concerning. Sales from the business declined 2% in the fiscal year.

Apart from this, EMR’s Software and Control segment is well positioned to benefit from solid growth in its AspenTech unit and strength in the power and process end markets. Given the strength across the majority of its businesses, Emerson expects net sales to increase approximately 5.5% year over year in fiscal 2026 (ended September 2026). Underlying sales are also anticipated to grow about 4% year over year in the same period.

Segment Snapshot of EMR’s Peers

As one of Emerson’s peers, Ingersoll Rand Inc. IR is benefiting from strong orders across its product portfolio of industrial vacuums, blowers and compressors, which drove Ingersoll's Industrial Technologies & Services segment. The segment’s revenues totaled $1.54 billion, up 5% year over year in the third quarter of 2025.

Another peer, Flowserve Corp. FLS is experiencing strength in the Pump Division segment. Strength in the aftermarket business, driven by a strong demand for products and services, is a prime catalyst for the Flowserve Pump Division segment’s growth. Its revenues totaled $800.3 million in the third quarter of 2025, up 2.3% year over year.

EMR’s Price Performance, Valuation and Estimates

Shares of Emerson have gained 1.8% in the past three months compared with the industry’s growth of 0.6%.

From a valuation standpoint, EMR is trading at a forward price-to-earnings ratio of 20.14X, below the industry’s average of 21.68X. Emerson carries a Value Score of D.

The Zacks Consensus Estimate for EMR’s fiscal 2026 earnings has inched down 0.3% over the past 60 days.

Emerson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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