Emerson Q1 Earnings Top Estimates, Intelligent Devices Sales Rise

Emerson Electric Co. EMR reported first-quarter fiscal 2026 (ended Dec. 31, 2025) adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.41. The bottom line increased 6% year over year.

Emerson’s net sales of $4.35 billion fell short of the consensus estimate by 0.12%. The top line increased 4% year over year, driven by the solid performance of the Software and Control segment. The company’s underlying sales were up 2% year over year.

EMR Business Segments’ Performance

The Intelligent Devices segment’s net sales were $2.39 billion, up 4% year over year. Underlying sales increased 2%. The segment consists of two subgroups, namely Final Control and Sensors.

Final Control’s sales increased 4% year over year to $1.39 billion. Sensors generated sales of $996 million, up 2% year over year.

The Software and Systems segment generated net sales of $1.45 billion, up 5% year over year. Underlying sales increased 3%. The segment consists of two subgroups, namely Control Systems & Software and Test & Measurement.

Control Systems & Software reported sales of $1.04 billion, reflecting an increase of 2% year over year. Test & Measurement sales were $409 million, increasing 14% year over year.

The Safety & Productivity segment generated net sales of $503 million, up 3% year over year. Underlying sales increased 1%.

Emerson Electric Co. Price, Consensus and EPS Surprise

Emerson Electric Co. price-consensus-eps-surprise-chart | Emerson Electric Co. Quote

Emerson’s Margin Details

The cost of sales increased 4.9% year over year to $2.04 billion. The pretax earnings margin was 17.8% compared with 18.6% in the year-ago period. Adjusted EBITA margin was 26.3%, relatively stable from the year-earlier quarter. Selling, general and administrative expenses increased 1.5% year over year to $1.24 billion.

EMR’s Balance Sheet & Cash Flow

Exiting the first three months of fiscal 2026, Emerson had cash and cash equivalents of $1.75 billion compared with $1.54 billion at the end of fiscal 2025 (ended September 2025). Long-term debt was $7.58 billion compared with $8.32 billion at the end of fiscal 2025.

In the same period, the company generated net cash of $699 million from operating activities, down 10% year over year. Capital expenditure was $97 million, up from $83 million in the year-ago period. Emerson paid out dividends of $312 million and repurchased shares worth $250 million in the same period.

Emerson’s Q2 Fiscal 2026 Outlook

For the second quarter of fiscal 2026 (ending March 2026), Emerson anticipates year-over-year net sales growth to be approximately 3-4% and underlying sales growth to be approximately 1-2%.

EMR anticipates adjusted earnings per share to be in the range of $1.50-$1.55.

EMR’s FY26 Outlook

Emerson currently anticipates net sales growth of approximately 5.5% from the year-earlier level. Underlying sales are expected to rise approximately 4%.

EMR projects earnings per share to be $4.78-$4.93. Adjusted earnings per share are estimated to be $6.40-$6.55. The company expects operating cash flow to be $4.0-$4.1 billion. Free cash flow is estimated to be about $3.5-$3.6 billion.

EMR’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the same space are discussed below:

Nordson Corporation NDSN currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 1.9%.

Flowserve Corporation FLS presently carries a Zacks Rank of 2. Flowserve’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has been stable.

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

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