Emerson Electric (EMR) Q3 2026 earnings summary

Executive summary

• Q3 2026 delivered outstanding results with sales, margin expansion, earnings, and cash flow all exceeding expectations, driven by robust demand in growth verticals and strong operational execution, especially in North America and Asia.

• Underlying orders grew 7% and underlying sales grew 6% year-over-year, led by Software & Systems and Test & Measurement businesses.

• Adjusted EPS rose 13% year-over-year to $1.71, and GAAP EPS increased 24% to $1.28.

• Raised full-year 2026 guidance for sales growth, adjusted EPS, and cash flow, reflecting strong Q3 results and healthy demand trends.

• Announced CTO Peter Zornio's retirement and Rudy Sengupta's appointment as Chief Technology and AI Officer.

Financial highlights

• Q3 2026 net sales were $4.9B, up 7% year-over-year; underlying sales grew 6%.

• Adjusted segment EBITA margin expanded 140 basis points to 28.5% in Q3.

• Adjusted EPS was $1.71, up 13% year-over-year; GAAP EPS was $1.28, up 24%.

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

• Backlog ended at $8.2B, up 7% year-over-year; book-to-bill ratio was one.

Outlook and guidance

• Raised full-year 2026 sales growth expectations to ~5% GAAP and ~3.5% underlying.

• Adjusted segment EBITA margin guidance at ~28% for the year.

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

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

• Capital return plan includes ~$2.2B to shareholders via ~$1B share repurchases and ~$1.2B dividends.