Track market-moving stories before they get noisy

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Emerson Electric (EMR - Free Report) .

Emerson Electric currently has an average brokerage recommendation (ABR) of 1.80, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.80 approximates between Strong Buy and Buy.

Of the 27 recommendations that derive the current ABR, 16 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 59.3% and 3.7% of all recommendations.

Brokerage Recommendation Trends for EMR

Check price target & stock forecast for Emerson Electric here>>>

The ABR suggests buying Emerson Electric, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is EMR Worth Investing In?Looking at the earnings estimate revisions for Emerson Electric, the Zacks Consensus Estimate for the current year has increased 0.9% over the past month to $6.54.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Emerson Electric. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Emerson Electric may serve as a useful guide for investors.

The artificial intelligence, medical research, aerospace and energy sectors are in long-term growth tracks, and Emerson Electric (EMR) touches all those areas.

The company makes automation systems, and has grown into an international leader with more than 125,000 customers worldwide. The growth of AI data centers and other major projects make it an important supplier for today's industrial sector. Its product lines, for example, include programmable automation controllers and digital valve controllers.

↑
X

Here’s How To Use IBD’s Proprietary Ratings To Find The Next Winning Stock

In 2026, IBD made major updates to all of its proprietary stock ratings. Here’s the lowdown on how the ratings have changed and how to best use them in your investing practice.

0 seconds of 9 minutes, 48 secondsVolume 0%

Press shift question mark to access a list of keyboard shortcuts

The Bear Case For AI: Ed Zitron

22:18

00:00

09:48

09:48

NOW PLAYING
Here's How To Use IBD's Proprietary Ratings To Find The Next Winning Stock

This week, D.A. Davidson reiterated that sentiment as the firm raised its price target on the stock to 155 from 145 and kept a neutral rating. Analysts also raised earnings estimates, citing Emerson's advantaged exposure to power generation, reshoring and other big industrial trends, TheFly.com reported. Possible project delays, trade disputes and geopolitical dangers stand as potential risks.

In a February investor presentation, Emerson said it beats industry rivals in organic sales growth — 7% vs. 4% — on a five-year compounded annual growth rate. Further, adjusted five-year per-share earnings growth of 19% leads the industry average of 5%.

The stock broke out of a cup-without-handle base on the eve of its Aug. 4 earnings report. Emerson raised its outlook for the remainder of the fiscal year, citing secular tailwinds that leave the company with "a solid foundation" to the conclusion of fiscal 2026 and the next fiscal year.

For the fiscal year that ends in September, Emerson forecast sales to climb about 5%, above analyst views, including favorable currency translations. It expects adjusted earnings of about $6.55 a share, in line with estimates. In the previous fiscal year, it earned $6 per share.

Emerson Electric Stock Near Buy Point
Shares continued to climb after the earnings report, but have eased back near the 152.88 buy point, IBD MarketSurge pattern recognition shows. The buy zone goes to 160.52. Shares are testing the 21-day exponential moving average, and a bounce off the line could provide an entry.

Emerson stock has a 21-day average true range, or ATR, of 2.79%. Available on MarketSurge, ATR gauges the characteristic breadth of a stock's behavior. Also, stocks with a high ATR tend to make large price moves that can trigger sell rules. Meanwhile, stocks with lower ATRs tend to make more incremental moves.

Investor's Business Daily gives the company a Composite Rating of 90, the best in the scientific measuring electronics industry group. Many of its competitors — such as 3M (MMM), Eaton (ETN) and Ametek (AME) — are in other industry groups.

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Earnings increased 14%, 7%, 13% and 17% over the past four quarters, with sales up 11%, 13%, 11% and 15%.

St. Louis-based Emerson Electric is in IBD's Breakout Stocks Index, the basis for the IBD Breakout Opportunities (BOUT) exchange traded fund.

The IBD Breakout Opportunities ETF from CapForce tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Further, you can learn more about the fund at the CapForce website.

YOU MAY ALSO LIKE:

Tokenization Promises To Break Trading Barriers. What Investors Need To Know.

World's Best Index Falls Into Bear Market In Another Bad Sign For AI Stocks.

Track The Next Important Earnings Reports

These 7 Stocks Are Analyst Favorites For Magnificent Earnings Growth

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

Copyright ©2026 Investor's Business Daily, LLC. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Beacon Pointe Advisors LLC purchased a new position in Emerson Electric Co. (NYSE:EMR – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 106,638 shares of the industrial products company’s stock, valued at approximately $15,265,000.

Several other hedge funds have also recently modified their holdings of EMR. Basso Capital Management L.P. purchased a new position in shares of Emerson Electric during the 4th quarter worth about $25,000. IFC & Insurance Marketing Inc. purchased a new stake in Emerson Electric in the 4th quarter worth about $27,000. Motiv8 Investments LLC bought a new stake in Emerson Electric in the fourth quarter worth about $27,000. Allied Private Wealth LLC purchased a new position in shares of Emerson Electric during the second quarter valued at approximately $27,000. Finally, Darwin Wealth Management LLC bought a new position in shares of Emerson Electric during the second quarter valued at approximately $29,000. Hedge funds and other institutional investors own 74.30% of the company’s stock.

Emerson Electric Trading Down 1.5% NYSE EMR opened at $155.37 on Friday. Emerson Electric Co. has a 52 week low of $122.64 and a 52 week high of $166.35. The company has a 50 day moving average price of $148.79 and a 200 day moving average price of $143.58. The company has a quick ratio of 0.66, a current ratio of 0.90 and a debt-to-equity ratio of 0.37. The firm has a market cap of $87.02 billion, a PE ratio of 34.00, a price-to-earnings-growth ratio of 2.35 and a beta of 1.24.

Emerson Electric (NYSE:EMR – Get Free Report) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.68 by $0.03. Emerson Electric had a net margin of 13.83% and a return on equity of 17.58%. The company had revenue of $4.87 billion during the quarter, compared to the consensus estimate of $4.80 billion. During the same period last year, the firm earned $1.52 earnings per share. Emerson Electric’s revenue was up .0% compared to the same quarter last year. Emerson Electric has set its FY 2026 guidance at 6.550-6.550 EPS and its Q4 2026 guidance at 1.850-1.850 EPS. As a group, sell-side analysts forecast that Emerson Electric Co. will post 6.54 EPS for the current fiscal year. Emerson Electric Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 14th will be issued a $0.555 dividend. This represents a $2.22 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 14th. Emerson Electric’s dividend payout ratio (DPR) is currently 48.58%.

Insider Buying and Selling at Emerson Electric In other news, CEO Surendralal Lanca Karsanbhai sold 9,650 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $161.91, for a total transaction of $1,562,431.50. Following the transaction, the chief executive officer owned 271,743 shares in the company, valued at $43,997,909.13. This represents a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.23% of the company’s stock.

Analyst Ratings Changes A number of equities research analysts recently issued reports on EMR shares. JPMorgan Chase & Co. raised Emerson Electric from a “neutral” rating to an “overweight” rating and set a $157.00 price target for the company in a research note on Friday, July 17th. Wall Street Zen upgraded Emerson Electric from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Wells Fargo & Company boosted their target price on shares of Emerson Electric from $135.00 to $155.00 and gave the company an “equal weight” rating in a research note on Thursday, May 7th. Barclays upped their price target on shares of Emerson Electric from $140.00 to $144.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Finally, Rothschild & Co Redburn raised their price target on shares of Emerson Electric from $165.00 to $180.00 in a research note on Thursday, August 6th. Thirteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $167.83.

Get Our Latest Analysis on EMR

Emerson Electric Company Profile (Free Report)

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.

See Also Five stocks we like better than Emerson Electric 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding EMR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Emerson Electric Co. (NYSE:EMR – Free Report).

Receive News & Ratings for Emerson Electric Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Emerson Electric and related companies with MarketBeat.com's FREE daily email newsletter.

Emerson's Advanced Measurement Instrumentation Selected by Equinor to Optimize Operations, Accelerate Development PR Newswire

STAVANGER, Norway, Aug. 24, 2026

Broad measurement portfolio to enhance reliable and efficient operations across global energy assets

Emerson and Equinor will collaborate to advance technology innovation and digital operations across Equinor's global onshore and offshore assets.Emerson's broad measurement portfolio will support Equinor's operational objectives to accelerate development, extend field life, improve recovery and advance standardized operations.Thirteen-year frame agreement, including options, for measurement innovation builds on the companies' existing automation programs designed to optimize operations, helping Equinor deliver value and meet Europe's energy demands., /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today announced a new strategic collaboration focused on delivering measurement instrumentation technologies and services across Equinor's global offshore and onshore operations. The collaboration reinforces both companies' commitment to applying advanced automation technologies to improve operational performance and deliver value across global energy infrastructure.

