EMR · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

EMERSON ELECTRIC CO · 2026-08-04 · Importance 54 · Surprise 40 · No source text

Nine-month pretax earnings increased $346 million to $2.484 billion, and pretax margin expanded 1.8 percentage points to 18.0%. Software & Systems earnings increased $109 million to $762 million, while Intelligent Devices earnings increased $71 million; Safety & Productivity earnings decreased $7 million. Software & Systems margin rose 1.4 percentage points to 16.6%, driven by sales leverage, cost-reduction savings and lower intangibles amortization, partly offset by software-renewal timing. Safety & Productivity margin declined 1.1 percentage points to 18.6% because of higher restructuring costs and deleverage on lower volume.

Key facts

• Q3 FY2026 pretax earnings from continuing operations: $916, increased $182, up 25 percent compared with the prior year. source
• Nine months earnings from continuing operations attributable to common stockholders: $1,941, up 18 percent; diluted EPS $3.45, up 19 percent compared with $2.91 in 2025. source
• Earnings from continuing operations attributable to common stockholders in Q3 FY2026 were $718, up 24 percent. source
• Q3 FY2026 adjusted EBITA from continuing operations: $1,303 and adjusted EBITA margin 26.7 percent, up 0.7 percentage points from prior year. source
• Nine months pretax earnings: $2,484, increased $346 compared with prior year. source
• Nine months adjusted EBITA from continuing operations: $3,639 and adjusted EBITA margin 26.4 percent, up 0.4 percentage points. source
• Diluted earnings per share from continuing operations in Q3 FY2026 were $1.28, up 24 percent compared with $1.03 in the prior year. source
• Adjusted diluted earnings per share from continuing operations in Q3 FY2026 were $1.71, up 13 percent compared with $1.52 in the prior year. source

Impact estimates