Emerson Electric 8-K
PositiveEarningsNew guidanceRestructuring
Long-cycle projects lifted underlying orders 14% Y/Y, with Software & Systems leading sales growth; FY2027 adjusted EPS guided to ≈$7.25
Filed 2026-11-04 06:53 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
FY2026 fourth-quarter and full-year results with an initial FY2027 outlook.
Long-cycle project activity in growth verticals drove underlying orders—trailing-three-month average growth excluding currency and significant acquisitions and divestitures—up 14% Y/Y in Q4. Net sales grew 7% Y/Y, with demand growth across all business groups and regions.
For FY2027, net sales growth is guided at ≈5%, vs FY2026’s +5%; underlying sales growth, which excludes currency and significant acquisitions and divestitures, is guided at ≈5% vs +4%. Non-GAAP adjusted EPS is guided at ≈$7.25 vs FY2026’s $6.59, an increase of 10%. Emerson cited robust backlog and favorable demand in growth verticals, and expects to return ≈$3.8B through repurchases and dividends.
Key Figures
| Metric | Q4 FY2026 | FY2026 |
|---|---|---|
| Net sales | $5.20B, +7% Y/Y | $18.98B, +5% Y/Y |
| Pretax earnings | $997M, +31% Y/Y | $3.49B, +20% Y/Y |
| Non-GAAP adjusted segment EBITA | $1.51B, +13% Y/Y | $5.36B, +8% Y/Y |
| Net earnings attributable to common stockholders | $744M, +22% Y/Y | $2.69B, +19% Y/Y |
| Diluted EPS | $1.33, +24% Y/Y | $4.79, +20% Y/Y |
| Non-GAAP adjusted EPS | $1.86, +15% Y/Y | $6.59, +10% Y/Y |
| Operating cash flow | $1.08B, +6% Y/Y | $3.98B, +8% Y/Y |
| Non-GAAP free cash flow | $916M, +9% Y/Y | $3.54B, +9% Y/Y |
| Underlying orders | +14% Y/Y | +9% Y/Y |
| Underlying sales | +7% Y/Y | +4% Y/Y |
- Software & Systems led Q4 segment growth: sales rose 14% Y/Y to $1.71B, and adjusted segment EBITA increased to $553M from $414M; its adjusted margin was 32.3% vs 27.4%. For FY2026, Test & Measurement sales grew 17% Y/Y and adjusted segment EBITA was $503M vs $375M.
- FY2026 adjusted EPS excludes $1.013B of intangible amortization ($1.38 per share) and $227M of restructuring and related costs ($0.36 per share).
- FY2026 share repurchases were $1.00B vs $1.17B a year earlier; diluted average shares outstanding declined 0.8% Y/Y to 562M. At 9/30/2026, cash and equivalents were $1.81B and total debt was $12.18B.
- Emerson raised its quarterly dividend 7% to $0.595 per share, payable 12/10/2026 to shareholders of record 11/13/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net sales growth | Q1 FY2027 | ≈5% | — | Initiated |
| Net sales growth | FY2027 | ≈5% | — | Initiated |
| Underlying sales growth (non-GAAP) | Q1 FY2027 | ≈5% | — | Initiated |
| Underlying sales growth (non-GAAP) | FY2027 | ≈5% | — | Initiated |
| GAAP EPS | Q1 FY2027 | $1.19-$1.23 | — | Initiated |
| GAAP EPS | FY2027 | ≈$5.70 | — | Initiated |
| Intangible amortization per share | Q1 FY2027 | ≈$0.35 | — | Initiated |
| Intangible amortization per share | FY2027 | ≈$1.41 | — | Initiated |
| Restructuring and related costs per share | Q1 FY2027 | ≈$0.04 | — | Initiated |
| Restructuring and related costs per share | FY2027 | ≈$0.14 | — | Initiated |
| Non-GAAP adjusted EPS | Q1 FY2027 | $1.58-$1.62 | — | Initiated |
| Non-GAAP adjusted EPS | FY2027 | ≈$7.25 | — | Initiated |
| Operating cash flow | FY2027 | $4.3B-$4.4B | — | Initiated |
| Non-GAAP free cash flow | FY2027 | $3.8B-$3.9B | — | Initiated |
| Share repurchases | Q1 FY2027 | ≈$1.5B | — | Initiated |
| Share repurchases | FY2027 | ≈$2.5B | — | Initiated |
| Dividends | FY2027 | ≈$1.3B | — | Initiated |
The summary is written by an AI model reading the filing.
Model 005 · prompt v175 · 2026-11-04 15:35:51Z