Emerson Electric (EMR) Q3 2026 earnings summary

Executive summary

• Q3 2026 delivered outstanding results with net sales of $4.9B, up 7% year-over-year, and underlying sales up 6%, driven by robust demand in growth verticals, especially Software & Systems, and strong operational execution in North America and Asia.

• Adjusted EPS rose 13% year-over-year to $1.71, with GAAP EPS up 24% to $1.28, and net earnings for Q3 at $718M.

• Free cash flow in Q3 was $1.32B, up 36% year-over-year, with a margin of 27.1%.

• Full-year 2026 guidance was raised for sales, EPS, and cash flow, reflecting continued healthy demand and strong Q3 performance.

• CTO Peter Zornio retired, with Rudy Sengupta appointed as Chief Technology and AI Officer to reinforce AI-enabled automation strategy.

Financial highlights

• Q3 2026 adjusted segment EBITA margin expanded to 28.5%, up 140 basis points year-over-year.

• Adjusted EPS grew 13% year-over-year to $1.71, above guidance.

• Free cash flow for Q3 was $1.32B, up 36% year-over-year, with a margin of 27.1%.

• Backlog ended at $8.2B, up 7% year-over-year.

• Q3 gross profit was $2.66B (54.5% margin), up 11% year-over-year.

Outlook and guidance

• Full-year 2026 net sales growth expected at ~5% GAAP and ~3.5% underlying, with FX adding 1.5%.

• Adjusted segment EBITA margin guidance at ~28%.

• Adjusted EPS guidance raised to ~$6.55; GAAP EPS expected at ~$4.89.

• Free cash flow for the year expected at ~$3.6B; operating cash flow at ~$4.1B.

• Q4 adjusted EPS expected at ~$1.85.