Emerson Lifts Fiscal 2026 Sales Growth Outlook
Net sales reached $4.87 billion in the quarter ended June 30, 2026, and the company raised full-year sales growth to about 5%.
Emerson Electric Co. (EMR) raised its fiscal 2026 net sales growth outlook to about 5% after third-quarter sales growth accelerated and cash generation recovered, and it lifted full-year adjusted earnings to about $6.55 a share.
The global automation leader reported net sales of $4.87 billion for the quarter ended June 30, 2026, up 7% from a year earlier. That followed a 3% increase to $4.56 billion in the second quarter ended March 31, 2026. Underlying sales, which exclude currency and significant acquisitions and divestitures, rose 6% in the third quarter after growing 0.5% in the second.
Underlying orders, which exclude AspenTech, rose 7% in the third quarter after a 5% increase in the second. President and Chief Executive Officer Lal Karsanbhai said demand was robust, led by Software & Systems and broad-based growth in North America and Asia. He said the company is raising full-year guidance, reflecting strong third-quarter performance and healthy demand, and that secular tailwinds continue to support investment in growth verticals.
Pretax earnings were $916 million, and pretax margin expanded 270 basis points to 18.8% from a year earlier. Adjusted segment EBITA was $1.39 billion, with a 28.5% margin. GAAP earnings were $1.28 a share. Adjusted earnings were $1.71 a share.
Adjusted EBITA was $1.31 billion, or 26.8% of sales. Restructuring and related costs were $99 million. The company recorded $82 million of IEEPA tariff refunds in the third quarter, with no such refund in the second.
Operating cash flow was $1.43 billion, up 34% from a year earlier, after falling 6% to $779 million in the second quarter. Free cash flow was $1.32 billion.
Emerson raised fiscal 2026 net sales growth guidance to about 5% from about 4.5% and lifted full-year adjusted earnings to about $6.55 a share from a $6.45–$6.55 range. Underlying sales growth guidance for the full year was raised to about 3.5% from about 3%. The 2026 outlook assumes returning about $2.2 billion through about $1 billion of share repurchases and about $1.2 billion of dividends.
For the fourth quarter of 2026, the company guided net sales growth of about 5%, underlying sales growth of about 5%, and adjusted earnings of about $1.85 a share. Full-year operating cash flow is guided at about $4.1 billion and free cash flow at about $3.6 billion.
The company declared a quarterly cash dividend of $0.555 a share, payable September 10, 2026.
Karsanbhai said the conflict in the Middle East remains fluid and that the team delivered results and supported customers around the world. He said secular tailwinds provide a solid foundation as the company finishes 2026 and looks ahead to 2027.