Emerson Electric Co.

Q3 performance beat expectations; strong growth + margin + cash - Underlying sales +6% YoY, with Software & Systems +11% (Test & Measurement +23%) and Intelligent Devices +5%; growth verticals +27% (notably semiconductor +53% YoY and power +37%). - Adjusted segment EBITDA margin +140 bps to 28.5% (mix/volume favorable; price cost + cost reductions offset inflation). - Adjusted EPS $1.71, +13% YoY (operations contributed the full +$0.19 benefit). - Free cash flow (FCF) $1.3B, +36% YoY with 27.1% FCF margin; cash benefited from operational performance plus tariff refunds and tax timing shifting payments from Q3 to Q4.

Full-year 2026 outlook raised (good news): sales, EPS, and cash guidance up - Sales growth expectation raised to ~5% GAAP and ~3.5% underlying for the full year. - Adjusted segment EBITDA margin still expected ~28% (no change). - Adjusted EPS raised to ~$6.55 (from prior guidance). - FCF raised to ~ $3.6B for the year. - Q4 expectation: ~5% sales growth, ~28.5% adjusted EBITDA margin, adjusted EPS ~ $1.85.

Software momentum + contract value strength (and renewal dynamic flips in Q4) - Annual contract value (ACV) +9% YoY to $1.68B at quarter-end. - Q3 underlying Software & Systems sales grew 6% underlying (with Test & Measurement +23%), but management flagged a software renewal dynamic drag affecting the “apples-to-apples” growth/margins. - They expect the renewal dynamic to reverse in Q4, and guide Software & Systems full-year +6%; Test & Measurement +14% and Control Systems & Software +3.5% (including ~3 points of headwind from software renewals).