EMR · Emerson Electric Co.

Emerson's second quarter fiscal 2026 results demonstrated resilience in a dynamic environment, with GAAP EPS increasing 28% to $1.10 and Adjusted EPS rising 4% to $1.54. Net sales grew 3% to $4.56 billion, though underlying sales growth was modest at 0.5%. The company noted that sales were impacted by the conflict in the Middle East, yet margins exceeded expectations. Adjusted Segment EBITA margin remained strong at 27.6%, and pretax margin expanded 320 basis points to 17.4%. Management highlighted resilient demand led by the Software & Systems segment, which saw 4% reported sales growth. The company updated its full-year 2026 outlook, reaffirming expectations for a strong second half supported by orders momentum and a robust backlog. The guidance implies full-year Adjusted EPS of $6.45-$6.55. Capital allocation is pivoting towards returning cash to shareholders, with plans to return approximately $2.2 billion through dividends and share repurchases in fiscal 2026. Separately, the Board elected Jennifer G. Newstead, Senior Vice President and General Counsel of Apple, as a new independent director effective August 3, 2026. Ms. Newstead brings significant legal and regulatory experience from her roles at Apple and Meta. Her appointment expands the Board to 11 members.