Emerson Electric Reports Q4 & FY2026 Results, Raises Dividend 7%, and Provides FY2027 Outlook

Executive Summary

Emerson Electric Co. (NYSE: EMR) filed a Form 8-K under Item 2.02 reporting its fourth quarter and full-year fiscal 2026 financial results, raising its quarterly dividend by 7%, and providing initial guidance for fiscal year 2027.

Key Financial Highlights

Q4 FY2026 Results

• Net Sales: $5,201 million, up 7% compared to $4,855 million in Q4 FY2025.
• Underlying Orders: Up 14% year-over-year.
• Underlying Sales: Grew 7% year-over-year.
• GAAP EPS: $1.33, up 24% compared to $1.07 in Q4 FY2025.
• Adjusted EPS: $1.86, up 15% compared to $1.62 in Q4 FY2025.
• Adjusted Segment EBITA Margin: 29.1%, expanding 160 bps from 27.5% in the prior-year period.
• Free Cash Flow: $916 million, up 9% year-over-year.

Full Year FY2026 Results

• Net Sales: $18,982 million, an increase of 5% compared to $18,016 million in FY2025.
• Pretax Earnings: $3,489 million (18.4% margin), up from $2,905 million (16.1% margin) in FY2025.
• GAAP EPS: $4.79, up 20% compared to $3.99 in FY2025.
• Adjusted EPS: $6.59, up 10% compared to $6.01 in FY2025.
• Operating Cash Flow: $3,978 million, up 8% year-over-year.
• Free Cash Flow: $3,535 million, up 9% year-over-year.

Capital Allocation & Dividend

• Dividend Increase: Emerson declared a 7% increase in its quarterly cash dividend to $0.595 per share, payable December 10, 2026, to stockholders of record as of November 13, 2026.

Fiscal Year 2027 Outlook

• Net Sales Growth: ~5%
• Underlying Sales Growth: ~5%
• GAAP EPS: ~$5.70 (Q1: $1.19 – $1.23)
• Adjusted EPS: ~$7.25 (Q1: $1.58 – $1.62)
• Operating Cash Flow: $4.3B – $4.4B
• Free Cash Flow: $3.8B – $3.9B
• Capital Return: Anticipates returning ~$3.8B to shareholders, comprised of ~$2.5B in share repurchases and ~$1.3B in dividends.