As part of the agreement, Emerson will provide its broad portfolio of measurement instrumentation and analytical technologies as well as lifecycle services to help Equinor accelerate development, extend field life, improve recovery and advance standardized operations.

The agreement builds on the companies' existing digitalization initiatives while strengthening their long-standing collaboration to drive sustained operational excellence. Equinor has cooperated with Emerson for over 40 years using a vast array of its automation technologies including subsea multiphase flow meters, downhole monitoring systems, valves, emissions management systems, control systems, asset management systems and safety, pressure and temperature measurement instrumentation.

"Emerson has been a trusted technology supplier to Equinor for more than four decades, and this collaboration reinforces our shared commitment to operational excellence and innovation," said Slawomir Suchomski, Emerson president of Europe. "We're proud to deepen our collaboration with Equinor and support the company's Norwegian Continental Shelf (NCS) 2035 initiatives. Through our measurement instrumentation technologies, we'll help optimize production, improve reliability and support safe and efficient operations across its global assets."

Media:

Contacts: Emerson Global Media ContactsAdditional resources:

Join the Emerson Exchange 365 CommunityConnect with Emerson via X Facebook LinkedIn YouTubeAbout Emerson
Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/emersons-advanced-measurement-instrumentation-selected-by-equinor-to-optimize-operations-accelerate-development-302857353.html

SOURCE Emerson

Check the Warning Signs for

EMR

now!

Biondo Investment Advisors LLC bought a new position in Emerson Electric Co. (NYSE:EMR – Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 79,150 shares of the industrial products company’s stock, valued at approximately $11,330,000.

Several other hedge funds also recently bought and sold shares of EMR. Rooted Wealth Advisors Inc. lifted its holdings in shares of Emerson Electric by 3.0% during the 4th quarter. Rooted Wealth Advisors Inc. now owns 2,195 shares of the industrial products company’s stock valued at $291,000 after buying an additional 64 shares during the last quarter. Cary Street Partners Investment Advisory LLC grew its holdings in Emerson Electric by 2.4% in the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 3,098 shares of the industrial products company’s stock valued at $411,000 after buying an additional 72 shares during the last quarter. Zhang Financial LLC increased its position in Emerson Electric by 2.7% during the fourth quarter. Zhang Financial LLC now owns 2,892 shares of the industrial products company’s stock worth $384,000 after acquiring an additional 76 shares during the period. Root Financial Partners LLC raised its position in shares of Emerson Electric by 3.6% during the fourth quarter. Root Financial Partners LLC now owns 2,227 shares of the industrial products company’s stock valued at $296,000 after buying an additional 78 shares during the last quarter. Finally, REAP Financial Group LLC lifted its position in shares of Emerson Electric by 4.4% in the 4th quarter. REAP Financial Group LLC now owns 1,892 shares of the industrial products company’s stock worth $251,000 after acquiring an additional 79 shares during the period. 74.30% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Emerson Electric In other news, CEO Surendralal Lanca Karsanbhai sold 9,650 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $161.91, for a total transaction of $1,562,431.50. Following the completion of the sale, the chief executive officer owned 271,743 shares in the company, valued at $43,997,909.13. The trade was a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.23% of the stock is owned by corporate insiders.

Analysts Set New Price Targets Several equities analysts recently commented on the company. Daiwa Securities Group cut their target price on Emerson Electric from $177.00 to $156.00 and set an “outperform” rating for the company in a research report on Friday, May 15th. Barclays boosted their target price on Emerson Electric from $140.00 to $144.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Rothschild & Co Redburn lifted their target price on shares of Emerson Electric from $165.00 to $180.00 in a report on Thursday, August 6th. Royal Bank Of Canada increased their price target on shares of Emerson Electric from $169.00 to $179.00 and gave the company an “outperform” rating in a research report on Wednesday, August 5th. Finally, Wells Fargo & Company boosted their target price on Emerson Electric from $135.00 to $155.00 and gave the company an “equal weight” rating in a research note on Thursday, May 7th. Thirteen equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Emerson Electric presently has an average rating of “Moderate Buy” and an average price target of $166.96. Check Out Our Latest Analysis on EMR

Emerson Electric Price Performance Shares of EMR opened at $157.21 on Monday. The company’s 50-day moving average is $148.04 and its 200-day moving average is $143.42. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.90 and a quick ratio of 0.66. The firm has a market capitalization of $88.05 billion, a PE ratio of 34.40, a PEG ratio of 2.34 and a beta of 1.24. Emerson Electric Co. has a fifty-two week low of $122.64 and a fifty-two week high of $166.35.

Emerson Electric (NYSE:EMR – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $1.71 EPS for the quarter, beating the consensus estimate of $1.68 by $0.03. Emerson Electric had a net margin of 13.83% and a return on equity of 17.58%. The business had revenue of $4.87 billion for the quarter, compared to the consensus estimate of $4.80 billion. During the same period in the prior year, the company posted $1.52 earnings per share. Emerson Electric’s revenue was up .0% compared to the same quarter last year. Emerson Electric has set its FY 2026 guidance at 6.550-6.550 EPS and its Q4 2026 guidance at 1.850-1.850 EPS. Equities analysts forecast that Emerson Electric Co. will post 6.55 EPS for the current year.

Emerson Electric Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be paid a $0.555 dividend. This represents a $2.22 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, August 14th. Emerson Electric’s dividend payout ratio is currently 48.58%.

Emerson Electric Profile (Free Report)

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.

See Also Five stocks we like better than Emerson Electric VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding EMR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Emerson Electric Co. (NYSE:EMR – Free Report).

Receive News & Ratings for Emerson Electric Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Emerson Electric and related companies with MarketBeat.com's FREE daily email newsletter.

Allworth Financial LP purchased a new position in Emerson Electric Co. (NYSE:EMR – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 24,557 shares of the industrial products company’s stock, valued at approximately $3,515,000.

Several other hedge funds also recently bought and sold shares of EMR. Brighton Jones LLC increased its position in shares of Emerson Electric by 74.1% in the fourth quarter. Brighton Jones LLC now owns 11,392 shares of the industrial products company’s stock worth $1,412,000 after purchasing an additional 4,850 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Emerson Electric during the first quarter worth about $232,000. Caxton Associates LLP purchased a new position in shares of Emerson Electric in the 1st quarter worth about $275,000. Sivia Capital Partners LLC bought a new position in shares of Emerson Electric during the 2nd quarter valued at about $203,000. Finally, Jump Financial LLC raised its holdings in shares of Emerson Electric by 121.5% during the 2nd quarter. Jump Financial LLC now owns 10,543 shares of the industrial products company’s stock valued at $1,406,000 after buying an additional 5,783 shares in the last quarter. Hedge funds and other institutional investors own 74.30% of the company’s stock.

Insider Transactions at Emerson Electric In other Emerson Electric news, CEO Surendralal Lanca Karsanbhai sold 9,650 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $161.91, for a total transaction of $1,562,431.50. Following the completion of the sale, the chief executive officer directly owned 271,743 shares of the company’s stock, valued at $43,997,909.13. This trade represents a 3.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.23% of the company’s stock.

Wall Street Analysts Forecast Growth EMR has been the subject of several analyst reports. Sanford C. Bernstein upped their price target on shares of Emerson Electric from $169.00 to $186.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Wells Fargo & Company raised their price target on Emerson Electric from $135.00 to $155.00 and gave the stock an “equal weight” rating in a research report on Thursday, May 7th. Citigroup upped their price target on shares of Emerson Electric from $174.00 to $182.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. JPMorgan Chase & Co. upgraded Emerson Electric from a “neutral” rating to an “overweight” rating and set a $157.00 price objective on the stock in a research report on Friday, July 17th. Finally, Daiwa Securities Group decreased their price objective on shares of Emerson Electric from $177.00 to $156.00 and set an “outperform” rating for the company in a report on Friday, May 15th. Thirteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Emerson Electric presently has a consensus rating of “Moderate Buy” and a consensus price target of $166.96. Get Our Latest Report on EMR

Emerson Electric Trading Up 1.6% Shares of Emerson Electric stock opened at $157.21 on Friday. Emerson Electric Co. has a 1-year low of $122.64 and a 1-year high of $166.35. The company’s fifty day simple moving average is $148.04 and its 200-day simple moving average is $143.46. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.90 and a quick ratio of 0.66. The stock has a market capitalization of $88.05 billion, a PE ratio of 34.40, a P/E/G ratio of 2.30 and a beta of 1.24.

