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Emerson's Intelligent Devices Segment Gains Momentum: Can It Sustain?
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Key Takeaways
Emerson's Final Control business sales rose 2% to $1.49B in fiscal Q2, aided by power and LNG demand.
EMR's Sensors business grew 2% to $1.02B, supported by strong performance in the Americas.
Emerson expects fiscal 2026 net sales growth of about 4.5%, with underlying sales up roughly 3%.
Emerson Electric Co. (EMR - Free Report) is benefiting from the solid momentum in its Intelligent Devices segment. Within the segment, the company is witnessing strength in the Final Control business, supported by a strong demand environment across power and LNG end markets. Sales from this business increased 2% year over year to $1.49 billion in the second quarter of fiscal 2026 (ended March 2026).
Robust growth across the Americas region is aiding Emerson’s Sensors business. Sales from the business rose 2% year over year to $1.02 billion in the fiscal second quarter. However, softness in Europe and China, owing to a tepid demand environment, along with geopolitical tensions in the Middle East, remains concerning.
Apart from this, EMR’s Software and Systems segment is well positioned to benefit from solid growth in its AspenTech unit and strength in Test & Measurement and Control Systems & Software businesses. Given the strength across the majority of its businesses, Emerson expects net sales to increase approximately 4.5% year over year in fiscal 2026 (ended September 2026). Underlying sales are also anticipated to grow about 3% year over year in the same period.
Segment Snapshot of EMR’s Peers
As one of Emerson’s peers, Ingersoll Rand Inc. (IR - Free Report) is benefiting from strong orders across its product portfolio of industrial vacuums, blowers and compressors, which drove the Industrial Technologies & Services segment. The segment’s revenues totaled $1.45 billion, up 6.8% year over year in the first quarter of 2026.
Another peer, Flowserve Corp. (FLS - Free Report) , is experiencing softness in the Pump Division segment. Softness in the original equipment business due to lower capital spending by customers and delays in large project awards affected the Flowserve Pump Division segment’s results. Its revenues totaled $744.5 million in the first quarter, down 4.9% year over year.
EMR’s Price Performance, Valuation and Estimates
Shares of Emerson have gained 2.7% in the past three months compared with the industry’s growth of 14.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, EMR is trading at a forward price-to-earnings ratio of 20.51X, below the industry’s average of 24.72X. Emerson carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EMR’s fiscal 2026 earnings has inched down 0.2% over the past 60 days.
View the Zacks #1 Rank List
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Emerson's Intelligent Devices Segment Gains Momentum: Can It Sustain?
Key Takeaways
Emerson Electric Co. (EMR - Free Report) is benefiting from the solid momentum in its Intelligent Devices segment. Within the segment, the company is witnessing strength in the Final Control business, supported by a strong demand environment across power and LNG end markets. Sales from this business increased 2% year over year to $1.49 billion in the second quarter of fiscal 2026 (ended March 2026).
Robust growth across the Americas region is aiding Emerson’s Sensors business. Sales from the business rose 2% year over year to $1.02 billion in the fiscal second quarter. However, softness in Europe and China, owing to a tepid demand environment, along with geopolitical tensions in the Middle East, remains concerning.
Apart from this, EMR’s Software and Systems segment is well positioned to benefit from solid growth in its AspenTech unit and strength in Test & Measurement and Control Systems & Software businesses. Given the strength across the majority of its businesses, Emerson expects net sales to increase approximately 4.5% year over year in fiscal 2026 (ended September 2026). Underlying sales are also anticipated to grow about 3% year over year in the same period.
Segment Snapshot of EMR’s Peers
As one of Emerson’s peers, Ingersoll Rand Inc. (IR - Free Report) is benefiting from strong orders across its product portfolio of industrial vacuums, blowers and compressors, which drove the Industrial Technologies & Services segment. The segment’s revenues totaled $1.45 billion, up 6.8% year over year in the first quarter of 2026.
Another peer, Flowserve Corp. (FLS - Free Report) , is experiencing softness in the Pump Division segment. Softness in the original equipment business due to lower capital spending by customers and delays in large project awards affected the Flowserve Pump Division segment’s results. Its revenues totaled $744.5 million in the first quarter, down 4.9% year over year.
EMR’s Price Performance, Valuation and Estimates
Shares of Emerson have gained 2.7% in the past three months compared with the industry’s growth of 14.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, EMR is trading at a forward price-to-earnings ratio of 20.51X, below the industry’s average of 24.72X. Emerson carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EMR’s fiscal 2026 earnings has inched down 0.2% over the past 60 days.
Image Source: Zacks Investment Research
Emerson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.