KabuDo

NYSE: EMR · Electrical Components & Equipment

Emerson Electric

Emerson is a global automation company. Its Intelligent Devices group (valves, measurement, discrete automation, safety) and its Software and Control group (control systems and software, including AspenTech, plus test and measurement from National Instruments) serve process, hybrid and discrete industries. Over the past few years it transformed its portfolio: it sold a majority of Climate Technologies (Copeland) in 2023, bought National Instruments for $8.2 billion in October 2023, and took full ownership of AspenTech for about $7.2 billion in March 2025. Fiscal 2025 (ended September) revenue was $18.0 billion and net income $2.3 billion. In Q3 fiscal 2026 sales rose 7% and Emerson raised its full-year outlook. In October 2026 it switched to mark-to-market pension accounting, which recasts prior results.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 18, 2026 05:40 (SEC EDGAR) · Source 10-K filed: November 10, 2025

Built on10-K FY2025 · filed 2025-11-1010-Q (quarter ended 2026-06-30) · filed 2026-08-04

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
8.6%

Higher than 52% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
—

Latest fiscal year (FY2025)

ROIC minus WACC
—

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
—

Below 0 means more cash than debt

Cash conversion
1.35x

Higher than 38% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
4 of 5

Years the dividend per share rose, of the last 5

P/E today
36.5x

Latest close 2026-11-04; trailing 12 months to 2026-06-30

Beta
1.23

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$167.02close on 2026-11-04

Market cap$94B

P/E today
36.5x

At FY2025 year-end: 32.5x

Earnings: trailing 12 months to 2026-06-30

P/B today
4.6x

At FY2025 year-end: 3.6x

Book value at FY2025 year-end

EV/EBITDA today
—

At FY2025 year-end: —

EBITDA for FY2025

FCF yield today
2.8%

At FY2025 year-end: 3.6%

Free cash flow for FY2025

Dividend yield today
1.3%

Dividends per share for FY2025

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Jun 30, 2026.

These figures are behind: a newer quarter was reported on Nov 4, 2026, but SEC's structured data doesn't include it yet. Read the release ↗

  • Revenue↑ +7.0%$4.55B → $4.87B (vs. a year earlier)
  • Net income↑ +22.5%$586M → $718M (vs. a year earlier)
  • Diluted EPS↑ +23.1%$1.04 → $1.28 (vs. a year earlier)
  • Cash↑ +21.7%$1.79B → $2.18B (vs. previous quarter-end)
  • Long-term debt→ −0.4%$7.56B → $7.53B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Nov 4, 2026.

Management outlook • Issued

Fiscal 2027 guidance assumes returning about $3.8B, including about $2.5B of share repurchases. Source sentence
The following tables summarize the fiscal year 2027 guidance framework, which assumes returning ~$3.8B through ~$2.5B of share repurchases and ~$1.3B of dividends.

Key changes

  • Underlying orders up 14%. Source sentence
    "Underlying orders were up 14%, supported by exceptional long-cycle project activity in our growth verticals.
  • Quarterly dividend up 7% to $0.595. Source sentence
    Emerson also declared a 7% quarterly cash dividend increase to $0.595 per share of common stock payable December 10, 2026 to stockholders of record November 13, 2026.

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
EMERSON ELECTRIC CO
Headquarters
ST LOUIS, MO
Incorporated in
Missouri
Fiscal year end
09/30
Exchange & ticker
NYSE: EMR
Industry
Electrical Components & Equipment
CIK
32604

Workforce (as of FY2025 year-end)

  • Employees

    71,000

Source: Form 10-K (FY2025) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q1 FY2027