Emerson Electric (NYSE:EMR – Get Free Report) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $1.71 EPS for the quarter, topping analysts’ consensus estimates of $1.68 by $0.03. Emerson Electric had a return on equity of 17.58% and a net margin of 13.83%.The company had revenue of $4.87 billion for the quarter, compared to analysts’ expectations of $4.80 billion. During the same period last year, the firm earned $1.52 EPS. Emerson Electric’s revenue for the quarter was up .0% compared to the same quarter last year. Emerson Electric has set its FY 2026 guidance at 6.550-6.550 EPS and its Q4 2026 guidance at 1.850-1.850 EPS. As a group, equities analysts anticipate that Emerson Electric Co. will post 6.55 earnings per share for the current year.

Emerson Electric Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be given a $0.555 dividend. This represents a $2.22 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, August 14th. Emerson Electric’s payout ratio is presently 48.58%.

Emerson Electric Company Profile (Free Report)

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.

Featured Articles Five stocks we like better than Emerson Electric Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding EMR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Emerson Electric Co. (NYSE:EMR – Free Report).

Receive News & Ratings for Emerson Electric Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Emerson Electric and related companies with MarketBeat.com's FREE daily email newsletter.

Advisors Capital Management LLC bought a new stake in Emerson Electric Co. (NYSE:EMR – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 89,983 shares of the industrial products company’s stock, valued at approximately $12,881,000.

Several other hedge funds also recently modified their holdings of EMR. Vanguard Group Inc. grew its stake in Emerson Electric by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 54,909,180 shares of the industrial products company’s stock worth $7,287,546,000 after acquiring an additional 578,242 shares during the period. BlackRock Inc. purchased a new position in shares of Emerson Electric during the 2nd quarter worth $6,193,425,000. State Street Corp boosted its holdings in shares of Emerson Electric by 2.0% during the fourth quarter. State Street Corp now owns 27,483,440 shares of the industrial products company’s stock worth $3,647,602,000 after purchasing an additional 541,887 shares during the last quarter. Bank of America Corp DE grew its position in shares of Emerson Electric by 13.1% in the first quarter. Bank of America Corp DE now owns 19,941,844 shares of the industrial products company’s stock valued at $2,612,780,000 after purchasing an additional 2,302,055 shares during the period. Finally, Geode Capital Management LLC increased its stake in Emerson Electric by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 12,328,324 shares of the industrial products company’s stock valued at $1,628,638,000 after purchasing an additional 76,488 shares during the last quarter. 74.30% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets In other Emerson Electric news, CEO Surendralal Lanca Karsanbhai sold 9,650 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $161.91, for a total value of $1,562,431.50. Following the completion of the sale, the chief executive officer owned 271,743 shares of the company’s stock, valued at $43,997,909.13. This trade represents a 3.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.23% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In EMR has been the subject of several recent analyst reports. BNP Paribas Exane lifted their price target on Emerson Electric from $180.00 to $185.00 in a report on Thursday, August 6th. BMO Capital Markets increased their price objective on shares of Emerson Electric from $157.00 to $175.00 in a report on Thursday, August 6th. Rothschild & Co Redburn boosted their target price on shares of Emerson Electric from $165.00 to $180.00 in a report on Thursday, August 6th. Sanford C. Bernstein upped their price target on shares of Emerson Electric from $169.00 to $186.00 and gave the stock an “outperform” rating in a research report on Friday, August 14th. Finally, Daiwa Securities Group decreased their price target on shares of Emerson Electric from $177.00 to $156.00 and set an “outperform” rating on the stock in a report on Friday, May 15th. Thirteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Emerson Electric currently has a consensus rating of “Moderate Buy” and an average price target of $166.96. Get Our Latest Research Report on Emerson Electric

Emerson Electric Trading Down 1.7% Shares of EMR stock opened at $154.93 on Friday. The company has a quick ratio of 0.66, a current ratio of 0.90 and a debt-to-equity ratio of 0.37. Emerson Electric Co. has a fifty-two week low of $122.64 and a fifty-two week high of $166.35. The firm’s 50 day moving average price is $147.76 and its two-hundred day moving average price is $143.36. The stock has a market cap of $86.78 billion, a price-to-earnings ratio of 33.90, a price-to-earnings-growth ratio of 2.34 and a beta of 1.24.

Emerson Electric (NYSE:EMR – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $1.71 earnings per share for the quarter, topping analysts’ consensus estimates of $1.68 by $0.03. Emerson Electric had a net margin of 13.83% and a return on equity of 17.58%. The firm had revenue of $4.87 billion during the quarter, compared to analysts’ expectations of $4.80 billion. During the same period in the prior year, the company earned $1.52 EPS. The firm’s revenue was up .0% on a year-over-year basis. Emerson Electric has set its FY 2026 guidance at 6.550-6.550 EPS and its Q4 2026 guidance at 1.850-1.850 EPS. On average, analysts anticipate that Emerson Electric Co. will post 6.55 EPS for the current year.

Emerson Electric Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 14th will be given a dividend of $0.555 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.22 annualized dividend and a yield of 1.4%. Emerson Electric’s payout ratio is 48.58%.

(Free Report)

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.

Featured Articles Five stocks we like better than Emerson Electric 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future

Receive News & Ratings for Emerson Electric Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Emerson Electric and related companies with MarketBeat.com's FREE daily email newsletter.

CORDA Investment Management LLC. bought a new position in Emerson Electric Co. (NYSE: EMR) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 8,560 shares of the industrial products company's stock, valued at approximately $1,225,000. Several other hedge funds and

1ST Source Bank acquired a new position in Emerson Electric Co. (NYSE: EMR) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 7,333 shares of the industrial products company's stock, valued at approximately $1,050,000. Several other large investors have also

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Emerson Electric (EMR - Free Report) Headquartered in St. Louis, MO, Emerson Electric Co. is a diversified global engineering and technology company. It offers a wide range of products and services to customers in consumer, commercial and industrial markets. The company boasts a diverse range of brands like Bettis, Crosby, Fisher, Flexim, Micro Motion, Afag, Appleton, ASCO, Greenlee, Klauke, AMS and DeltaV. On a geographical basis, the company has operations in the Americas (51% of fiscal 2025 net revenues), AMEA (30%) and Europe (19%).

EMR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Industrial Products stock. EMR has a Momentum Style Score of A, and shares are up 19% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $6.49 per share. EMR also boasts an average earnings surprise of +1.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EMR should be on investors' short list.

, /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today announced it has acquired Glue Inc., an innovator in advancing intelligent validation and test through its AI-enabled software product Glue Studio. Glue Studio features specialized AI-centric capabilities for test generation and planning. The acquisition strengthens Emerson's strategy to deliver more software-defined, data-centric capabilities across Test & Measurement's NI portfolio.

Glue Studio's technology accelerates the continued investment in Emerson's NI Nigel™ AI, the industry's first AI specifically optimized for test and measurement workflows. Nigel reflects Emerson's vision for AI in test and measurement: domain-specific, deeply integrated, and designed to improve human decision-making. Nigel is embedded directly within NI software and trained in test system design, methodologies and data analysis, providing context-aware guidance throughout product development. As a result, Nigel delivers productivity improvements including faster product releases and increased customer engagement. Glue Studio's capabilities will strengthen Nigel's ability to connect validation workflows, enhance traceability and accelerate the path from design to verified performance.

"Glue Studio brings highly complementary capabilities that align closely with Emerson's strategy to lead in software-defined test and measurement," said Ritu Favre, Group President of Test & Measurement at Emerson. "By integrating Glue Studio's AI-enabled validation technology into Nigel, we are enhancing our ability to extend AI-assisted test planning and validation across the engineering workflow and help customers improve engineering decisions."

For more information on NI Nigel™ AI, visit: Explore NI Nigel AI.

Terms of the transaction were not disclosed.

About Emerson
Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly historical may be "forward-looking" statements, which represent management's expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine, Middle East and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, https://ir.emerson.com/, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Contacts
Investors
Doug Ashby
(314) 553-2197

Media
Joseph Sala / Greg Klassen / Connor Murphy
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

SOURCE Emerson

3 Industrial Names That Will Benefit from Rising CapEx in 2026Emerson Electric NYSE: EMR reported third-quarter fiscal 2026 results that exceeded its expectations, citing broad-based order growth, stronger demand in North America and Asia, and continued momentum in power generation, semiconductors and test and measurement.

President and Chief Executive Officer Lal Karsanbhai said underlying orders rose 7% in the quarter, while underlying sales increased 6%. The company’s growth verticals increased 27%, led by semiconductor growth of 53% and power growth of 37%.

