10:57 AM EST, 11/05/2025 (MT Newswires) -- Emerson Electric ( EMR ) shares fell on Wednesday after the technology and software company issued a fiscal 2026 guidance below market estimates, while its fourth-quarter sales trailed analysts' expectations.

Full-year adjusted per-share earnings are anticipated to come in between $6.35 and $6.55, below the FactSet-polled consensus of $6.56. Sales are projected to grow about 5.5%. Analysts are looking for sales of $19.05 billion, implying 5.7% annual growth.

For the first quarter, the company expects adjusted EPS of about $1.40, trailing analysts' estimate of $1.51. Sales growth for the quarter is pegged at approximately 4%, compared with the $4.44 billion consensus, which indicates a 6.4% annual increase.

The company anticipates "muted demand" in Europe and China, though markets including in the Americas and the Middle East are expected to remain strong, Chief Financial Officer Mike Baughman said during an earnings call, according to a FactSet transcript.

Baughman projected a $120 million headwind within its control systems and software segment from a lower value of software contracts up for renewal in 2026.

"The underlying health of our software businesses remains robust," Baughman told analysts. "But having fewer contracts up for renewal adversely affects GAAP revenues."

The stock was down 3.8% intraday, trimming its year-to-date gains to 6.9%.

For the three-month period ended Sept. 30, sales grew 5% annually to $4.86 billion, below the $4.90 billion consensus. Adjusted EPS rose to $1.62 from $1.48 a year earlier, in line with analysts' estimates.

Fiscal 2025 sales rose 3%, while adjusted EPS increased 9% to $6.

"Emerson delivered a solid fiscal 2025, marked by continued margin expansion, robust cash generation and strong execution," Chief Executive Lal Karsanbhai said in a statement.

Price: 133.78, Change: -3.96, Percent Change: -2.87