Emerson Electric Co.

Emerson Electric Co.

EMR

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Market Cap$80.55B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Emerson Electric Co.Emerson Electric Co.331.52%12%4.40.7

Earnings Call Q2 2026

May 5, 2026 - AI Summary

Q2 performance + guidance raise (software-led resilience): - Underlying orders +5% YoY; underlying sales +5% (reported growth below expectations due to Middle East impact). - Strong segments: Test & Measurement +12% YoY; Ovation up mid-teens (power secular demand); Software ACV +9% YoY to $1.64B. - Profitability: adjusted segment EBITDA margin ~27.6% (benefited from favorable mix, price/cost + cost reductions); adjusted EPS $1.54 near top of guidance. - Raising 2026 adjusted EPS guidance: from a higher range to $6.45–$6.55 (raising bottom and midpoint). Margin guidance remains ~28% for 2026.
Forecast update: modest top-line pressure, offset by margins + EPS: - Full-year outlook updated for Middle East conflict: now expects sales growth ~4.5% and underlying growth ~3% (vs prior expectations). - Software renewal dynamic remained a key headwind: in the first half, contract renewal impacted Q2 sales growth by ~2 pts, and adjusted EBITDA margin by ~90 bps, and EPS by ~$0.09. - Demand visibility improves in the back half: backlog +9% YoY; management is confident in second-half plans based on backlog and orders momentum. - Q3 expectations: sales growth ~5.5% (underlying ~5%), adjusted segment EBITDA margin ~28%, adjusted EPS $1.65–$1.70.
Big negative / key challenge: Middle East disruption is the main downgrade risk: - Company has $1.2B business (~7% of sales) in the Middle East. Conflict caused ~1 point headwind to 2026 underlying sales. - Operational constraints included temporary manufacturing shutdown, field service below pre-conflict levels (down to <50% pre-conflict during March), and logistics disruption after Strait of Hormuz closure. - Customer damage identified at 47 sites; MRO/project activity slowed in the quarter, with improvement in April. Capacity/field service: sites largely operational by mid-April but at ~75% capacity; field service now at ~80% of pre-conflict levels. - Uncertainty remains for 6 more months; management “baked in” the full-year impact given uncertain severity/pace of recovery.

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$166.82

Target Price by Analysts

18.4% upsideEmerson Electric Target Price DetailsTarget Price
$52.59

Current Fair Value

62.7% downside

Overvalued by 62.7% based on the discounted cash flow analysis.

Share Statistics

Market cap$80.55 Billion
Enterprise Value$92.12 Billion
Dividend Yield$2.19 (1.52%)
Earnings per Share$4.07
Beta1.26
Outstanding Shares560,800,000

Return

Return on Equity12.05%ROE
Return on Assets5.81%
Return on Invested Capital11.19%

Valuation & Multiples

P/E Ratio32.99P/E Ratio
PEG120.29PEG
Price to Sales4.4Price to Sales
Price to Book Ratio3.91Price to Book Ratio
Enterprise Value to Revenue5.03
Enterprise Value to EBIT26.2
Enterprise Value to Net Income37
Total Debt to Enterprise0.15
Debt to Equity0.66Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 6, 2026
EPS Estimate
$1.55
Average shareholder expectation
Revenue Estimate
$4.60 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 5, 2026
EPS Estimate
$1.68
Average shareholder expectation
Revenue Estimate
$4.80 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.6915▲ 9.64%
Total Calls2,375,694▼ 9.94%
Total Puts1,642,761▲ 4.66%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %80.94%▼ 1.41%
Total Invested$59.41B▼ 3.22%
Investors Holding2,233▼ 34.00%

ESG Score

No data

About Emerson Electric Co.

CEO: David Farr

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the official revenue estimates and analysis for all tax legislation. Its work directly influences the design and impact of tax laws on corporate structures, capital investments, and the overall tax burden on Emerson Electric.

Finance

This powerful committee controls taxation and trade policy, directly impacting Emerson Electric's corporate profitability, investment incentives, global supply chains, and international sales through tariffs and trade agreements.

Appropriations

This committee directly allocates discretionary federal spending. Its decisions determine funding for defense programs, scientific research, and infrastructure projects, which can create significant demand and revenue streams for Emerson Electric's products.

Energy and Natural Resources

This committee directly oversees national energy policy, public lands, and the Department of Energy. Emerson Electric's industrial process control products are critical for the oil & gas, mining, and renewable energy sectors, all directly impacted by this committee's decisions.

Environment and Public Works

This committee regulates the EPA, impacting environmental compliance requirements which often necessitate process control and monitoring systems that Emerson Electric provides. It also influences infrastructure spending, directly benefiting industries that use EMR's products (e.g., water, wastewater, energy infrastructure).