Get Emerson Electric alerts:

Don't Miss Out on These Top 3 Stocks for a September to Remember“End market demand is robust, supported by secular trends in our growth verticals and meaningful investment in automation,” Karsanbhai said.

Emerson raised its full-year outlook for sales, earnings and cash flow following the quarterly performance. The company now expects fiscal 2026 GAAP sales growth of 5%, underlying sales growth of 3.5%, adjusted earnings per share of about $6.55, and free cash flow of approximately $3.6 billion. It maintained its expectation for adjusted segment EBITA margin of about 28%.

Quarterly Results and Segment Performance American Superconductor's Earnings Surge, Future Growth ExpectedChief Financial Officer Mike Baughman said adjusted earnings per share rose 13% year over year to $1.71, above the high end of Emerson’s prior guidance. Adjusted segment EBITA margin expanded 140 basis points to 28.5%, aided by better-than-expected volume and favorable segment mix. Price, cost reductions and price-cost performance more than offset inflation, he said.

Third-quarter free cash flow increased 36% to $1.3 billion, representing a 27.1% margin. Baughman said cash generation benefited from operating performance, tariff refunds and the timing of tax payments that shifted from the third quarter into the fourth quarter.

Emerson’s backlog ended the quarter at $8.2 billion, up 7% from a year earlier, while book-to-bill was 1.0. Maintenance, repair and operations activity represented 65% of sales.

Software & Systems: Underlying sales rose 11%, including 23% growth in Test & Measurement and 7% growth in Control Systems & Software. Segment margin was 31.8%, down 30 basis points from a strong prior-year comparison. The margin included a 1.5-point drag tied primarily to software contract renewals and a higher mix of lower-margin projects. Intelligent Devices: Underlying sales increased 5%, supported by the Middle East, project shipment timing and sensors. Segment margin rose 240 basis points to 27.9%, driven by volume leverage, price-cost and cost reductions. Safety & Productivity: Underlying sales grew 2%, led by electrical products and industrial activity in North America. Segment margin increased 80 basis points to 21.2% as price-cost discipline and cost reductions offset lower volume and inflation. Annual contract value for Emerson’s software portfolio increased 9% year over year to $1.68 billion. Management continues to expect annual contract value growth of more than 10% for the full fiscal year.

Regional Demand and Growth Verticals Sales in the Americas rose 8%, including 10% growth in the United States. Software & Systems sales in the U.S. increased 14%, while Intelligent Devices increased 9%.

Asia, the Middle East and Africa also grew 8%, led by 11% growth in the Middle East and Africa. China sales declined 3%, an improvement from the first half of the year, while Europe declined 1%. Karsanbhai said orders in Europe were positive during the quarter, while China improved sequentially.

Test & Measurement orders increased 19%, including a 70% increase in semiconductor orders and double-digit gains in aerospace and defense. Orders in Emerson’s Ovation power-generation business increased 31%, reflecting investment in generation capacity, fleet modernization and grid infrastructure.

Chief Operating Officer Ram Krishnan said power demand has largely been driven by fleet modernizations to date, though the company is beginning to see more new capacity projects. He cited gas-fired generation in North America, behind-the-meter data center opportunities, digital grid management and nuclear power as areas contributing to growth.

Emerson’s project funnel expanded by $1.2 billion sequentially to $12.4 billion, up 8% from a year earlier. Power accounted for $3 billion of the funnel after growing by $450 million from the prior quarter. The LNG funnel increased $350 million to $2.2 billion. Management said the company won about $400 million from its project funnel during the quarter, with 80% coming from growth verticals.

Middle East Conditions and Capital Returns The company said its operations in the Middle East performed better than its reduced expectations despite continued supply-chain complexity and the regional conflict. Emerson’s field service engineers are operating at pre-conflict levels, though customer operating capacity remains at roughly 75%, according to Karsanbhai.

Baughman said the Middle East created an approximately $25 million revenue headwind in the third quarter compared with the company’s February outlook, and Emerson expects a similar effect in the fourth quarter. The company continues to model an approximately $100 million fiscal-year impact from the conflict as the Strait of Hormuz remains effectively closed.

Management said repair work is underway and large projects are progressing, while new opportunities are emerging in pipelines, storage and alternative export routes intended to improve energy security and reduce dependence on the Strait of Hormuz. Karsanbhai said customer activity in petrochemical and LNG expansions could move relatively quickly if conditions stabilize.

Emerson repurchased $898 million of shares through the third quarter and maintained its plan to return approximately $2.2 billion to shareholders during fiscal 2026, including $1.2 billion in dividends and $1 billion in share repurchases.

Leadership Changes Karsanbhai also announced that Chief Technology Officer Peter Zornio will retire Dec. 31. Zornio joined Emerson in 2006 and has held leadership roles in the company’s automation business and technology organization.

Rudy Sengupta will become senior vice president and chief technology and AI officer effective Aug. 15. Sengupta joined Emerson through its acquisition of NI and currently serves as vice president and general manager of Test and Analytics Software. Karsanbhai said the appointment supports Emerson’s strategy to advance AI-enabled automation and autonomous operations.

About Emerson Electric (NYSE:EMR)Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson's offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in Emerson Electric Right Now?Before you consider Emerson Electric, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Emerson Electric wasn't on the list.

While Emerson Electric currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.

Get This Free Report

Emerson Electric (EMR - Free Report) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.79%. A quarter ago, it was expected that this maker of process controls systems, valves and analytical instruments would post earnings of $1.54 per share when it actually produced earnings of $1.54, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Emerson Electric, which belongs to the Zacks Manufacturing - Electronics industry, posted revenues of $4.87 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.64%. This compares to year-ago revenues of $4.55 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Emerson Electric shares have added about 16.7% since the beginning of the year versus the S&P 500's gain of 11%.

What's Next for Emerson Electric?While Emerson Electric has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Emerson Electric was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.81 on $5.1 billion in revenues for the coming quarter and $6.49 on $18.79 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Electronics is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Pioneer Power Solutions, Inc. (PPSI - Free Report) , is yet to report results for the quarter ended June 2026.

This company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of -45.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Pioneer Power Solutions, Inc.'s revenues are expected to be $5.1 million, down 39.1% from the year-ago quarter.

Emerson Electric Co (EMR) released its 8-K filing detailing its third quarter results on August 4, 2026. The company's earnings report showcases positive growth

, /PRNewswire/ -- Emerson (NYSE: EMR) today reported results1 for its third quarter ended June 30, 2026 and updated its full year outlook for fiscal 2026. Emerson also declared a quarterly cash dividend of $0.555 per share of common stock payable September 10, 2026 to stockholders of record on August 14, 2026.

(dollars in millions, except per share)     

     2025 Q3     

     2026 Q3     

     Change     

Underlying Orders2

7 %

Net Sales

$4,553

$4,873

7 %

Underlying Sales3

6 %

Pretax Earnings

$734

$916

Margin

16.1 %

18.8 %

270 bps

Adjusted Segment EBITA4

$1,232

$1,387

Margin

27.1 %

28.5 %

140 bps

GAAP Earnings Per Share

$1.03

$1.28

24 %

Adjusted Earnings Per Share5

$1.52

$1.71

13 %

Operating Cash Flow

$1,062

$1,425

34 %

Free Cash Flow

$970

$1,323

36 %

Management Commentary

"Emerson had an outstanding third quarter with sales, margin expansion, earnings and cash flow all exceeding expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Demand was robust, with underlying orders up 7%, led by Software & Systems and broad-based growth in North America and Asia. The conflict in the Middle East remains fluid, and I am proud of our team's ability to deliver results and support our customers around the world."

Karsanbhai continued, "We are raising our full year guidance, reflecting our strong third quarter performance and healthy demand. Secular tailwinds continue to support sustained investment in our growth verticals and provide a solid foundation as we finish 2026 and look ahead to 2027."

2026 Outlook

The following tables summarize the fiscal year 2026 guidance framework. As we pivot capital allocation to returning cash to shareholders, the 2026 outlook assumes returning ~$2.2B through ~$1B share repurchases and ~$1.2B of dividends.

                        Guidance figures are approximate.             

     2026 Q4    

      2026‌     

Net Sales Growth

~5%

~5%

Underlying Sales Growth

~5%

~3.5%

Earnings Per Share

~$1.45

~$4.89

Amortization of intangibles

~$0.34

~$1.39

Restructuring and related costs

~$0.03

~$0.24

Acquisition/divestiture fees and related costs

~$0.01

~$0.09

Discrete taxes

~$0.02

~$0.05

IEEPA tariff refunds

-

~($0.11)

Adjusted Earnings Per Share

~$1.85

~$6.55

Operating Cash Flow

~$4.1B

Free Cash Flow

~$3.6B

1

Results are presented on a continuing operations basis. 

