EMR · 10-K · 2026A · Full report

Operating Expense Trends

EMERSON ELECTRIC CO · 2026-11-09 · Importance 36 · Surprise 14

Fiscal 2026 SG&A expense increased $193 million to $5.296 billion, while SG&A declined 0.4 percentage points as a share of sales to 27.9%. Cost-reduction savings and leverage on higher sales drove the lower expense ratio despite the dollar increase. SG&A included a $30 million contribution to Emerson’s charitable trust funded from part of the tariff refunds.

Key facts

• Fiscal 2026 SG&A expense was $5,296 million, up $193 million from 2025, while SG&A as a percentage of sales decreased 0.4 percentage points to 27.9%. source
• In fiscal 2026, Emerson changed its accounting for actuarial gains and losses on defined benefit pension and other postretirement benefit plans to mark-to-market accounting, recognizing gains and losses in earnings in the period they arise. source
• Fiscal 2026 SG&A included a $30 million contribution to Emerson's charitable trust, funded from a portion of tariff refunds. source
• As of October 1, 2023, the accounting change decreased retained earnings by $251 and increased accumulated other comprehensive income (loss) by $251. source
• The mark-to-market method recognizes actuarial gains and losses annually in the fourth quarter based on the plans' September 30 annual measurement date; the accounting change was applied retrospectively to all periods presented. source
• Emerson's reserve for asbestos litigation is recorded on an undiscounted basis and is based on projected claims through 2065. source
• At September 30, 2026, Emerson had no known contingent liabilities management believed would be material in relation to its financial statements and no material commitments outside the normal course of business. source