Overview

* Emerson Q4 revenue rises 5% yr/yr but misses analyst expectations

* Adjusted EPS for Q4 beats analyst estimates

* Company announces 5% dividend increase and 50 mln share repurchase authorization

Outlook

* Emerson expects 2026 net sales growth of ~5.5%

* Company projects 2026 adjusted EPS of $6.35 to $6.55

* Emerson plans $2.2 bln in shareholder returns in 2026

Result Drivers

* MARGIN EXPANSION - Emerson cites margin improvements due to operational efficiencies and integration synergies

* ORDERS GROWTH - Mid-single-digit underlying orders growth driven by long-term secular trends

* INTEGRATION SYNERGIES - Integration of AspenTech and Test & Measurement contributed to achieving cost synergies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Miss $4.86 $4.90

bln bln (18

Analysts

)

Q4 Beat $1.62 $1.61

Adjusted (20

EPS Analysts

)

Q4 EPS $1.12

Q4 NET $637 mln

EARNINGS

Q4 $1.01

Operatin bln

g Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the electrical components & equipment peer group is "buy"

* Wall Street's median 12-month price target for Emerson Electric Co ( EMR ) is $153.00, about 10% above its November 4 closing price of $137.74

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)