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Emerson Electric Citi's Global Industrial Tech & Mobility Conference 2026 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Citi's Global Industrial Tech & Mobility Conference 2026 summary18 Feb, 2026

Software and AI integration

  • Achieved 9% ACV growth last quarter, targeting 10%+ for the year, driven by integration of AI into core software products and strong customer demand for embedded AI solutions.

  • Three key differentiators: deep domain expertise, mission-critical applications in regulated industries, and a usage-based economic model protect against generic AI threats.

  • Released new AI-powered products like Ovation Virtual Advisor and Aspen Virtual Advisor, with over $100 million in outstanding quotations.

  • Increased R&D investment in software to accelerate innovation and maintain competitive advantage.

  • Customers are actively including the company in their AI roadmaps, seeking support for operational improvements.

Business performance and growth drivers

  • U.S. market is the primary growth engine, supported by strong industrial policy and activity in semiconductors, aerospace, energy, life sciences, and power.

  • Middle East and emerging markets like India and Africa are rapidly growing, offsetting weakness in China and Europe.

  • Power segment saw 74% order growth, with significant opportunities in modernization, data centers, and future greenfield projects.

  • MRO (maintenance, repair, and operations) remains stable, representing about two-thirds of sales and growing at mid-single digits.

  • Test and measurement business achieved 20% order growth and 29% segment EBITDA, with cost synergies realized and ongoing R&D investment in AI tools.

Regional and sector trends

  • U.S. posted 18% growth, with all verticals performing well; Middle East and Asia (outside China) also strong, while Europe and China remain soft.

  • Life sciences seeing U.S. expansions for new drugs, with larger nearshoring investments expected to materialize through 2027–2028.

  • Investments in Saudi Arabia and India are expanding manufacturing capacity to meet demand.

  • Venezuela represents a potential future growth opportunity, with infrastructure and security being monitored.

What specific AI products drive commercial success?
India/Middle East growth offsetting China slowdown
Evolve commercial engine for C-suite software sales
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