EMR · 10-K · 2026A · Full report

Interest Rate Environment

EMERSON ELECTRIC CO · 2026-11-09 · Importance 35 · Surprise 48

At September 30, 2026, the U.S. pension-plan discount rate was 6.41%, up from 5.27% in 2025. A 0.25 percentage-point decrease in U.S. and non-U.S. discount rates would have increased the total projected benefit obligation by $100 and 2026 mark-to-market expense by $10, while decreasing 2027 pension expense by $5. A 0.25 percentage-point decrease in expected plan-asset returns would increase 2027 pension expense by $10.

Key facts

• A 0.25 percentage point decrease in U.S. and non-U.S. discount rates would increase Emerson's total projected benefit obligation at September 30, 2026 by $100, increase 2026 mark-to-market expense by $10, and decrease 2027 pension expense by $5. source
• A hypothetical 10% increase in interest rates would not create material potential losses in Emerson's future earnings, fair value, or cash flows, based on its sensitivity analysis. source
• At year-end 2026, the discount rate for Emerson's U.S. pension plans was 6.41 percent, compared with 5.27 percent in 2025. source