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Emerson Reports First Quarter 2026 Results

On February 3, 2026, Emerson (NYSE: EMR) disclosed its financial outcomes for the first quarter, which concluded on December 31, 2025. Alongside these results, the company offered an updated perspective on its projections for fiscal year 2026. Emerson has also announced a quarterly cash dividend of $0.555 per share, which will be payable on March 10, 2026, to stockholders recorded as of February 13, 2026.

Financial Highlights

The company saw a slight increase in net sales, reporting $4.346 billion, which is a 4% rise compared to the same quarter last year. Underlying orders surged by 9%, showcasing a robust demand across key sectors. Despite the increase in revenues, the pretax earnings remained steady at $775 million, reflecting consistent profitability.

Here's a breakdown of key financial metrics for Q1 2026 versus Q1 2025:

• - Net Sales: 2025 - $4.175 billion, 2026 - $4.346 billion
• - Pretax Earnings: $775 million across both years
• - Earnings Per Share (GAAP): 2025 - $1.02, 2026 - $1.07, representing a 5% increase.
• - Adjusted Earnings Per Share: Increased from $1.38 to $1.46, which marks an impressive 6% growth.

Management Insights

Lal Karsanbhai, the President and CEO of Emerson, conveyed confidence in the company's performance, remarking, "Emerson met sales commitments and exceeded expectations for profitability as our global teams continue to execute well. We delivered a fourth consecutive quarter of strong underlying orders growth and are experiencing robust demand for our automation technology, notably in Software Systems, particularly in North America, India, and the Middle East and Africa."

Karsanbhai also emphasized the company's commitment to innovation, stating, "Emerson is accelerating product development and delivering on vital programs highlighted during our 2025 investor conference, especially those enhancing our software-defined automation capabilities."

Outlook for 2026

Looking ahead, Emerson provided its guidance for fiscal 2026, expecting:

• - Net Sales Growth: Approximately 5.5% for the year, with Q2 anticipated between 3%-4%.
• - Underlying Sales Growth: Targeting around 4% for the year, with Q2 expected to be between 1%-2%.
• - Earnings Per Share: Projected to fall between $4.78 to $4.93 for the entire fiscal year, alongside anticipated free cash flow of $3.5 billion to $3.6 billion.

To further align with shareholder interests, Emerson highlighted plans to allocate approximately $2.2 billion in cash returns: this includes about $1 billion in share repurchases and approximately $1.2 billion in dividends.

Conclusion

Emerson's strong financial performance in the first quarter of 2026, paired with its optimistic outlook, demonstrates the robustness of its business model and the effectiveness of its strategic initiatives. The company continues to be a prominent player in the global automation landscape, committed to innovation and stakeholder value enhancement. Investors and stakeholders alike will be observing the forthcoming investor conference calls for more insights and detailed financial discussions toward achieving these ambitious goals.