EMERSON ELECTRIC COEMR
EMERSON ELECTRIC CO Financial Overview 2021–2025
Updated Jul 10, 2026Emerson Electric executed a staggering $14.0 billion divestiture of its legacy Climate Technologies segment to fund an aggressive pivot into industrial software. This massive capital reallocation underscores the core investment thesis: Emerson has successfully shed its traditional conglomerate structure to become a higher-margin, pure-play global automation leader.
Due to these sweeping strategic shifts, top-line revenue actually contracted slightly over the long term, moving from $18.2 billion in FY2021 to $18.0 billion in FY2025. However, the company's underlying profitability reveals the true success of this transformation. By integrating the $8.2 billion National Instruments purchase and the $7.2 billion consolidation of AspenTech, Emerson drastically improved its operational efficiency. Gross margins expanded to 53.5% by Q2 2025, and adjusted diluted earnings per share hit $6.00 for the full fiscal year. The company’s cash generation remains highly durable, ending FY2025 with a 12% increase in free cash flow to $3.2 billion.
The market has clearly rewarded this transition toward automation and software-defined technology. At the close of FY2025, Emerson traded at $131.18 per share with a $73.8 billion market cap. This priced the stock at a premium 32.5x earnings multiple, reflecting strong investor confidence in the company's newly streamlined, high-growth portfolio.
Recent Developments (Q1 and Q2 2026)
Emerson Electric maintained its growth trajectory through the first half of fiscal 2026, led by steady performance in its Software & Systems and Intelligent Devices segments. Net sales rose 4% to $4.3 billion in Q1 2026, followed by a 3% increase year-over-year to $4.6 billion in Q2 2026. The company’s profitability saw significant boosts, with Q2 2026 diluted earnings per share surging 28% to $1.10, largely driven by lower acquisition and divestiture fees. On the governance and liquidity front, Emerson secured a new $2 billion unsecured credit facility and appointed Jennifer G. Newstead to its board.
Bulls will highlight the company's resilient pricing power, which drove a 3% increase in pricing during Q1 2026, alongside reaffirmed full-year adjusted EPS guidance of $6.45 to $6.55. Conversely, bears will note that volume saw a 1% decline in Q1 2026, and the stock trades at a lofty 34.3x earnings multiple as of the May 5, 2026 reporting date, leaving little room for error.
What to watch: timing of software renewals and geopolitical impacts in the Middle East; execution of $2.2 billion in planned shareholder returns
Rev
$18.02B
FY2025
NI
$2.29B
FY2025
EPS
$4.06
FY2025
OCF
$3.10B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
EMERSON ELECTRIC CO 8-K Report, Financial Results (May 5, 2026)
Emerson Electric Co. (EMR) has filed an 8-K report detailing key events on May 5, 2026. The filing includes a press release announcing the company's second-quarter financial results, alongside disclosures on executive and board changes. Investors should note the company's practice of providing non-GAAP financial measures for enhanced insight, alongside their standard GAAP reporting, with detailed explanations provided in their 10-K filings and the furnished press release. Furthermore, the report announces the election of Jennifer G. Newstead as a new Director, effective August 3, 2026. Ms. Newstead brings significant legal and corporate governance experience, having served as Senior Vice President and General Counsel at Apple and Chief Legal Officer at Meta. Her appointment to key board committees, including Compensation and Corporate Governance, underscores the company's commitment to strong oversight. She will receive a pro rata restricted stock unit award upon joining.
EMERSON ELECTRIC CO 8-K Report, Material Agreement (Feb 13, 2026)
Emerson Electric Co. (EMR) has entered into a new $2 billion 364-Day Credit Facility, dated February 10, 2026, with a syndicate of major banks, including JPMorgan Chase Bank, N.A., Bank of America, N.A., Citibank, N.A., and Goldman Sachs Bank USA. This unsecured facility, which expires on February 9, 2027, replaces a similar $3 billion facility that expired. Importantly, the company currently has no outstanding loans or letters of credit under this new facility and has no immediate intention to draw on it. The facility is intended to support general corporate purposes and serve as a liquidity backstop for the company's commercial paper borrowings, indicating a proactive approach to financial flexibility.
EMERSON ELECTRIC CO 8-K Report, Shareholder Vote Results (Feb 6, 2026)
Emerson Electric Co. (EMR) filed an 8-K report detailing the results of its 2026 Annual Meeting of Shareholders held on February 3, 2026. The key outcomes include the overwhelming re-election of all three nominated directors and the approval of the company's executive compensation plan through a non-binding advisory vote. Additionally, shareholders ratified the appointment of KPMG LLP as the independent registered public accounting firm for fiscal year 2026, indicating confidence in the company's financial oversight and reporting. However, a significant outcome was the failure of a proposal to declassify the Board of Directors. This proposal, which required an 85% supermajority vote for approval, did not meet the necessary threshold, meaning the current classified board structure will remain in place. This result suggests a divergence of opinion among shareholders on corporate governance matters, specifically regarding board structure and director tenure.
EMERSON ELECTRIC CO 8-K Report, Financial Results (Feb 3, 2026)
Emerson Electric Co. (EMR) has filed an 8-K report on February 3, 2026, to announce its first-quarter financial results, which were released on the same day. The report primarily furnishes a press release detailing these results, offering investors a snapshot of the company's performance for the period ending February 2, 2026. Investors should note that the press release includes non-GAAP financial measures, which are presented as supplemental information and should be considered alongside GAAP-based results. The company emphasizes that these non-GAAP metrics are useful for evaluation but may differ from those of other companies. Key to understanding the company's operational health, the press release references "underlying orders growth," defined as trailing three-month average orders growth versus the prior year, adjusted for currency, significant acquisitions, and divestitures. Investors are advised to review the full press release (Exhibit 99.1) for detailed financial figures and management's commentary. The filing also includes standard forward-looking statements and cautionary language, reminding investors that actual results may differ materially from management's expectations due to various risk factors, including global conflicts, economic conditions, and market demand.
EMERSON ELECTRIC CO 8-K Report, Financial Results (Nov 20, 2025)
Emerson Electric Co. (EMR) has announced a significant organizational restructuring, effective fiscal year 2026, by revising its management organization and updating its reportable business segments. This strategic move aims to better reflect the company's transformation and provide clearer insights into its operational performance. The company is consolidating its previously reported segments into five new ones: Control Systems & Software, Test & Measurement, Sensors, Final Control, and Safety & Productivity. Notably, Control Systems & Software and Test & Measurement will be reported as the "Software & Systems" group, while Sensors and Final Control will be combined into the "Intelligent Devices" group. This re-segmentation is accompanied by the release of supplemental unaudited historical results to aid investor understanding of how future performance will be presented. Investors should note that this information is supplemental and not a restatement of prior financial statements.
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