2

Underlying orders do not include AspenTech.

3

Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.

4

Adjusted segment EBITA represents segment earnings excluding restructuring and intangibles amortization expense.

5

Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, first year purchase accounting related items and transaction-related costs, discrete taxes and certain gains, losses or impairments.

Conference Call

Today, beginning at 3:30 p.m. Central Time / 4:30 p.m. Eastern Time, Emerson management will discuss the third quarter results during an investor conference call. Participants can access a live webcast available at https://ir.emerson.com at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

About Emerson

Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release that are not strictly historical may be "forward-looking" statements, which represent management's expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine, Middle East and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Investors:

Media:

Doug Ashby

Joseph Sala / Greg Klassen

(314) 553-2197                                   

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

(tables attached)

Table 1

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

Quarter Ended June
30,

Nine Months Ended
June 30,

2025

2026

2025

2026

Net sales

$  4,553

$  4,873

$ 13,161

$ 13,781

     Cost of sales

2,160

2,218

6,161

6,393

     SG&A expenses

1,266

1,343

3,773

3,902

     Other deductions, net

298

311

944

744

     Interest expense, net

95

85

145

258

Earnings from continuing operations before income taxes

734

916

2,138

2,484

Income taxes

154

198

536

542

Earnings from continuing operations

580

718

1,602

1,942

Discontinued operations, net of tax

6

—

7

—

Net earnings

586

718

1,609

1,942

Less: Noncontrolling interests in subsidiaries

—

—

(48)

1

Net earnings common stockholders

$     586

$     718

$  1,657

$  1,941

Earnings common stockholders

   Earnings from continuing operations

580

718

1,650

1,941

   Discontinued operations

6

—

7

—

Net earnings common stockholders

$     586

$     718

$  1,657

$  1,941

Diluted avg. shares outstanding

564.7

561.1

567.1

562.7

Diluted earnings per share common stockholders

Earnings from continuing operations

$    1.03

$    1.28

$    2.91

$    3.45

Discontinued operations

0.01

—

0.01

—

Diluted earnings per common share

$    1.04

$    1.28

$    2.92

$    3.45

Quarter Ended June
30,

Nine Months Ended
June 30,

2025

2026

2025

2026

Other deductions, net

     Amortization of intangibles

$     219

$     204

$     677

$     613

     Restructuring costs

37

87

70

141

     Other

42

20

197

(10)

          Total

$     298

$     311

$     944

$     744

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

Sept 30, 2025

June 30, 2026

Assets

     Cash and equivalents

$         1,544

$             2,180

     Receivables, net

3,101

3,057

     Inventories

2,213

2,513

     Other current assets

1,725

1,905

Total current assets

8,583

9,655

     Property, plant & equipment, net

2,871

2,861

     Goodwill

18,193

18,122

     Other intangible assets

9,458

8,686

     Other

2,859

2,884

Total assets

$       41,964

$            42,208

Liabilities and equity

     Short-term borrowings and current maturities of long-term debt

$         4,797

$             5,587

     Accounts payable

1,384

1,613

     Accrued expenses

3,616

3,572

Total current liabilities

9,797

10,772

     Long-term debt

8,319

7,526

     Other liabilities

3,550

3,516

Equity

     Common stockholders' equity

20,282

20,379

     Noncontrolling interests in subsidiaries

16

15

Total equity

20,298

20,394

Total liabilities and equity

$       41,964

$            42,208

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

Nine Months Ended June 30,

2025

2026

Operating activities

Net earnings

$         1,609

$         1,942

Earnings from discontinued operations, net of tax

(7)

—

Adjustments to reconcile net earnings to net cash provided by operating activities:

        Depreciation and amortization

1,139

1,105

        Stock compensation

198

181

        Changes in operating working capital

(80)

(320)

        Other, net

(195)

(6)

            Cash from continuing operations

2,664

2,902

            Cash from discontinued operations

(576)

—

            Cash provided by operating activities

2,088

2,902

Investing activities

Capital expenditures

(263)

(284)

Purchases of businesses, net of cash and equivalents acquired

(36)

—

Other, net

(94)

(38)

    Cash used in investing activities

(393)

(322)

Financing activities

Net increase in short-term borrowings

1,419

1,434

Proceeds from short-term borrowings greater than three months

5,292

6,229

Payments of short-term borrowings greater than three months

(1,349)

(7,028)

Proceeds from long-term debt

1,544

—

Payments of long-term debt

(503)

(588)

Dividends paid

(895)

(935)

Purchases of common stock

(1,147)

(898)

Purchase of noncontrolling interest

(7,244)

—

Settlement of AspenTech share awards

(76)

—

Other, net

(60)

(134)

    Cash used in financing activities

(3,019)

(1,920)

Effect of exchange rate changes on cash and equivalents

(45)

(24)

Increase (decrease) in cash and equivalents

(1,369)

636

Beginning cash and equivalents

3,588

1,544

Ending cash and equivalents

$         2,219

$         2,180

Table 4

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(DOLLARS IN MILLIONS, UNAUDITED)

The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to supplement the Company's results of operations, including its segment earnings which are defined as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.

Quarter Ended June 30,

2025

2026

Reported

Underlying

Sales

Control Systems & Software     

$         1,120

$         1,199

7 %

7 %

Test & Measurement

360

445

23 %

23 %

Software & Systems

$         1,480

$         1,644

11 %

11 %

Sensors

1,013

1,091

8 %

7 %

Final Control

1,522

1,586

4 %

3 %

Intelligent Devices

$         2,535

$         2,677

6 %

5 %

Safety & Productivity

$            538

$            552

3 %

2 %

Total

$         4,553

$         4,873

7 %

6 %

Sales Growth by Geography

Quarter Ended
June 30,

Americas

8 %

Europe

(1) %

Asia, Middle East & Africa            

8 %

Table 4 cont.

Nine Months Ended June 30,

2025

2026

Reported

Underlying

Sales

Control Systems & Software     

$         3,235

$         3,332

3 %

2 %

Test & Measurement

1,077

1,268

18 %

15 %

Software & Systems

$         4,312

$         4,600

7 %

5 %

Sensors

2,986

3,111

4 %

2 %

Final Control

4,315

4,469

4 %

2 %

Intelligent Devices

$         7,301

$         7,580

4 %

2 %

Safety & Productivity

$         1,548

$         1,601

3 %

2 %

Total

$       13,161

$       13,781

5 %

3 %

Sales Growth by Geography

Nine Months Ended
June 30,

Americas

6 %

Europe

(1) %

Asia, Middle East & Africa

1 %

Table 4 cont.

Quarter Ended June 30,

Quarter Ended June 30,

2025

2026

As Reported
(GAAP)

Adjusted
EBITA 
(Non-GAAP)

As
Reported
(GAAP)

Adjusted
EBITA 
(Non-GAAP)

Earnings

Control Systems & Software

$         271

$         393

$        285

$         391

 Margins

24.2 %

35.2 %

23.8 %

32.6 %

Test & Measurement

(26)

81

11

132

 Margins

(7.2) %

22.4 %

2.6 %

29.6 %

Software & Systems

$        245

$        474

$        296

$        523

 Margins

16.6 %

32.1 %

18.0 %

31.8 %

Sensors

246

259

303

323

 Margins

24.2 %

25.5 %

27.7 %

29.7 %

Final Control

351

389

349

424

 Margins

23.1 %

25.5 %

22.0 %

26.7 %

Intelligent Devices

$        597

$        648

$        652

$        747

 Margins

23.5 %

25.5 %

24.3 %

27.9 %

Safety & Productivity

$        103

$        110

$         93

$        117

 Margins

19.2 %

20.4 %

16.9 %

21.2 %

Corporate items and interest expense, net:

Stock compensation

(71)

(45)

(68)

(64)

Unallocated pension and postretirement costs

27

27

29

29

Corporate and other

(72)

(31)

(1)

(49)

Interest expense, net

(95)

—

(85)

—

Pretax Earnings / Adjusted EBITA

$        734

$      1,183

$        916

$      1,303

 Margins

16.1 %

26.0 %

18.8 %

26.7 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$      1,232

$      1,387

 Margins

27.1 %

28.5 %

Table 4 cont.

