Start here if you're new
what it is
Emerson sells the hardware and software factories use to run plants, save energy, and avoid very expensive downtime.
how it gets paid
Last year Emerson Electric made $18.0B in revenue.
why it's growing
Full-year sales grew at a single-digit clip (e.g. ~4% in recent commentary)— the absurd 271% vs. prior year in some feeds is a comparability / segment reclassification artifact, not organic growth.
what just happened
Quarterly revenue reached $4.3B, but adjusted EPS of $1.46 came in below the $1.50 consensus estimate.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
75/100 earnings predictability — reasonably predictable
22.7x trailing p/e — priced about right
1.6% dividend yield — cash in your pocket every quarter
16.0% return on capital — nothing to write home about
xvary composite: 76/100 — average
What they do
Emerson sells the hardware and software factories use to run plants, save energy, and avoid very expensive downtime.
You do not swap out factory controls like you swap phone chargers. Switching costs (changing suppliers is painful and expensive) keep customers around, and 69% of 2025 revenue came from Intelligent Devices, the gear sitting inside real operations. Add 71,000 employees and 59% of sales outside North America, and you get a service footprint that is hard for smaller rivals to match.
How they make money
$18.0B
annual revenue · underlying sales growth ~single digits vs. prior year (ignore triple-digit screen noise)
total revenue
$18.0B
~low %
The products that matter
process control hardware
pressure regulating products
69% repeat revenue
These products handle compressed air, natural gas, and steam across industrial sites, and 69% repeat revenue tells you customers come back instead of rebidding every cycle.
repeat-driven
factory and plant automation
automation systems
~28% adj. segment EBITA margin (not same as company op margin)
Segment-adjusted EBITA can sit ~28% while consolidated operating margin is a different line (~35% here)— do not merge the two without the segment bridge.
moat
building and climate controls
commercial & residential solutions
$7.2B segment
It is a $7.2B business growing 3%. Not the flashy piece, but it adds diversification when industrial spending gets uneven.
stability
Key numbers
35.0%
operating margin
Operating margin → profit left after running the business → at 35.0%, Emerson turns a lot of each sales dollar into real operating profit.
$18.0B
annual revenue
This is the current size of the business, and the 2026 target of $19.0B means management still needs another $1.0B of sales.
16.0%
return on capital
Return on capital → profit earned on money invested in the business → 16.0% says Emerson is not just big, it is efficient.
$8.3B
long-term debt
That is only 10% of capital, which helps explain the A+ balance sheet and gives management room if industrial demand gets messy.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $8.3B (10% of capital)
- net profit margin 20.0% — keeps 20 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in EMR 3 years ago → it's now worth $15,200.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Quarterly revenue reached $4.3B, but adjusted EPS of $1.46 came in below the $1.50 consensus estimate.
Sales still grew 4% vs. prior year, helped by pricing and product mix. Gross margin was 58.0%, which tells you the core business is still producing healthy economics.
~$4.3B
quarter revenue
$1.46
adj. quarter EPS
58.0%
gross margin
the number that mattered
The 58.0% gross margin matters most because margin strength gives Emerson a buffer if order growth cools.
-
emerson electric recently closed its fiscal 2025 year (ended september 30th) on a solid note.sales increased at a single-digit clip over the three- and 12-month periods, to $4.85 billion and $18.01 billion, respectively.
-
a favorable product mix and higher pricing drove the top-line momentum.share earnings advanced at a more-rapid pace during the fourth quarter and full year, to $1.62 and $6.00 a share, respectively. however, investors should note that vs. prior year comparisons are difficult since 2025 results, and onward, are based on adjusted bottom-line performances.
-
the near-term outlook is upbeat, as we forecast single-digit sales and earnings progress in fiscal 2026.
-
the company continues to focus on capturing greater market share in the automation space.
-
it is doing so through innovation and the creation of value-added products and services.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
The top threat is industrial demand softness in China and Europe, because this story depends on margins staying strong while growth stays merely decent.
high
china and europe industrial demand weakness
Shares fell 6% in a recent week as investors reacted to weaker industrial demand in China and Europe despite continued order growth.
If that softness spreads, the 9% underlying order growth story starts looking temporary.
med
TotalEnergies deal renewal volume
Lower renewal volume in the TotalEnergies deal has already taken roughly 100 basis points off adjusted segment EBITDA margin.
A slower recovery here would make 27.7% margin harder to defend.
med
middle east geopolitical tension
Oil price volatility and regional tension can make energy customers pause or delay projects, even if they do not cancel them outright.
That matters because energy remains a meaningful end market for Emerson's automation portfolio.
med
multiple compression if margins slip
At 22.7x trailing earnings, EMR does not trade like a distressed cyclical. If growth stays single-digit and margin fades, the stock can rerate lower without a dramatic earnings miss.
You are paying for resilience. The market will notice if it disappears.
If demand softness spreads, it hits the $10.8B Automation Solutions segment first and pressures the 27.7% margin supporting today's valuation.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
q2 2026 earnings report
Estimated May 6, 2026. Analysts expect $1.55 EPS. Another in-line quarter is fine. A margin wobble is not.
margin
27.7% segment ebita margin
This is the number holding the story together right now. If it slips, the 22.7x trailing P/E gets harder to defend.
demand
china and europe order trends
Management can offset some softness with mix and pricing. It cannot do that forever if regional demand keeps weakening.
strategy
automation mix getting bigger
Automation Solutions already contributes $10.8B versus $7.2B from commercial and residential. If that gap widens, the quality argument strengthens.
Analyst rankings
earnings predictability
75 / 100
Guidance tends to be usable. In human-speak, you usually do not wake up to a wild surprise here.
risk rank
2
Safer than roughly 80% of stocks. That is balance-sheet safety, not immunity from a cyclical slowdown.
price stability
80 / 100
This usually trades more like a quality industrial than a drama stock. Useful if you want exposure without constant chaos.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 836 buyers vs. 918 sellers in 3q2025. total institutional holdings: 0.5B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$108
$213
$136
current price
$161
target midpoint · +18% from current · 3-5yr high: $255 (+90% · 18% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive