Emerson (EMR) Q2 2026 Financial Results Summary

Emerson (NYSE: EMR) released its financial results for the second quarter ended March 31, 2026, on May 5, 2026. The company also updated its outlook for the full fiscal year 2026 and announced a quarterly cash dividend.

Key Financial Highlights

• Dividend Declaration:
  • A quarterly cash dividend of $0.555 per share payable on June 10, 2026, to shareholders of record as of May 15, 2026.
• Net Sales:
  • Q2 2025: $4,432 million
  • Q2 2026: $4,562 million
  • Change: +3% year-over-year (YoY)
• Underlying Sales:
  • Change: +0.5% YoY
• Underlying Orders:
  • Change: +5% YoY
• Pretax Earnings:
  • Q2 2025: $629 million
  • Q2 2026: $793 million
  • Change: +26% YoY
• Earnings Metrics:
  • GAAP Earnings Per Share (EPS):
    • Q2 2025: $0.86
    • Q2 2026: $1.10
    • Change: +28% YoY
  • Adjusted EPS:
    • Q2 2025: $1.48
    • Q2 2026: $1.54
    • Change: +4% YoY
• Operating Cash Flow:
  • Q2 2025: $825 million
  • Q2 2026: $779 million
  • Change: -6% YoY
• Free Cash Flow:
  • Q2 2025: $738 million
  • Q2 2026: $694 million
  • Change: -6% YoY

Margin Analysis

• Pretax Margin:
  • Q2 2025: 14.2%
  • Q2 2026: 17.4%
  • Change: +320 basis points (bps)
• Adjusted Segment EBITA Margin:
  • Q2 2025: 28.0%
  • Q2 2026: 27.6%
  • Change: -40 bps

Segment Performance

• Sales Growth by Segment:
  • Control Systems & Software:
    • Change: -2% YoY
  • Test & Measurement:
    • Change: +16% YoY
  • Sensors:
    • Change: +2% YoY
  • Final Control:
    • Change: +2% YoY
  • Intelligent Devices:
    • Change: +2% YoY
  • Safety & Productivity:
    • Change: +5% YoY
• Sales Growth by Geography:
  • Americas: +5%
  • Europe: -4%
  • Asia, Middle East & Africa: -5%

2026 Full Year Outlook

• Emerson's guidance for fiscal year 2026 includes:
  • Net Sales Growth: Approximately 4.5%
  • Underlying Sales Growth: Approximately 3%
  • Earnings Per Share: Between $4.79 - $4.89
  • Adjusted Earnings Per Share: Between $6.45 - $6.55
  • Operating Cash Flow: Between $4.0 billion - $4.1 billion
  • Free Cash Flow: Between $3.5 billion - $3.6 billion

Capital Allocation

• Emerson plans to return approximately $2.2 billion to shareholders through:
  • Share Repurchases: Approximately $1 billion
  • Dividends: Approximately $1.2 billion

Management Commentary

Lal Karsanbhai, Emerson President and CEO, commented on the results, emphasizing the resilient demand and order momentum despite challenges posed by global conflicts. The management remains optimistic about the second half of 2026, predicting strong performance supported by a robust backlog and growing orders.

Emerson's financial results illustrate a solid performance in the face of a changing global landscape, highlighting key metrics that demonstrate growth and strategic plans for shareholder returns.

Here are the extracted tables from the press release:

Table 1: EMERSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

Note: All amounts are in millions.

	Quarter Ended March 31,	Six Months Ended March 31,
Net sales	$4,432	$8,608
Cost of sales	$2,061	$4,002
SG&A expenses	$1,283	$2,506
Other deductions, net	$418	$646
Interest expense, net	$229	$434
Earnings before income taxes	$793	$1,568
Income taxes	$175	$344
Net earnings	$618	$1,224
Less: Noncontrolling interests in subsidiaries	$49	$58
Net earnings available to common stockholders	$569	$1,223
Diluted average shares outstanding	418	646
Diluted earnings per common share	$1.10	$2.17

Table 2: EMERSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLARS IN MILLIONS, UNAUDITED)

Note: All amounts are in millions.

Assets	Sept 30, 2025	March 31, 2026
Cash and equivalents	$1,544	$1,791
Receivables, net	$3,101	$3,158
Inventories	$2,213	$2,452
Other current assets	$1,725	$1,850
Total current assets	$8,583	$9,251
Property, plant & equipment, net	$2,871	$2,850
Goodwill	$18,193	$18,153
Other intangible assets	$9,458	$8,954
Other	$2,859	$2,880
Total assets	$41,964	$42,088
Liabilities and equity
Short-term borrowings and current maturities of long-term debt	$4,797	$5,804
Accounts payable	$1,384	$1,468
Accrued expenses	$3,616	$3,382
Total current liabilities	$9,797	$10,654
Long-term debt	$8,319	$7,555
Other liabilities	$3,550	$3,560
Equity
Common stockholders' equity	$20,282	$20,303
Noncontrolling interests in subsidiaries	$16	$16
Total equity	$20,298	$20,319
Total liabilities and equity	$41,964	$42,088

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