Emerson (EMR) quarter year Emerson Electric Co. Financial Results Summary
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Emerson (EMR) Q1 2026 Financial Results Summary
On February 3, 2026, Emerson (NYSE: EMR) reported its financial results for the first quarter ended December 31, 2025, and provided an updated outlook for the fiscal year 2026. The company declared a quarterly cash dividend of $0.555 per share, payable on March 10, 2026, to stockholders of record as of February 13, 2026.
Key Financial Metrics
- Net Sales: Increased by 4% to $4,346 million from $4,175 million in Q1 2025.
- Underlying Sales: Growth of 2% compared to the previous year.
- Pretax Earnings: Remained flat at $775 million.
- Margin: Decreased by 80 basis points to 17.8% from 18.6% in Q1 2025.
- Adjusted Segment EBITA: Increased by 3% to $1,203 million from $1,169 million.
- Adjusted Segment EBITA Margin: Decreased by 30 basis points to 27.7% from 28.0% in Q1 2025.
- GAAP Earnings Per Share (EPS): Increased by 5% to $1.07 from $1.02.
- Adjusted Earnings Per Share: Increased by 6% to $1.46 from $1.38.
- Operating Cash Flow: Decreased by 10% to $699 million from $777 million.
- Free Cash Flow: Decreased by 13% to $602 million from $694 million.
Management Commentary
- Emerson’s President and CEO, Lal Karsanbhai, highlighted that the company met its sales commitments and exceeded profitability expectations.
- The report noted strong underlying orders growth for four consecutive quarters, particularly in automation technology sectors such as Software & Systems, with significant demand observed in North America, India, and the Middle East & Africa.
- The company is also focusing on advancing innovation, introducing new products, and executing key programs from their 2025 investor conference.
2026 Outlook
- The company plans to return about $2.2 billion to shareholders through $1 billion in share repurchases and $1.2 billion in dividends.
- Net Sales Growth for Q2 2026 is projected at 3%-4%, with a full year target of approximately 5.5%.
- Underlying Sales Growth is expected between 1%-2% for Q2, with a full year outlook of about 4%.
- Earnings Per Share for Q2 is forecasted at $1.06 – $1.11 and for the full year $4.78 – $4.93.
- Adjusted Earnings Per Share estimates are $1.50 – $1.55 for Q2 and $6.40 – $6.55 for the full year.
- Operating Cash Flow for the year is projected at $4.0B – $4.1B, while Free Cash Flow is expected to be around $3.5B – $3.6B.
Share Repurchase and Dividend
- Emerson declared a quarterly cash dividend of $0.555 per share.
- The company announced a share repurchase program aiming for approximately $1 billion in buybacks during the fiscal year.
This report encapsulates Emerson’s operational performance and strategic direction as it navigates through Q1 2026, demonstrating resilience in profitability despite some declines in cash flow metrics.
Table 1: CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
| Cost and expenses | Quarter Ended Dec 31 | 2024 | 2025 |
|---|---|---|---|
| Cost of sales | 4,175 | 4,346 | |
| SG&A expenses | 1,940 | 2,035 | |
| Other deductions, net | 1,224 | 1,242 | |
| Interest expense, net | 228 | 204 | |
| Earnings before income taxes | 8 | 90 | |
| Income taxes | 775 | 775 | |
| Net earnings | 182 | 169 | |
| Less: Noncontrolling interests in subsidiaries | 593 | 606 | |
| Net earnings common stockholders | 8 | 1 | |
| Diluted avg. shares outstanding | 585 | 605 | |
| Diluted earnings per share common stockholders | 571.1 | 564.1 | |
| Diluted earnings per common share | $ | 1.02 | 1.07 |
Table 2: CONSOLIDATED BALANCE SHEETS (DOLLARS IN MILLIONS, UNAUDITED)
| Assets | Sept 30, 2025 | Dec 31, 2025 |
|---|---|---|
| Cash and equivalents | $1,544 | $1,748 |
| Receivables, net | 3,101 | 2,972 |
| Inventories | 2,213 | 2,353 |
| Other current assets | 1,725 | 1,770 |
| Total current assets | 8,583 | 8,843 |
| Property, plant & equipment, net | 2,871 | 2,867 |
| Goodwill | 18,193 | 18,182 |
| Other intangibles | 9,458 | 9,205 |
| Other | 2,859 | 2,842 |
| Total assets | $41,964 | $41,939 |
| Liabilities and equity | ||
| Short-term borrowings and current maturities of long-term debt | $4,797 | $5,832 |
| Accounts payable | 1,384 | 1,339 |
| Accrued expenses | 3,616 | 3,349 |
| Total current liabilities | 9,797 | 10,520 |
| Long-term debt | 8,319 | 7,575 |
| Other liabilities | 3,550 | 3,552 |
| Equity | ||
| Common stockholders’ equity | 20,282 | 20,277 |
| Noncontrolling interests in subsidiaries | 16 | 15 |
| Total equity | 20,298 | 20,292 |
| Total liabilities and equity | $41,964 | $41,939 |