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Emerson Q4 Earnings Match Estimates, Software and Control Sales Rise
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Key Takeaways
Emerson's Q4 adjusted EPS rose 9% to $1.62, matching estimates on 5% higher net sales.
Software & Control segment sales climbed 9% year over year, led by Test & Measurement growth.
FY26 outlook calls for 5.5% sales growth and adjusted EPS of $6.35-$6.55 with robust cash flow.
Emerson Electric Co. (EMR - Free Report) reported fourth-quarter fiscal 2025 (ended Sept. 30, 2025) adjusted earnings of $1.62 per share, which were in line with the Zacks Consensus Estimate. The bottom line increased 9% year over year.
Emerson’s net sales of $4.89 billion beat the consensus estimate of $4.88 billion. The top line increased 5% year over year, driven by the solid performance of the Software and Control segment. The company’s underlying sales were up 4% year over year.
EMR Business Segments’ Performance
Effective from the first quarter of fiscal 2023, the company started reporting under two segments, namely Intelligent Devices and Software & Control.
The Intelligent Devices segment’s net sales were $3.40 billion, up 4% year over year. Our estimate was $3.43 billion. The segment consists of four subgroups, namely Final Control, Measurement & Analytical, Discrete Automation and Safety & Productivity.
Final Control’s sales increased 4% year over year to $1.22 billion. Measurement & Analytical generated sales of $1.15 billion, up 3% year over year. Discrete Automation’s sales totaled $676 million, reflecting an increase of 5% on a year-over-year basis. Safety & Productivity’s sales increased 2% year over year to $360 million.
The Software and Control Automation Solutions segment generated net sales of $1.48 billion, up 9% year over year. Our estimate was $1.51 billion. The segment consists of two subgroups, namely Control Systems & Software and Test & Measurement.
Control Systems & Software reported sales of $1.07 billion, reflecting an increase of 7% year over year. Test & Measurement sales were $408 million, increasing 13% year over year.
Emerson Electric Co. Price, Consensus and EPS Surprise
The cost of sales increased 3.9% year over year to $2.34 billion. The pretax earnings margin was 16.4% compared with 14.7% in the year-ago period. Adjusted EBITA margin was 27.5% compared with 26.2% in the year-earlier quarter. Selling, general and administrative expenses increased 1.1% year over year to $1.33 billion.
EMR’s Balance Sheet & Cash Flow
Exiting the fiscal fourth quarter, Emerson had cash and cash equivalents of $1.54 billion compared with $3.6 billion at the end of fiscal 2024 (ended September 2024). Long-term debt was $8.32 billion compared with $7.16 billion at the end of fiscal 2024.
In the same period, the company generated net cash of $3.10 billion from operating activities, down 7% year over year. Capital expenditure was $431 million, up from $419 million in the year-ago period. Emerson paid out dividends of $1.19 billion and repurchased shares worth $1.17 billion in the same period.
Emerson’s Q1 Fiscal 2026 Outlook
For the first quarter of fiscal 2026 (ending September 2026), Emerson anticipates year-over-year net sales growth to be approximately 4% and underlying sales growth to be approximately 2%.
EMR anticipates adjusted earnings per share to be approximately $1.40.
EMR’s FY26 Outlook
Emerson currently anticipates net sales growth of approximately 5.5% from the year-earlier level. Underlying sales are expected to rise approximately 4%.
EMR projects earnings per share to be $4.73-$4.93. Adjusted earnings per share are estimated to be $6.35-$6.55. The company expects operating cash flow to be $4.0-$4.1 billion. Free cash flow is estimated to be about $3.5-$3.6 billion.
EMR’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.
Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.
Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.
Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.
Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.
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Emerson Q4 Earnings Match Estimates, Software and Control Sales Rise
Key Takeaways
Emerson Electric Co. (EMR - Free Report) reported fourth-quarter fiscal 2025 (ended Sept. 30, 2025) adjusted earnings of $1.62 per share, which were in line with the Zacks Consensus Estimate. The bottom line increased 9% year over year.
Emerson’s net sales of $4.89 billion beat the consensus estimate of $4.88 billion. The top line increased 5% year over year, driven by the solid performance of the Software and Control segment. The company’s underlying sales were up 4% year over year.
EMR Business Segments’ Performance
Effective from the first quarter of fiscal 2023, the company started reporting under two segments, namely Intelligent Devices and Software & Control.
The Intelligent Devices segment’s net sales were $3.40 billion, up 4% year over year. Our estimate was $3.43 billion. The segment consists of four subgroups, namely Final Control, Measurement & Analytical, Discrete Automation and Safety & Productivity.
Final Control’s sales increased 4% year over year to $1.22 billion. Measurement & Analytical generated sales of $1.15 billion, up 3% year over year. Discrete Automation’s sales totaled $676 million, reflecting an increase of 5% on a year-over-year basis. Safety & Productivity’s sales increased 2% year over year to $360 million.
The Software and Control Automation Solutions segment generated net sales of $1.48 billion, up 9% year over year. Our estimate was $1.51 billion. The segment consists of two subgroups, namely Control Systems & Software and Test & Measurement.
Control Systems & Software reported sales of $1.07 billion, reflecting an increase of 7% year over year. Test & Measurement sales were $408 million, increasing 13% year over year.
Emerson Electric Co. Price, Consensus and EPS Surprise
Emerson Electric Co. price-consensus-eps-surprise-chart | Emerson Electric Co. Quote
Emerson’s Margin Details
The cost of sales increased 3.9% year over year to $2.34 billion. The pretax earnings margin was 16.4% compared with 14.7% in the year-ago period. Adjusted EBITA margin was 27.5% compared with 26.2% in the year-earlier quarter. Selling, general and administrative expenses increased 1.1% year over year to $1.33 billion.
EMR’s Balance Sheet & Cash Flow
Exiting the fiscal fourth quarter, Emerson had cash and cash equivalents of $1.54 billion compared with $3.6 billion at the end of fiscal 2024 (ended September 2024). Long-term debt was $8.32 billion compared with $7.16 billion at the end of fiscal 2024.
In the same period, the company generated net cash of $3.10 billion from operating activities, down 7% year over year. Capital expenditure was $431 million, up from $419 million in the year-ago period. Emerson paid out dividends of $1.19 billion and repurchased shares worth $1.17 billion in the same period.
Emerson’s Q1 Fiscal 2026 Outlook
For the first quarter of fiscal 2026 (ending September 2026), Emerson anticipates year-over-year net sales growth to be approximately 4% and underlying sales growth to be approximately 2%.
EMR anticipates adjusted earnings per share to be approximately $1.40.
EMR’s FY26 Outlook
Emerson currently anticipates net sales growth of approximately 5.5% from the year-earlier level. Underlying sales are expected to rise approximately 4%.
EMR projects earnings per share to be $4.73-$4.93. Adjusted earnings per share are estimated to be $6.35-$6.55. The company expects operating cash flow to be $4.0-$4.1 billion. Free cash flow is estimated to be about $3.5-$3.6 billion.
EMR’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.
Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.
Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.
Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.
Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.