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Why Is Emerson Electric (EMR) Up 3.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Emerson Electric (EMR - Free Report) . Shares have added about 3.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Emerson Electric due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Emerson Electric Co. before we dive into how investors and analysts have reacted as of late.
Emerson Q4 Earnings Match Estimates, Software and Control Sales Rise
Emerson 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.
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’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.
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%.
It anticipates adjusted earnings per share to be approximately $1.40.
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%.
It 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Emerson Electric has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Emerson Electric has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Emerson Electric is part of the Zacks Manufacturing - Electronics industry. Over the past month, A.O. Smith (AOS - Free Report) , a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended September 2025 more than a month ago.
A.O. Smith reported revenues of $942.5 million in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $0.94 for the same period compares with $0.82 a year ago.
A.O. Smith is expected to post earnings of $0.84 per share for the current quarter, representing a year-over-year change of -1.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for A.O. Smith. Also, the stock has a VGM Score of B.
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Why Is Emerson Electric (EMR) Up 3.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Emerson Electric (EMR - Free Report) . Shares have added about 3.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Emerson Electric due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Emerson Electric Co. before we dive into how investors and analysts have reacted as of late.
Emerson Q4 Earnings Match Estimates, Software and Control Sales Rise
Emerson 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.
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’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.
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%.
It anticipates adjusted earnings per share to be approximately $1.40.
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%.
It 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Emerson Electric has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Emerson Electric has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Emerson Electric is part of the Zacks Manufacturing - Electronics industry. Over the past month, A.O. Smith (AOS - Free Report) , a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended September 2025 more than a month ago.
A.O. Smith reported revenues of $942.5 million in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $0.94 for the same period compares with $0.82 a year ago.
A.O. Smith is expected to post earnings of $0.84 per share for the current quarter, representing a year-over-year change of -1.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for A.O. Smith. Also, the stock has a VGM Score of B.