Emerson Electric (NYSE:EMR) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Emerson Electric (NYSE:EMR) announced its quarterly earnings data on Wednesday. The industrial products company reported $1.86 earnings per share for the quarter, beating analysts’ consensus estimates of $1.85 by $0.01, FiscalAI reports. The company had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.11 billion. Emerson Electric had a net margin of 13.83% and a return on equity of 17.58%. The firm’s revenue for the quarter was up .0% on a year-over-year basis. During the same quarter last year, the business posted $1.62 EPS.

Here are the key takeaways from Emerson Electric’s conference call:

• Emerson reported strong fourth-quarter results: underlying sales rose 7%, adjusted segment EBITA margin expanded 160 basis points to 29.1%, and adjusted EPS increased 15% to $1.86. For fiscal 2026, adjusted EPS grew 10% to $6.59 and free cash flow rose 9% to $3.5 billion.
• Underlying orders grew 14% in Q4 and backlog increased 11% to $8.2 billion, supported by broad-based demand and strength in power, LNG, and aerospace and defense. Growth verticals rose 21% for the year and now represent 27% of sales; the project funnel reached $13 billion.
• Management forecast fiscal 2027 underlying sales growth of about 5%, adjusted EPS of $7.25 (up 10%), and adjusted segment EBITA margin of 29%. It expects roughly 10% annual contract value growth in software and about 80 basis points of margin expansion.
• Management cited persistent weakness in Europe and China as key constraints on its outlook, and does not expect a China recovery in 2027, particularly given weakness in chemical and refining markets. The Middle East outlook also assumes the conflict does not escalate.
• Emerson plans to return about $3.8 billion to shareholders in 2027, including $2.5 billion in share repurchases and $1.3 billion in dividends; the dividend per share is set to increase 7%.

Emerson Electric Stock Down 4.1%

Shares of NYSE EMR traded down $7.04 during midday trading on Thursday, reaching $163.40. 3,949,890 shares of the company’s stock traded hands, compared to its average volume of 2,976,542. The company has a market cap of $91.52 billion, a price-to-earnings ratio of 35.82, a P/E/G ratio of 2.35 and a beta of 1.23. The stock’s 50 day simple moving average is $157.73 and its 200-day simple moving average is $147.46. The company has a quick ratio of 0.66, a current ratio of 0.90 and a debt-to-equity ratio of 0.37. Emerson Electric has a one year low of $122.64 and a one year high of $172.00.

Emerson Electric Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 13th will be given a $0.5950 dividend. This represents a $2.38 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, November 13th. This is a boost from Emerson Electric’s previous quarterly dividend of $0.5550. Emerson Electric’s dividend payout ratio is currently 48.58%.

Insider Buying and Selling

In related news, CEO Surendralal Karsanbhai sold 9,650 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $161.91, for a total value of $1,562,431.50. Following the completion of the transaction, the chief executive officer owned 271,743 shares of the company’s stock, valued at $43,997,909.13. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.23% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on EMR shares. Evercore reduced their target price on shares of Emerson Electric from $190.00 to $185.00 and set an “outperform” rating on the stock in a research report on Monday, August 31st. BNP Paribas Exane increased their price objective on Emerson Electric from $185.00 to $200.00 and gave the stock an “outperform” rating in a research note on Thursday. Weiss Ratings upgraded Emerson Electric from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Rothschild & Co Redburn lifted their target price on Emerson Electric from $165.00 to $180.00 in a research report on Thursday, August 6th. Finally, Morgan Stanley lowered their target price on Emerson Electric from $145.00 to $140.00 and set an “underweight” rating for the company in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $174.71.

Trending Headlines about Emerson Electric

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

• Positive Sentiment: Fiscal Q4 adjusted EPS was $1.86 versus the $1.85 consensus, while revenue of $5.20 billion topped estimates of $5.11 billion. Orders rose 14%, and Emerson forecast about 5% sales growth in fiscal 2027. Emerson Q4 results and outlook
• Positive Sentiment: Emerson raised its quarterly dividend 7.2%, to $0.595 per share, extending its long record of annual dividend increases. Dividend and FY27 outlook
• Positive Sentiment: Analysts lifted price targets: BNP Paribas Exane and Jefferies to $200, KeyCorp to $200, Bernstein to $196, and Wells Fargo to $180; the firms maintained positive ratings. Jefferies price target update Bernstein price target update
• Neutral Sentiment: A Seeking Alpha analysis cited LNG investment and reshoring as potential growth tailwinds, while noting that the stock’s valuation is rich. Analysis of Emerson’s growth tailwinds and valuation
• Negative Sentiment: The earnings beat and stronger orders were offset by reports describing the fiscal 2027 outlook as cautious. That guidance, alongside valuation concerns, may help explain why investors reacted negatively despite the solid results. Earnings beat and cautious outlook

Emerson Electric Company Profile

Emerson Electric Co (NYSE: EMR) is a global technology and engineering company that provides automation, control, and industrial technology solutions. Its offerings include measurement and analytical instruments, control systems, valves, regulators, software, and related services used to improve the safety, efficiency, and reliability of industrial operations.

The company serves customers across industries such as energy, chemicals, life sciences, food and beverage, manufacturing, and commercial and residential applications.