Emerson Q2 sales rise on software & systems strength, updates 2026 outlook

Emerson Electric Co

05/05/2026 21:15

Overview

U.S. automation firm's fiscal Q2 net sales rose 3% yr/yr; adjusted EPS up 4%

Company says sales were impacted by conflict in the Middle East, but margins exceeded expectations

Emerson updates 2026 outlook, plans to return ~$2.2 bln to shareholders via buybacks, dividends

Outlook

Emerson sees Q3 net sales growth of about 5.5%, underlying sales growth of about 5%

Company expects Q3 adjusted EPS between $1.65 and $1.70

Emerson forecasts full-year 2026 adjusted EPS of $6.45 to $6.55

Result Drivers

MIDDLE EAST IMPACT - Co said sales were affected by the conflict in the Middle East

ORDERS MOMENTUM - Underlying orders rose 5% on resilient demand, led by Software & Systems and growth verticals, per CEO Lal Karsanbhai

MARGIN PERFORMANCE - Margins exceeded expectations in the quarter, according to CEO Lal Karsanbhai

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Earnings
$618 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy"

Wall Street's median 12-month price target for Emerson Electric Co is $168.00, about 24% above its May 4 closing price of $135.46

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)