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Emerson Gears Up to Report Q1 Earnings: Here's What to Expect

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Key Takeaways

  • Emerson Electric is expected to post 4.2% revenue growth in Q1 FY26, with consensus sales at $4.35 billion.
  • EMR's Intelligent Devices segment may benefit from strength in power, automation and measurement markets.
  • Software and Control sales are projected up 5.1%, aided by AspenTech strength and power and process demand.

Emerson Electric Co. (EMR - Free Report) is likely to witness earnings and revenue growth when it reports first-quarter fiscal 2026 (ended Dec. 31, 2025) results on Feb. 3, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.35 billion, indicating growth of 4.2% from the prior-year quarter’s figure.

The consensus mark for earnings is pinned at $1.41 per share, which has remained steady in the past 30 days. The figure indicates a jump of 2.2% from the prior-year figure. The company’s bottom line matched the Zacks Consensus Estimate in the last reported quarter. EMR beat on earnings in three of the trailing four quarters and matched the mark in one, delivering an average surprise of 3.2%.

Let’s see how things have shaped up for Emerson prior to the announcement.

Factors Likely to Have Shaped EMR’s Quarterly Performance

Strength across Emerson’s final control business, driven by solid momentum in the power end markets, is likely to have benefited the top-line performance of its Intelligent Devices segment in the fiscal first quarter. Growth in the Discrete Automation business, driven by solid momentum in the Americas region, along with positive momentum in the Measurement & Analytical business, arising from strength across the North America and Asia, Middle East & Africa regions, is likely to aid the segment’s results. For the fiscal first quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $2.96 billion, indicating a 3.9% rise from the year-ago reported number.

Solid momentum in the Control Systems & Software business, driven by strength in the AspenTech business and power and process end markets, is likely to have augmented the performance of the Software and Control segment. For the fiscal first quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.42 billion, indicating a 5.1% rise from the year-ago reported number.

The company has always been focused on expanding its product offerings and market presence through buyouts. In March 2025, Emerson acquired the remaining shares of AspenTech, making it a wholly owned subsidiary. This move strengthened the company’s automation portfolio and enhanced its software-defined control capabilities. Also, in October 2023, Emerson completed the buyout of National Instruments for $8.2 billion. The buyout strengthened EMR’s global automation foothold, helping it expand into high-growth end markets, including semiconductor and electronics, transportation and electric vehicles and aerospace and defense. The buyouts are expected to have boosted EMR’s top line in the quarter.

However, escalating costs and expenses due to higher input costs and restructuring-related actions are likely to have affected EMR’s margin performance. Also, given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.

Emerson Electric Co. Price and EPS Surprise

Emerson Electric Co. Price and EPS Surprise

Emerson Electric Co. price-eps-surprise | Emerson Electric Co. Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Emerson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: EMR has an Earnings ESP of -0.04%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: EMR currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Xylem Inc. (XYL - Free Report) has an Earnings ESP of +0.88% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2025 results on Feb. 10.

Xylem’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.7%.

Kennametal Inc. (KMT - Free Report) has an Earnings ESP of +8.57% and a Zacks Rank of 1 at present. The company is scheduled to release second-quarter fiscal 2026 results on Feb. 4.

KMT’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 26.9%.

Watts Water Technologies, Inc. (WTS - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank of 2 at present. The company is slated to release fourth-quarter 2025 results on Feb. 11.

Watts Water’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.9%.

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