EMR · 10-K · 2026A · Full report
Gross Margin Drivers
EMERSON ELECTRIC CO · 2026-11-09 · Importance 40 · Surprise 42 · In source text
Fiscal 2026 gross profit increased to $10.128 billion from $9.519 billion, and gross margin rose 0.6 percentage points to 53.4%. Favorable price less net material inflation and $121 million of IEEPA tariff refunds benefited gross margin, while the timing of software renewals partially offset the improvement. The $121 million refund benefit was recorded in cost of sales after Emerson filed claims and received refunds during fiscal 2026.
Key facts
- Fiscal 2026 gross profit was $10,128 million versus $9,519 million in 2025, and gross margin rose 0.6 percentage points to 53.4%. source
- Emerson filed tariff refund claims and received $121 million in refunds during fiscal 2026, a benefit recorded in cost of sales. source
- Fiscal 2026 gross margin increased primarily because of favorable price less net material inflation and tariff refunds, partially offset by the timing of software renewals. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +0.6% | Fiscal 2026 gross profit was $10,128 million versus $9,519 million in 2025, and gross margin rose 0.6 percentage points to 53.4%. |