EMR · 10-Q · 2026Q2

EMERSON ELECTRIC CO

Filed 2026-08-04 · Technology · View original filing on EDGAR

Ranked Events

• Interest Rate and Refinancing ExposureImportance 83 · Surprise 82
  Net interest expense increased $113 million year over year to $258 million for the first nine months of fiscal 2026. The increase was attributed to higher short-term borrowings and long-term debt used to fund the…
• Guidance / OutlookImportance 78 · Surprise 50
  For fiscal 2026, management expects consolidated net sales to increase approximately 5 percent and underlying sales to increase approximately 3.5 percent, excluding a 1.5 percent favorable foreign currency translation…
• Income Tax Rate ChangesImportance 69 · Surprise 50
  Nine-month income taxes were $542 million versus $536 million, while the effective tax rate declined to 22% from 25%. The One Big Beautiful Bill Act increased the current-year effective tax rate by approximately 1…
• Operating Expense TrendsImportance 65 · Surprise 48
  Nine-month SG&A increased $129 million to $3.9 billion, while SG&A declined to 28.3% of sales from 28.7%. The lower ratio reflected savings from cost-reduction actions and operating leverage on higher sales.…
• Gross Margin DriversImportance 57 · Surprise 50
  Nine-month gross profit increased $388 million to $7.4 billion, and gross margin expanded 0.4 percentage points to 53.6%. The improvement reflected favorable price less net material inflation and $82 million of IEEPA…
• Software & Systems DemandImportance 54 · Surprise 40
  Software & Systems sales increased 11% in the third quarter to $1,644 million, with underlying sales up 11% on 7% higher volume and 4% higher price. Control Systems & Software benefited from strong power demand, while…
• Operating Margin DriversImportance 54 · Surprise 40
  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…
• Safety & Productivity DemandImportance 49 · Surprise 32
  Safety & Productivity sales increased 3% in the third quarter to $552 million, but underlying sales rose only 2% because 4% higher price was offset by 2% lower volume. Underlying sales increased 4% in the Americas and…
• Intelligent Devices DemandImportance 49 · Surprise 32
  Intelligent Devices sales increased 6% in the third quarter to $2,677 million, with underlying sales up 5% on 3% higher price and 2% higher volume. Sensors sales rose 8%, supported by strong growth in the Americas and…
• Segment Revenue PerformanceImportance 49 · Surprise 32
  Software & Systems generated $4.6 billion in nine-month sales, up 7%, including 18% growth in Test & Measurement and 3% growth in Control Systems & Software. Intelligent Devices generated $7.6 billion, up 4%, with…
• Revenue Performance and MixImportance 49 · Surprise 32
  Nine-month fiscal 2026 net sales increased 5% to $13.8 billion, with Software & Systems up 7%, Intelligent Devices up 4% and Safety & Productivity up 3%. Underlying sales increased 3%, driven by 3% higher price, while…
• Trade Policy and TariffsImportance 47 · Surprise 60
  In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs. Following an April 20, 2026 U.S. Customs and Border Protection…
• Middle East Conflict ImpactImportance 43 · Surprise 32
  The conflict in the Middle East negatively affected first-nine-month fiscal 2026 volume by approximately 1.5 percent across the Company. It also reduced Intelligent Devices underlying sales volume by 0.5 percent.…
• FX / Currency HeadwindsImportance 40 · Surprise 14
  Foreign currency translation favorably affected third-quarter fiscal 2026 sales by 1 percent and first-nine-month sales by 2 percent. The fiscal 2026 outlook assumes a 1.5 percent favorable foreign currency translation…
• Capital Return ProgramImportance 37 · Surprise 6
  During the first nine months of fiscal 2026, Emerson repurchased $898 million of shares and paid $935 million of dividends. Financing activities used $1.920 billion during the period, including the repurchases and…
• Liquidity and Debt PositionImportance 36 · Surprise 14
  At June 30, 2026, total debt-to-total capital was 39.2% and net debt-to-net capital was 34.9%, compared with 39.3% and 36.2%, respectively, at September 30, 2025. Operating working capital increased $251 million to…
• Geographic Market CommentaryImportance 30 · Surprise 40
  Third-quarter underlying sales increased 10% in the U.S. and 8% in the Americas, while Europe declined 1%. Asia, Middle East and Africa grew 8% overall, although China declined 3%. Over the first nine months, U.S.…
• Supply Chain and InventoryImportance 13 · Surprise 6
  Operating working capital increased $251 million from September 30, 2025, primarily because of higher inventory. The increase indicates that inventory levels rose materially during the first nine months of fiscal 2026.…

Revenue by Product (in millions)

Revenue by Geography (in millions)