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

Emerson Electric (NYSE:EMR) posted its quarterly earnings data on Wednesday. The industrial products company reported $1.86 EPS for the quarter, topping the consensus estimate of $1.85 by $0.01, FiscalAI reports. Emerson Electric had a return on equity of 18.08% and a net margin of 14.15%. The company had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.11 billion. During the same period in the previous year, the business earned $1.62 EPS. Emerson Electric’s quarterly revenue was up .0% on a year-over-year basis.

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 0.1%

NYSE:EMR traded down $0.22 during midday trading on Friday, hitting $162.39. 1,664,457 shares of the company were exchanged, compared to its average volume of 2,980,247. The company has a current ratio of 0.94, a quick ratio of 0.66 and a debt-to-equity ratio of 0.36. Emerson Electric has a fifty-two week low of $122.64 and a fifty-two week high of $172.00. The company has a market capitalization of $90.95 billion, a PE ratio of 33.94, a price-to-earnings-growth ratio of 2.41 and a beta of 1.23. The company has a fifty day simple moving average of $157.82 and a 200 day simple moving average of $147.53.

Emerson Electric Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 13th will be given a dividend of $0.5950 per share. The ex-dividend date is Friday, November 13th. This represents a $2.38 annualized dividend and a dividend yield of 1.5%. This is a boost from Emerson Electric’s previous quarterly dividend of $0.5550. Emerson Electric’s payout ratio is presently 49.79%.

Insider Activity

In other news, CEO Surendralal Karsanbhai sold 9,650 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $161.91, for a total value of $1,562,431.50. Following the completion of the sale, the chief executive officer directly owned 271,743 shares of the company’s stock, valued at approximately $43,997,909.13. This represents a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.23% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

EMR has been the topic of several recent analyst reports. HSBC upped their price target on Emerson Electric from $170.00 to $180.00 in a research note on Thursday, August 6th. Wall Street Zen raised Emerson Electric from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Citigroup boosted their price objective on shares of Emerson Electric from $182.00 to $198.00 and gave the company a “buy” rating in a report on Thursday. Evercore lowered their target price on shares of Emerson Electric from $190.00 to $185.00 and set an “outperform” rating for the company in a research note on Monday, August 31st. Finally, Morgan Stanley dropped their price target on shares of Emerson Electric from $145.00 to $140.00 and set an “underweight” rating for the company in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $175.38.

More Emerson Electric News

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

• Positive Sentiment: Fiscal Q4 adjusted EPS came in at $1.86, just above the $1.85 estimate, while orders rose 14%. Emerson also indicated expected growth in fiscal 2027, supporting the view that demand is strengthening. Emerson Electric Q4 earnings beat as orders jump 14%
• Positive Sentiment: Several firms raised their targets and retained bullish ratings. Citigroup moved its target to $198; BNP Paribas Exane and KeyCorp set targets of $200, while RBC and Bernstein raised theirs to $196. The revisions signal stronger analyst confidence in EMR’s potential. Emerson Electric Stock: Analyst Estimates & Ratings
• Positive Sentiment: Emerson increased its quarterly dividend 7.2% to $0.595 per share, extending its annual dividend-growth streak to 71 years. That supports its appeal to income-focused investors, though the yield is about 1.4%. Emerson Electric Sees Growth In FY27; Boosts Dividend 7%
• Neutral Sentiment: Management’s FY2027 outlook points to growth, but some coverage characterized the outlook as cautious, leaving room for investors to weigh the stronger orders against uncertainty about the pace of future expansion. Emerson Electric beats estimates, issues cautious outlook
• Negative Sentiment: Valuation may limit upside: one analysis described the stock’s multiple as rich and noted that its recent gains have compressed the dividend yield. Morgan Stanley was also reported to have issued a pessimistic forecast. Emerson Electric: LNG And Reshoring Tailwinds Justify Buying Despite A Rich Multiple

About Emerson Electric

Emerson Electric Co is a global technology and engineering company focused on automation. It develops products and systems that help industrial and commercial customers monitor and control operations, including measurement instruments, control systems, valves, actuators, and industrial software.

The company serves customers across industries and regions worldwide. Its portfolio includes technologies for process and factory automation, as well as software used to design, operate, and optimize industrial facilities.

Founded in 1890 and headquartered in St.