GET DAILY SIGNALSEmerson Electric (EMR) Delivers +15% EPS Growth and Strong Order Momentum in Fiscal Q4
Key Takeaways
- Fiscal fourth-quarter net sales reached $5,201 million, up 7% year over year, while adjusted earnings per share (EPS) of $1.86 rose 15% and beat consensus estimates.
- Underlying orders jumped 14%, led by Software & Systems (up 18%) and Intelligent Devices (up 13%), signaling strong forward demand.
- Adjusted segment EBITA (earnings before interest, taxes, and amortization) margin expanded 160 basis points to 29.1%, and backlog grew 11% to $8.2 billion.
- Full-year 2026 adjusted EPS of $6.59 marked a sixth consecutive year of double-digit growth, with free cash flow up 9% to $3.5 billion.
- Emerson initiated fiscal 2027 guidance calling for about 5% underlying sales growth and adjusted EPS of roughly $7.25.
- The board raised the quarterly dividend 7% to $0.595 per share.
- For more detail on Emerson's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages for deeper context and analysis.
- Looking for data-driven trade ideas? Explore Trending AI Robots to see which strategies are drawing attention right now.
Placing the Results in Broader Context
Emerson Electric (EMR) wrapped up fiscal 2026 on September 30, 2026, and released its numbers on November 4, 2026. As a leader in automation and industrial technology, the company is well positioned amid trends in electrification, energy security, and nearshoring. Its order trends often serve as an early signal for broader industrial investment. The fourth quarter carries extra weight because it captures year-end project work, backlog conversion, and the margin outlook for the year ahead. With Europe and China remaining soft, attention centered on whether U.S. and Middle East strength could compensate. The latest figures provide a clearer view of demand and profitability across Emerson’s software, intelligent devices, and safety offerings.
Breaking Down the Quarter and Full-Year Numbers
Net sales for the quarter totaled $5,201 million, a 7% increase from $4,855 million the prior year and ahead of the roughly $5,118 million consensus. Adjusted EPS reached $1.86, up 15% from $1.62 and comfortably above the approximately $1.48 that analysts had projected. Underlying sales also grew 7%, with volumes adding four points and pricing contributing three. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Underlying orders rose 14%, driven by Software & Systems (+18%) and Intelligent Devices (+13%). Adjusted segment EBITA margin widened 160 basis points to 29.1%, backlog climbed 11% to $8.2 billion, and the book-to-bill ratio stood at 1.01. Quarterly free cash flow advanced 9% to $916 million.
For the full year, net sales increased 5% to $18,982 million, adjusted EPS grew 10% to $6.59, and free cash flow reached $3.5 billion, also up 9%. GAAP diluted EPS from continuing operations was $1.33 for the quarter and $4.79 for the year. The board approved a 7% dividend increase to $0.595 per share.
How the Market Reacted
Shares of EMR advanced roughly 1.45% to around $168.80 after the release, trading near the 52-week high of $171.25. Investors welcomed the broad beat, the 14% order acceleration, and margin expansion across all three business groups. Positive sentiment also drew support from the initial fiscal 2027 outlook and plans to return capital through roughly $2.5 billion in share repurchases and $1.3 billion in dividends. Offsetting factors included ongoing softness in Europe and China, which grew only 1% and stayed under pressure, along with management’s measured comments on pricing and possible margin softness in the first quarter.
Guidance and Factors Worth Monitoring
For fiscal 2027, Emerson expects approximately 5% underlying sales growth, an adjusted segment EBITA margin near 29%, and adjusted EPS of roughly $7.25, another 10% increase. Free cash flow is projected at $3.8 billion to $3.9 billion, with about $3.8 billion earmarked for shareholder returns.
Several areas merit close attention. Order momentum and backlog conversion will show whether the fourth-quarter pickup can be sustained or reflects project timing. Growth verticals such as power, LNG, life sciences, semiconductor, and aerospace and defense are expected to expand at a low-double-digit rate, while other automation markets may see only low-single-digit growth. Margin execution is another focus. Management anticipates more normalized pricing of about 2% in 2027 versus 3% in 2026 and noted that first-quarter margins could start slowly due to startup costs and project mix. Regional divergence also remains a consideration, with guidance assuming continued weakness in Europe and China and no major escalation in the Middle East.
Using Tickeron’s AI Tools in My Research
When reviewing industrial names like Emerson, I occasionally turn to Tickeron’s AI Screener to quickly filter peers and spot comparable setups across automation and technology sectors. It helps surface ideas based on patterns, fundamentals, and performance metrics without spending hours on manual screens.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
EMR's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for EMR turned positive on October 27, 2026. Looking at past instances where EMR's MACD turned positive, the stock continued to rise in 30 of 44 cases over the following month. The odds of a continued upward trend are 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on EMR as a result. In 57 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 63%.
Following a +2.70% 3-day Advance, the price is estimated to grow further. Considering data from situations where EMR advanced for three days, in 219 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 150 of 274 cases where EMR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 55%.
Bearish Trend Analysis
The 10-day RSI Indicator for EMR moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In 22 of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at 52%.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EMR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
EMR broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 32 (best 1 - 100 worst), indicating outstanding price growth. EMR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 48 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 62 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 80 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.554) is normal, around the industry mean (4.084). P/E Ratio (36.251) is within average values for comparable stocks, (38.189). Projected Growth (PEG Ratio) (1.837) is also within normal values, averaging (1.879). Dividend Yield (0.013) settles around the average of (0.032) among similar stocks. P/S Ratio (4.409) is also within normal values, averaging (186.943).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a developer of process controls systems, valves and analytical instruments
Industry IndustrialMachinery
Advertisement