Emerson Electric (NYSE:EMR) Announces Earnings Results

07 May 2026, 13:56 by Teresa Graham · The Cerbat Gem

Emerson Electric (NYSE:EMR – Get Free Report) issued its earnings results on Tuesday. The industrial products company reported $1.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.53 by $0.01, FiscalAI reports. Emerson Electric had a net margin of 13.35% and a return on equity of 17.22%. The firm had revenue of $4.56 billion for the quarter, compared to analysts’ expectations of $4.59 billion. During the same quarter last year, the company posted $1.48 earnings per share. Emerson Electric’s revenue was up 2.9% on a year-over-year basis. Emerson Electric updated its FY 2026 guidance to 6.450-6.550 EPS and its Q3 2026 guidance to 1.650-1.700 EPS.

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

The conflict in the Middle East caused an approximate 1-point hit to underlying sales (~$50M in Q2) and Emerson expects about $100M more disruption this year, though operations are largely restored and management sees a ~$100M rebuild/restart opportunity over several quarters.
Emerson highlighted strong industrial software momentum — ACV reached $1.64 billion (up 9% YoY) and the company reiterates ACV growth of 10%+ for 2026, positioning its AI-enabled offerings (e.g., Aspen Hybrid Models) as a differentiator for mission-critical applications.
Order and project pipelines remain healthy with underlying orders up 5% in Q2, backlog up 9% to $8.2 billion, a project funnel of $11.2 billion, and ~$450M of quarter wins (85% from growth verticals such as power, life sciences and LNG).
Financial execution beat expectations — adjusted segment EBITDA margin was 27.6%, Q2 adjusted EPS was $1.54, the full-year adjusted EPS guide was raised to $6.45–$6.55, and Emerson has repurchased $542M YTD toward a planned ~$2.2B capital return.

Emerson Electric Stock Performance

EMR stock traded down $6.09 during trading on Thursday, reaching $141.91. 1,468,929 shares of the company’s stock were exchanged, compared to its average volume of 3,292,038. The company has a quick ratio of 0.62, a current ratio of 0.84 and a debt-to-equity ratio of 0.37. The firm has a market cap of $79.75 billion, a PE ratio of 32.77, a P/E/G ratio of 2.21 and a beta of 1.26. The company’s fifty day moving average price is $138.70 and its 200-day moving average price is $139.18. Emerson Electric has a 1-year low of $109.53 and a 1-year high of $165.15.

Emerson Electric Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 15th will be given a dividend of $0.555 per share. This represents a $2.22 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Friday, May 15th. Emerson Electric’s payout ratio is 51.27%.

Insider Activity

In other news, Director Matthew S. Levatich sold 1,476 shares of the company’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $162.16, for a total value of $239,348.16. Following the completion of the sale, the director owned 24,349 shares in the company, valued at $3,948,433.84. This represents a 5.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Nicholas J. Piazza sold 6,703 shares of the company’s stock in a transaction on Monday, February 9th. The shares were sold at an average price of $159.07, for a total value of $1,066,246.21. Following the completion of the sale, the vice president owned 31,664 shares of the company’s stock, valued at approximately $5,036,792.48. This trade represents a 17.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 13,879 shares of company stock worth $2,116,818 over the last 90 days. 0.23% of the stock is currently owned by company insiders.

Institutional Trading of Emerson Electric

Several institutional investors have recently modified their holdings of EMR. Brighton Jones LLC increased its position in Emerson Electric by 74.1% in the 4th quarter. Brighton Jones LLC now owns 11,392 shares of the industrial products company’s stock worth $1,412,000 after purchasing an additional 4,850 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Emerson Electric in the 2nd quarter worth about $203,000. EFG International AG acquired a new position in Emerson Electric in the 4th quarter worth about $56,000. Prosperity Bancshares Inc acquired a new position in Emerson Electric in the 4th quarter worth about $57,000. Finally, Golden State Wealth Management LLC increased its position in Emerson Electric by 29.4% in the 4th quarter. Golden State Wealth Management LLC now owns 488 shares of the industrial products company’s stock worth $65,000 after purchasing an additional 111 shares during the last quarter. Institutional investors and hedge funds own 74.30% of the company’s stock.

Analysts Set New Price Targets

EMR has been the topic of a number of recent research reports. Jefferies Financial Group initiated coverage on shares of Emerson Electric in a report on Tuesday, March 31st. They issued a “buy” rating and a $175.00 target price on the stock. Evercore lifted their price target on Emerson Electric from $170.00 to $185.00 and gave the company an “outperform” rating in a report on Thursday, February 5th. HSBC lifted their target price on Emerson Electric from $165.00 to $170.00 and gave the company a “buy” rating in a research note on Thursday, February 5th. Daiwa Securities Group boosted their price target on Emerson Electric from $153.00 to $177.00 and gave the stock an “outperform” rating in a research report on Thursday, February 5th. Finally, Robert W. Baird boosted their price target on Emerson Electric from $143.00 to $164.00 and gave the stock a “neutral” rating in a research report on Friday, January 16th. Twelve equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $163.90.

Get Our Latest Stock Report on Emerson Electric

Emerson Electric News Summary

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

Positive Sentiment: Company reaffirmed FY2026 guidance (EPS $6.45–6.55) and gave Q3 EPS guidance of $1.65–1.70; reported EPS that slightly beat consensus and cited backlog/orders that support momentum into the back half of the year. Emerson Reports Second Quarter 2026 Results; Updates 2026 Outlook
Positive Sentiment: Royal Bank of Canada raised its price target to $169 and reiterated an “outperform” rating, signaling investor upside expectations from RBC’s view. RBC price target raise
Positive Sentiment: Macro/strategic narrative: commentary highlighting Emerson’s exposure to the long-term electrification megatrend, which supports multiyear organic growth opportunities. Emerson Electric Sees Long-Tailed Growth In The Electrification Megatrend
Positive Sentiment: Board/corporate governance update — Apple GC Jennifer Newstead elected to the board, which investors often view as a governance/oversight positive. Jennifer Newstead to Join Emerson’s Board of Directors
Neutral Sentiment: Barclays nudged its target to $144 and kept an “equal weight” rating — a modestly cautious stance versus RBC’s more bullish call. Barclays adjusts price target on Emerson Electric
Neutral Sentiment: Company declared a quarterly cash dividend of $0.555 (ex-dividend May 15), a stable income item but modest yield (~1.5%). Dividend and results
Negative Sentiment: Revenue missed Street estimates ($4.56B vs. $4.59B) and Zacks/other coverage pointed to sales weakness driven in part by Middle East disruptions — a near-term headwind that likely pressured sentiment. Emerson Q2 Earnings in Line, Sales Miss on Middle East Disruptions
Negative Sentiment: Some analyst/media pieces emphasize limitations to near-term upside (e.g., articles arguing Emerson is not positioned as an AI-infrastructure beneficiary), which can temper excitement and valuation multiple expansion. Emerson Electric: Not An AI Infrastructure Company

About Emerson Electric

(Get Free Report)

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.