Quarter Ended June 30,

Quarter Ended June 30,

2025

2026

Amortization of 
Intangibles1

Restructuring 
and
Related Costs2

Amortization of

Intangibles1

Restructuring 
and
Related Costs2

Control Systems & Software                

$              114

$                  8

$              100

$                  6

Test & Measurement

107

—

108

13

Software & Systems

$              221

$                 8

$              208

$                19

Sensors

11

2

11

9

Final Control

30

8

27

48

Intelligent Devices

$                41

$                10

$                38

$                57

Safety & Productivity

$                 7

$                —

$                 7

$                17

Corporate

—

233

—

6

Total

$              269

$                41

$              253

$                99

1 Amortization of intangibles includes $50 and $49 reported in cost of sales for the three months ended June 30, 2025 and 2026, respectively.

2 Restructuring and related costs includes $4 and $12 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2025 and 2026, respectively.

3 Corporate restructuring and related costs of $23 for the three months ended June 30, 2025 includes $20 related to integration-related stock compensation expense attributable to AspenTech. 

Quarter Ended June 30,

Depreciation and Amortization

2025

2026

Control Systems & Software

$           135

$           128

Test & Measurement

119

120

Software & Systems

254

248

Sensors

32

34

Final Control

56

56

Intelligent Devices

88

90

Safety & Productivity

19

27

Corporate

11

12

Total

$           372

$           377

Table 5

EMERSON AND SUBSIDIARIES

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(DOLLARS IN MILLIONS, UNAUDITED)

The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis. The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

Quarter Ended June 30,

2025

2026

 Stock compensation (GAAP)

$               (71)

$               (68)

 Integration-related stock compensation expense

261

4

 Adjusted stock compensation (non-GAAP)

$               (45)

$               (64)

Quarter Ended June 30,

2025

2026

 Corporate and other (GAAP)

$               (72)

$                 (1)

 Corporate restructuring and related costs

3

6

 Acquisition / divestiture costs

38

28

 IEEPA tariff refunds

—

(82)

 Adjusted corporate and other (non-GAAP)

$               (31)

$               (49)

1 Integration-related stock compensation expense for the three months ended June 30, 2025 includes $24 related to AspenTech of which $20 is reported as restructuring costs, and $2 related to NI

Table 6

EMERSON AND SUBSIDIARIES

ADJUSTED EBITA & EPS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring and related costs, first year purchase accounting related items and transaction-related costs, discrete taxes, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.

     Quarter Ended June 30, 

2025

2026

Pretax earnings

$           734

$           916

Percent of sales

16.1 %

18.8 %

Interest expense, net

95

85

Amortization of intangibles

269

253

Restructuring and related costs

41

99

Acquisition/divestiture fees and related costs

44

32

IEEPA tariff refunds

—

(82)

Adjusted EBITA

$        1,183

$        1,303

Percent of sales

26.0 %

26.7 %

                    Quarter Ended June 30,               

2025

2026

GAAP earnings from continuing operations per share

$          1.03

$          1.28

Amortization of intangibles

0.37

0.35

Restructuring and related costs

0.06

0.13

Acquisition/divestiture fees and related costs

0.06

0.05

Discrete taxes

—

0.01

IEEPA tariff refunds

—

(0.11)

Adjusted earnings from continuing operations per share                                    

$          1.52

$          1.71

Table 6 cont.

Quarter Ended June 30, 2026

Pretax 
Earnings

Income 
Taxes

Earnings
from Cont.
Ops.

Non-
Controlling
Interests 

Net 
Earnings 
Common 
Stockholders

Diluted 
Earnings 
Per 
Share

As reported (GAAP)

$       916

$       198

$       718

$         —

$         718

$      1.28

Amortization of intangibles

253

1

59

194

—

194

0.35

Restructuring and related costs

99

2

25

74

—

74

0.13

Acquisition/divestiture fees and related costs

32

2

30

—

30

0.05

Discrete taxes

—

(7)

7

—

7

0.01

IEEPA tariff refunds

(82)

(19)

(63)

—

(63)

(0.11)

Adjusted (non-GAAP)

$     1,218

$       258

$       960

$         —

$         960

$      1.71

Interest expense, net

85

Adjusted EBITA (non-GAAP)

$     1,303

1 Amortization of intangibles includes $49 reported in cost of sales.

2 Restructuring and related costs includes $12 reported in cost of sales and selling, general and administrative expenses.

Reconciliations of Non-GAAP Financial Measures & Other                                                                      

Table 7

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions,
except per share amounts). See tables 4 through 6 for additional non-GAAP reconciliations.

2026 Q3 Underlying Sales Change

Reported

(Favorable) /
Unfavorable FX

(Acquisitions) /
Divestitures

Underlying

Control Systems & Software

7 %

— %

— %

7 %

Test & Measurement

23 %

— %

— %

23 %

Software & Systems

11 %

— %

— %

11 %

Sensors

8 %

(1) %

— %

7 %

Final Control

4 %

(1) %

— %

3 %

Intelligent Devices

6 %

(1) %

— %

5 %

Safety & Productivity

3 %

(1) %

— %

2 %

Emerson

7 %

(1) %

— %

6 %

Nine Months Ended June 30, 2026 Underlying Sales      
Change

Reported

(Favorable) /
Unfavorable FX

(Acquisitions) /
Divestitures

Underlying

Control Systems & Software

3 %

(1) %

— %

2 %

Test & Measurement

18 %

(3) %

— %

15 %

Software & Systems

7 %

(2) %

— %

5 %

Sensors

4 %

(2) %

— %

2 %

Final Control

4 %

(2) %

— %

2 %

Intelligent Devices

4 %

(2) %

— %

2 %

Safety & Productivity

3 %

(1) %

— %

2 %

Emerson

5 %

(2) %

— %

3 %

Underlying Growth Guidance     

2026 Q4
Guidance

2026

Guidance

Reported (GAAP)

~5%

~5%

(Favorable) / Unfavorable FX

-

~(1.5 pts)

(Acquisitions) / Divestitures

-

-

Underlying (non-GAAP)

~5%

~3.5%

2025 Q3 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization

of

Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$         271

24.2 %

$            114

$                 8

$         393

35.2 %

Test & Measurement

(26)

(7.2) %

107

—

81

22.4 %

Software & Systems

$         245

16.6 %

$            221

$                 8

$         474

32.1 %

Sensors

246

24.2 %

11

2

259

25.5 %

Final Control

351

23.1 %

30

8

389

25.5 %

Intelligent Devices

$         597

23.5 %

$              41

$               10

$         648

25.5 %

Safety & Productivity

$         103

19.2 %

$               7

$                —

$         110

20.4 %

2026 Q3 Adjusted Segment EBITA

EBIT

EBIT

Margin

Amortization
of
Intangibles

Restructuring
and Related
Costs

Adjusted
Segment
EBITA

Adjusted
Segment
EBITA
Margin

Control Systems & Software

$         285

23.8 %

$            100

$                6

$         391

32.6 %

Test & Measurement

11

2.6 %

108

13

132

29.6 %

Software & Systems

$         296

18.0 %

$            208

$               19

$         523

31.8 %

Sensors

303

27.7 %

11

9

323

29.7 %

Final Control

349

22.0 %

27

48

424

26.7 %

Intelligent Devices

$         652

24.3 %

$              38

$               57

$         747

27.9 %

Safety & Productivity

$          93

16.9 %

$               7

$               17

$         117

21.2 %

Total Adjusted Segment EBITA

2025 Q3

2026 Q3

Pretax earnings (GAAP)

$           734

$           916

Margin

16.1 %

18.8 %

Corporate items and interest expense, net

211

125

Amortization of intangibles

269

253

Restructuring and related costs

18

93

Adjusted segment EBITA (non-GAAP)

$         1,232

$         1,387

Margin

27.1 %

28.5 %

Free Cash Flow

2025 Q3

2026 Q3

2026E

($ in billions)

Operating cash flow (GAAP)

$         1,062

$         1,425

~$4.1

Capital expenditures

(92)

(102)

~(0.45)

Free cash flow (non-GAAP)

$           970

$         1,323

~$3.6

Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2026E figures are approximate, except where range is given.

