Emerson reported mixed results for Q1 FY2026, meeting sales commitments and exceeding profitability expectations with strong underlying orders growth. However, operating cash flow and free cash flow declined year-over-year, and reported sales growth was modest, impacted by unfavorable foreign exchange.
Reported Net Sales of $4,346 million, a 4% increase year-over-year.
positiveUnderlying orders grew 19%, indicating robust demand for automation technology.
positiveAdjusted Earnings Per Share increased 6% to $1.46.
positiveManagement commentary highlights strong execution and robust demand, particularly in Software & Systems.
positiveOperating Cash Flow decreased 10% to $699 million from $777 million in the prior year.
negativeFree Cash Flow decreased 13% to $602 million from $694 million in the prior year.
negativeReported sales growth was 4%, while underlying sales growth was 2%, indicating a 2 percentage point impact from FX and acquisitions/divestitures.
attentionAdjusted Segment EBITA Margin slightly compressed to 27.7% from 28.0% in the prior year.
attentionPretax Earnings Margin decreased to 17.8% from 18.6% in the prior year.
attentionCapital expenditures increased to $97 million from $83 million in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Control Systems & Software | N/A | — | — | — | 0.0% |
Test & Measurement | N/A | — | — | — | +11.0% |
Software & Systems | N/A | — | — | — | +3.0% |
Sensors | N/A | — | — | — | +1.0% |
Final Control | N/A | — | — | — | +2.0% |
Intelligent Devices | N/A | — | — | — | +2.0% |
Safety & Productivity | N/A | — | — | — | +1.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Emerson met sales commitments and exceeded expectations for profitability as our global teams continue to execute well.
We delivered a fourth consecutive quarter of strong underlying orders growth, and we are experiencing robust demand for our automation technology, led by Software & Systems, with strength in North America, India and the Middle East & Africa.
Emerson is accelerating innovation, introducing new products and delivering on the critical programs we highlighted at our 2025 investor conference.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.