Emerson Electric Co.

(New York Stock Exchange)
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Bullish +55

Compared to Estimates, Emerson Electric (EMR) Q4 Earnings: A Look at Key Metrics

Earnings report AI-generated analysis

πŸ“ˆ Emerson Electric reported Q4 revenue of $5.2 billion, representing a 7.1% year-over-year increase that beat the Zacks Consensus Estimate of $5.12 billion.

πŸ’° EPS reached $1.86 for the quarter, surpassing the prior year's $1.62 and exceeding analyst expectations by 0.54%.

πŸš€ Intelligent Devices Final Control sales surged 42% year-over-year to $1.73 billion, significantly outpacing the estimated $1.7 billion.

πŸ’» Software & Systems Control Systems & Software revenue grew 16.9% to $1.25 billion, beating the three-analyst average estimate of $1.2 billion.

πŸ“‰ Intelligent Devices Total sales declined 14.3% year-over-year to $2.92 billion, though this was offset by strong performance in other segments.

πŸ’΅ Adjusted EBITA for Software & Systems Total reached $553 million, substantially beating the consensus estimate of $491.76 million.

πŸ“Š Test & Measurement segment revenue increased 14% year-over-year to $465 million, exceeding analyst projections of $450.29 million.

πŸ† Safety & Productivity division reported $573 million in net sales, slightly above the estimated $570.44 million average.

πŸ“ˆ Stock shares returned +3.1% over the past month, outperforming the Zacks S&P 500 composite which fell -2% during the same period.

βš–οΈ The stock currently holds a Zacks Rank #3 (Hold), indicating potential performance in line with the broader market.

Bullish Signals
  • Emerson Electric reported Q4 revenue of $5.2 billion, beating the consensus estimate of $5.12 billion and growing 7.1% year-over-year.
  • EPS of $1.86 exceeded analyst expectations by 0.54%, demonstrating strong profitability relative to the prior year's $1.62.
  • Intelligent Devices Final Control sales surged 42% year-over-year to $1.73 billion, significantly outperforming the estimated $1.7 billion.
  • Software & Systems Control Systems & Software revenue grew 16.9% to $1.25 billion, beating analyst estimates of $1.2 billion.
  • Adjusted EBITA for Software & Systems Total reached $553 million, substantially exceeding the consensus estimate of $491.76 million.
  • Test & Measurement segment revenue increased 14% year-over-year to $465 million, surpassing analyst projections of $450.29 million.
  • Safety & Productivity division reported $573 million in net sales, slightly above the estimated $570.44 million average.
  • Shares returned +3.1% over the past month, outperforming the Zacks S&P 500 composite which declined -2%.
Risk Factors
  • Intelligent Devices Total sales declined 14.3% year-over-year to $2.92 billion, indicating weakness in this specific segment.
  • Adjusted EBITA for Intelligent Devices Total of $827 million missed the average analyst estimate of $836.28 million.
Full Analysis
Emerson Electric (EMR) reported fourth-quarter revenue of $5.2 billion for the period ended September 2026, marking a 7.1% year-over-year increase. The company's earnings per share reached $1.86, surpassing the prior year's figure of $1.62 and beating analyst consensus estimates by approximately 0.54%. This performance indicates solid underlying growth across its core industrial segments. Key revenue drivers included significant expansion in Intelligent Devices Final Control, which surged 42% year-over-year to $1.73 billion, and Software & Systems Control Systems & Software, which grew 16.9% to $1.25 billion. While the Intelligent Devices Total segment saw a decline of 14.3%, other divisions like Test & Measurement and Safety & Productivity also posted double-digit growth or beat expectations, contributing to an overall positive financial trajectory. Profitability metrics remained robust with Adjusted EBITA exceeding estimates across major segments, particularly in Software & Systems where total adjusted earnings reached $553 million against a consensus of $491.76 million. The stock has outperformed the broader market recently, rising 3.1% over the past month compared to a decline for the S&P 500 composite, reflecting investor confidence in its operational execution. Analysts maintain a Hold rating on the stock with a Zacks Rank of #3, suggesting expectations that performance will align with the broader market in the near term. The detailed breakdown reveals strong momentum in automation and control systems, offsetting softer performance in other device categories to deliver a comprehensive beat on Wall Street's consensus projections.