SOURCE Emerson

DeltaV Automation Platform for Data Centers delivers precision control, industrial reliability and project expertise to accelerate time-to-compute

Accelerated Project Delivery: The DeltaV™ Automation Platform improves project schedules by decoupling hardware and software to allow for parallel execution and standardizing equipment-level and facility-wide control. Single Unified Platform: A unified monitoring and control layer integrates data center critical infrastructure, coordinating across the thermal, mechanical and electrical subsystems for real-time response to power and cooling load changes. Industrial-Grade Reliability: Built on decades of automation expertise, Emerson delivers real-time visibility and control that anticipates changes in cooling and power needs and helps maintain uptime at scale. AI-Enabled Portfolio: Embedded AI technologies in the DeltaV Automation Platform deliver actionable insights to the right people at the right time, helping simplify complex control and building the foundation for autonomous operations. , /PRNewswire/ -- As artificial intelligence (AI) accelerates data center demand and compresses project timelines, infrastructure complexity is at an all-time high. Global automation leader Emerson's (NYSE: EMR) DeltaV™ Automation Platform for Data Centers meets this challenge with an automation portfolio designed for AI-scale data centers – where speed, reliability and operational excellence are non-negotiable. The DeltaV Automation Platform for Data Centers delivers a unified automation system for the monitoring and control of data center critical infrastructure, bringing together the thermal, mechanical and electrical sub-systems under a highly scalable, flexible architecture.

In the AI era, faster time to market directly impacts revenue, customer commitments and competitive advantage. These compressed project timelines put tremendous pressure on supply chains, engineering and design teams, electricians, engineers and other project personnel who must rapidly complete the project while simultaneously meeting the reliability, flexibility and dynamic operational needs of modern data centers.

To bring gigawatt-scale facilities online faster while maximizing operational reliability, the DeltaV Automation Platform for Data Centers replaces point solutions and complex mappings with an integrated automation architecture from the inception of project design. Rather than separate, manual coordination of sub-systems, the DeltaV platform unifies them under a single unified control solution, reducing engineering effort, simplifying integration and creating consistency across commissioning, operations and maintenance.

"Data center performance is no longer defined by individual components alone, but by how effectively critical systems work together," said Nathan Pettus, president of Emerson's process systems and solutions business. "The DeltaV Automation Platform for Data Centers gives operators the unified visibility and coordinated control they need to commission projects predictably, operate reliably at scale and meet aggressive timelines. It's the foundation that turns speed into sustainable competitive advantage."

The DeltaV Automation Platform for Data Centers delivers:

Precision Control: Real-time monitoring and management of highly variable loads and cooling optimization – providing equipment level and facility-wide control that dynamically adjusts to changing thermal loads. Industrial-Grade Reliability at Scale: Integrated control and operational visibility in the DeltaV Automation Platform helps data center teams detect abnormal conditions earlier, respond faster and maintain consistent, reliable operations 24/7. Project Expertise: Repeatable, standardized designs and decades of mega-project expertise helps engineering teams reduce execution risk, compress timelines and deliver projects that perform reliably from day one. Lifecycle Partner for Continuous Improvement: Beyond project delivery, Emerson provides repeatable operating models and continuous intelligence that help data centers scale across their expansions and optimize lifecycle operations across multiple facilities and geographies. The DeltaV Automation Platform for Data Centers provides a comprehensive automation portfolio including its industry-leading DeltaV distributed control system (DCS) and DeltaV programmable logic controllers (PLCs) that connect to the DCS for system-wide process control. Both the DeltaV DCS and DeltaV PLCs incorporate context-specific AI solutions to accelerate engineering workflows, provide advanced process control and enable data centers to integrate AI optimization models. The DeltaV DCS and PLCs natively work together to deliver continuous intelligence – enabling faster builds, lower costs, predictable performance, and eventually, autonomous operations.

"AI data centers are pushing at the very limits of scale, speed and complexity, exposing the limitations of piecemeal automation architectures," said Pettus. "The DeltaV Automation Platform for Data Centers is built on intelligent, unified automation architectures instead of isolated systems to provide the flexibility not only to quickly reach first token, but also help data centers stay competitive, secure and relevant across the lifecycle of operation."

Additional resources: 

Learn more about DeltaV Automation Platform for Data Centers Join DeltaV Community Connect Emerson Exchange 365 Visit Emerson's Industrial Software Page on LinkedIn Visit Emerson's DeltaV Automation Platform Page on LinkedIn  Connect with Emerson via X Facebook LinkedIn YouTube  About Emerson
Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

SOURCE Emerson

The upcoming report from Emerson Electric (EMR - Free Report) is expected to reveal quarterly earnings of $1.68 per share, indicating an increase of 10.5% compared to the year-ago period. Analysts forecast revenues of $4.79 billion, representing an increase of 5.3% year over year.

Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Emerson Electric metrics that Wall Street analysts commonly model and monitor.

Analysts expect 'Net Sales- Intelligent Devices- Total' to come in at $2.64 billion. The estimate points to a change of -15.6% from the year-ago quarter.

According to the collective judgment of analysts, 'Net Sales- Software & Systems- Control Systems & Software' should come in at $1.18 billion. The estimate points to a change of +9% from the year-ago quarter.

Based on the collective assessment of analysts, 'Net Sales- Intelligent Devices- Final Control' should arrive at $1.58 billion. The estimate suggests a change of +41.4% year over year.

Analysts' assessment points toward 'Net Sales- Software & Systems- Test & Measurement' reaching $413.56 million. The estimate points to a change of +14.6% from the year-ago quarter.

Analysts forecast 'Net Sales- Software & Systems- Total' to reach $1.59 billion. The estimate indicates a change of +10.4% from the prior-year quarter.

View all Key Company Metrics for Emerson Electric here>>>

Shares of Emerson Electric have experienced a change of +4.5% in the past month compared to the -1.5% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), EMR is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Emerson Electric (EMR - Free Report) ended the recent trading session at $151.81, demonstrating a +1.68% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.21% for the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.

The maker of process controls systems, valves and analytical instruments's stock has climbed by 4.54% in the past month, exceeding the Industrial Products sector's loss of 3.42% and the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of Emerson Electric in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. In that report, analysts expect Emerson Electric to post earnings of $1.68 per share. This would mark year-over-year growth of 10.53%. In the meantime, our current consensus estimate forecasts the revenue to be $4.79 billion, indicating a 5.3% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.49 per share and a revenue of $18.79 billion, indicating changes of +8.17% and +4.28%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Emerson Electric. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Emerson Electric is currently sporting a Zacks Rank of #4 (Sell).

With respect to valuation, Emerson Electric is currently being traded at a Forward P/E ratio of 23.01. This represents a discount compared to its industry average Forward P/E of 23.59.

Investors should also note that EMR has a PEG ratio of 2.39 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Electronics stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.

The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

New NI Nigel AI capabilities embed context-aware AI authorship across the NI LabVIEW+ Suite, extending productivity gains to engineers globally

Adds AI-powered code generation to LabVIEW and automated test sequence creation to TestStand Cuts test development time and effort by up to 50 percent across representative engineering workflows Extends Nigel AI across the full NI LabVIEW+ Suite for end-to-end AI-assisted test workflows Keeps engineers in control with built-in security, governance and regulatory alignment , /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today announced new NI Nigel™ AI enhancements, including author code generation capabilities, across its full software portfolio. This next phase of Nigel AI introduces prompt-based code generation within NI LabVIEW™ and automated sequence generation in NI TestStand™, enabling engineers to move from design to validation more quickly while maintaining the rigor required in mission-critical applications. Based on internal benchmarking across representative engineering workflows, these capabilities reduce the time and effort required to develop and deploy test systems by up to 50 percent – accelerating test engineering productivity across industries like automotive, electronics, aerospace and defense, and semiconductors.

As product complexity increases and validation cycles grow more demanding across industries, engineering teams face pressure to deliver higher throughput without sacrificing quality. Emerson's approach embeds context-aware AI directly into the test environments engineers already use, helping streamline development while ensuring robust security, alignment with regulatory requirements such as the Cyber Resilience Act (CRA) and strong engineering oversight. This evolution from supportive advisor to intelligent author enables faster workflows while maintaining traceability, governance and informed human judgment.

"In one year, Nigel has evolved from an AI advisor to AI author, showing the strength of the NI platform and its ability to integrate the most in-demand technologies quickly for the benefit of our customers," said Ritu Favre, president of Emerson's test and measurement business. "By enabling purpose-built AI to generate code and test sequences within workflows, we're accelerating productivity while ensuring engineers remain in control of validation and decision-making."

With this release, Nigel AI is now available across the broader NI LabVIEW+ Suite, bringing AI-driven workflows to NI InstrumentStudio™, NI FlexLogger™ and NI VeriStand™. The expansion brings context-aware intelligence into interactive measurements, sensor-based datalogging and hardware-in-the-loop test environments in industries like semiconductors, electronics, aerospace and defense, and automotive. Engineers can now apply AI capabilities consistently across the full test lifecycle – from initial development through system validation and deployment.

Nigel AI is purpose-built for engineering environments and operates directly within structured test workflows. It leverages modular instrumentation, open software systems, configurable workflows, engineering code and structured data to produce outputs aligned with real-world system constraints. This approach enables more reliable, actionable results while maintaining the standards required for complex, multi-system validation.

Emerson continues to invest in AI-enabled software as part of its strategy to improve engineering productivity and address growing demand for automation in validation workflows. By integrating AI directly into core engineering tools and delivering measurable efficiency gains, the company is advancing the shift toward more intelligent, software-defined test systems.

With decades of expertise in test and measurement informing Nigel AI's capabilities, Emerson is well-positioned to help engineering organizations scale productivity, manage complexity, accelerate innovation and advance agentic operations through intelligent test automation.

To learn more about NI Nigel AI and the new code-generation capabilities, visit ni.com/nigel.

About Emerson
Emerson (NYSE:EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

SOURCE Emerson

If you watched Nvidia and the other semiconductor chip stocks soar and felt as if the artificial intelligence (AI) train left without you, take a breath. The thing about AI is that it doesn't run on software alone. It runs on a staggering amount of physical stuff: cooling systems, power controls, transmission lines, and the crews who install them all.

Some industrial companies supplying the backbone materials and services for AI haven't been bid up nearly as far as the marquee names, which means the door isn't closed. Here are three industrial stocks that still look worth a serious look.

Image source: Getty Images.

1. nVent Electric nVent Electric (NVT -1.09%) sits right in the sweet spot of one of AI's biggest headaches: excess heat. Packing thousands of scorching-hot chips into a data center requires advanced liquid cooling, and nVent has become a go-to supplier, having deployed more than 2 gigawatts of liquid cooling capacity already. Its momentum is real, with recent quarterly sales up more than 50% and its systems-protection business up even faster, and it was added to Nvidia's partner network, a stamp of approval that opens doors with the largest AI builders. With a next-generation cooling and power lineup rolling out in 2026, nVent is a direct play on data center growth that has flown under most investors' radars compared with the flashier cooling names.

Today's Change

(

-1.09

%) $

-1.76

Current Price

$

158.92

2. Emerson Electric Emerson Electric (EMR +0.27%) is the sleep-well option of the group. It makes the automation and power-management systems that keep complex facilities running, and data centers have become a booming market for it. Emerson was chosen to automate the on-site power generation for a massive 1.7-gigawatt AI data center, and orders for its flagship control platform recently jumped 74%, driven largely by these behind-the-meter power projects.

What I like here is the balance: Emerson is a Dividend King (a Dividend King is a company that's grown its dividend payment for at least 50 consecutive years. It has 69 straight years of payout increases and trades at a far more grounded valuation than pure AI plays. You get genuine AI exposure without paying a nosebleed price, plus a growing dividend while you wait.

Today's Change

(

0.27

%) $

0.37

Current Price

$

139.63

3. Hubbell Hubbell (HUBB -0.37%) is the quiet backbone of the group. It makes the unglamorous but essential electrical and grid gear, the connectors, enclosures, and utility hardware, that both power companies and data centers rely on to move electricity safely. As AI drives a surge in data center construction, Hubbell has leaned in hard: It recently lifted its 2026 profit forecast on strong demand from data centers and utilities, and it has been bolting on acquisitions, including DMC Power and a roughly $3 billion deal for NSI Industries, to deepen its reach into data-center power infrastructure. Both its electrical and utility segments are growing at double-digit rates. It's a silent leader in a market for data center electrical infrastructure worth tens of billions, and it typically trades at a friendlier valuation than the pure-play AI names.

Today's Change

(

-0.37

%) $

-1.77

Current Price

$

478.16

The catch worth naming Let me be honest, because "screaming buy" can be a dangerous phrase. None of these three stocks is dirt cheap now that the market has caught on to the AI-infrastructure story. They are more reasonably priced than Nvidia and the headline cooling and power stocks, but they aren't bargain-bin. All three also depend on having data center construction stay hot, so a pullback in that spending would hurt them all. These are relative values riding a powerful trend, not risk-free giveaways.

Here is the encouraging part: You didn't miss the whole AI trade, just the most obvious slice of it. The build-out still needs cooling, power, and grid connections for years to come, and nVent, Emerson, and Hubbell each sell something essential to that effort at prices friendlier than the stocks everyone already talks about. I would treat them as a second chance to invest in AI through the back door, buying gradually and keeping the data center cycle in mind. Sometimes the smartest way to catch a train you missed is to hop on at the next station.

Emerson Electric (EMR - Free Report) closed the most recent trading day at $136.58, moving -2.12% from the previous trading session. This change lagged the S&P 500's 0.19% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.

The maker of process controls systems, valves and analytical instruments's stock has dropped by 7.38% in the past month, falling short of the Industrial Products sector's loss of 2.49% and the S&P 500's gain of 0.55%.

Market participants will be closely following the financial results of Emerson Electric in its upcoming release. The company plans to announce its earnings on August 4, 2026. The company's earnings per share (EPS) are projected to be $1.68, reflecting a 10.53% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.79 billion, up 5.3% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.49 per share and revenue of $18.79 billion. These totals would mark changes of +8.17% and +4.28%, respectively, from last year.

Any recent changes to analyst estimates for Emerson Electric should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Emerson Electric presently features a Zacks Rank of #4 (Sell).

In terms of valuation, Emerson Electric is presently being traded at a Forward P/E ratio of 21.5. This represents a discount compared to its industry average Forward P/E of 23.05.

We can also see that EMR currently has a PEG ratio of 2.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.61.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 102, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

, /PRNewswire/ -- Emerson (NYSE: EMR) will report its third quarter results after market close on Tuesday, August 4, 2026. Emerson senior management will discuss the results during an investor conference call that same day, beginning at 4:30 p.m. Eastern Time, 3:30 p.m. Central Time.

All interested parties may listen to the live conference call and view presentation slides, which will be posted in advance of the call, by going to the Investors area of Emerson's website at https://ir.emerson.com and completing a brief registration form. A replay of the conference call will be available for three months following the webcast at the same location on the Emerson website.

About Emerson
Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Contacts

Investors

Media

Doug Ashby

Joseph Sala / Greg Klassen

(314) 553-2197

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

SOURCE Emerson

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Emerson Electric (EMR - Free Report) .

Emerson Electric currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy.

Of the 28 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 53.6% and 3.6% of all recommendations.

Brokerage Recommendation Trends for EMR

Check price target & stock forecast for Emerson Electric here>>>

While the ABR calls for buying Emerson Electric, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in EMR?Looking at the earnings estimate revisions for Emerson Electric, the Zacks Consensus Estimate for the current year has declined 0.1% over the past month to $6.49.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Emerson Electric. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Emerson Electric with a grain of salt.

Emerson Electric (EMR - Free Report) closed the most recent trading day at $137.91, moving -2.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.

Prior to today's trading, shares of the maker of process controls systems, valves and analytical instruments had gained 1.79% lagged the Industrial Products sector's gain of 4.88% and the S&P 500's gain of 2.14%.

The upcoming earnings release of Emerson Electric will be of great interest to investors. The company is forecasted to report an EPS of $1.68, showcasing a 10.53% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.8 billion, indicating a 5.48% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.49 per share and a revenue of $18.81 billion, representing changes of +8.17% and +4.41%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Emerson Electric. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Right now, Emerson Electric possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Emerson Electric is presently trading at a Forward P/E ratio of 21.8. This valuation marks a discount compared to its industry average Forward P/E of 22.99.

Also, we should mention that EMR has a PEG ratio of 2.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Electronics industry was having an average PEG ratio of 1.73.

The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Emerson Electric (EMR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this maker of process controls systems, valves and analytical instruments have returned -0.2% over the past month versus the Zacks S&P 500 composite's -2.9% change. The Zacks Manufacturing - Electronics industry, to which Emerson Electric belongs, has gained 0.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Emerson Electric is expected to post earnings of $1.68 per share for the current quarter, representing a year-over-year change of +10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.

For the current fiscal year, the consensus earnings estimate of $6.49 points to a change of +8.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $7.14 indicates a change of +10% from what Emerson Electric is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Emerson Electric.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Emerson Electric, the consensus sales estimate for the current quarter of $4.8 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $18.81 billion and $19.72 billion estimates indicate +4.4% and +4.8% changes, respectively.

Last Reported Results and Surprise HistoryEmerson Electric reported revenues of $4.56 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.54 for the same period compares with $1.48 a year ago.

Compared to the Zacks Consensus Estimate of $4.6 billion, the reported revenues represent a surprise of -0.76%. The EPS surprise was 0%.

Over the last four quarters, Emerson Electric surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Emerson Electric is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Emerson Electric. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.