Quarter end: December 2026. In past years, Q1 results were released 34–38 days after quarter end (Feb 3, 2026; Feb 5, 2025; Feb 7, 2024). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around September 30.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 34–38 days after quarter end over the last 13 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q4 FY2026—Nov 4, 2026Not yet filed
Q3 FY2026Jun 30, 2026Aug 4, 2026 (+35 days)Aug 4, 2026 10-Q (+35 days)
Q2 FY2026Mar 31, 2026May 5, 2026 (+35 days)May 5, 2026 10-Q (+35 days)
Q1 FY2026Dec 31, 2025Feb 3, 2026 (+34 days)Feb 3, 2026 10-Q (+34 days)
Q4 FY2025Sep 30, 2025Nov 5, 2025 (+36 days)Nov 10, 2025 10-K (+41 days)
Q3 FY2025Jun 30, 2025Aug 6, 2025 (+37 days)Aug 6, 2025 10-Q (+37 days)
Q2 FY2025Mar 31, 2025May 7, 2025 (+37 days)May 7, 2025 10-Q (+37 days)
Q1 FY2025Dec 31, 2024Feb 5, 2025 (+36 days)Feb 5, 2025 10-Q (+36 days)
Q4 FY2024Sep 30, 2024Nov 5, 2024 (+36 days)Nov 12, 2024 10-K (+43 days)
Q3 FY2024Jun 30, 2024Aug 7, 2024 (+38 days)Aug 7, 2024 10-Q (+38 days)
Q2 FY2024Mar 31, 2024May 8, 2024 (+38 days)May 8, 2024 10-Q (+38 days)
Q1 FY2024Dec 31, 2023Feb 7, 2024 (+38 days)Feb 7, 2024 10-Q (+38 days)
Q4 FY2023Sep 30, 2023Nov 7, 2023 (+38 days)Nov 13, 2023 10-K (+44 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Final Control

    Final Control

  • Measurement & Analytical

    Measurement & Analytical

  • Discrete Automation

    Discrete Automation

  • Safety & Productivity

    Safety & Productivity

  • Control Systems & Software

    Control Systems & Software

  • Test & Measurement

    Test & Measurement

Segments from the FY2025 Form 10-K.

U.S. and worldwide share of flagship products/services

The filings reviewed give no market share figure for the company's products or services.

Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)

07

Recent strategic focusSite analysis

Recent developments.

  1. Q3 fiscal 2026

    Net sales $4.87B (+7%); GAAP EPS $1.28; free cash flow $1.32B; underlying orders +7%.

    Source: Q3 fiscal 2026 earnings release

  2. Pension accounting change

    Adopted mark-to-market accounting for pension actuarial gains and losses, effective for fiscal 2026 (announced October 13, 2026).

    Source: 8-K filed 2026-10-13

  3. Credit facility

    $2B 364-day credit facility (February 2026).

    Source: 8-K filed 2026-02-13

  4. AspenTech

    Bought the remaining AspenTech shares for about $7.2B (March 2025).

    Source: Form 10-K (FY2025)

Capex ÷ D&A (FY2025)

0.28x

Below depreciation — investment is being pared back

formulacapital expenditures ÷ depreciation & amortization

e.g.$431M ÷ $1,518M = 0.28x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

R&D-to-revenue ratio (FY2025)

4.3%

formularesearch & development expense ÷ revenue × 100

e.g.$771M ÷ $18,016M × 100 = 4.3%

termsResearch & development (R&D) · Revenue (net sales)

M&A spend (5-year total)

$16.38B

Latest year: $37M

Cash-flow-statement spending on acquisitions, net of cash acquired

Where the money goes, over time

Unit: $M. Capex went from $404M in FY2021 to $431M in FY2025

  • Capex
  • R&D
  • M&A spend

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-10

08

Key figures at a glanceFrom SEC data

FY2021–FY2025, 5 years.

Revenue (FY2025)

$18.02B

As reported in the 10-K

Revenue CAGR (4 years)

+8.6%▲favorable

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($18,016M ÷ $12,932M) ^ (1÷4) − 1 = 8.6%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2025)

—

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

ROE (FY2025)

10.9%▲favorable

5-year average: 32.5%

As reported in the 10-K

P/B (FY2025 end)

3.64x

formulafiscal year-end closing price ÷ book value per share

e.g.$131.18 ÷ $36.04 = 3.64x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2025 end)

—

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ▲

    Revenue grew +8.6% a year over 4 years (strong growth)

    From $12.93B in FY2021 to $18.02B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ―

    Equity ratio is 48.3% (a middling level)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 5 of 5 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 32.5% over 5 years (latest: 10.9%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Sells intelligent devices, control systems and design and optimization software to process, hybrid and discrete industries.

How money and goods flow at Emerson Electric
  1. 01 what it draws on

    Inputs & resources

    • Manufacturing and R&D ($771M in fiscal 2025)
    • Acquired software businesses
  2. 02 what it does

    Activities

    • Devices, control systems, software, test systems
  3. 03 who it serves

    Customers

    • Chemical, power and renewables, energy, life sciences, metals and mining, automotive, semiconductor and other industries
  4. 04 how money comes in

    How it earns

    • Intelligent Devices $12.40B
    • Software and Control $5.69B (fiscal 2025)

How the business makes money

  • Sales by destination in fiscal 2025: Americas 51%, Asia/Middle East/Africa 30% (China 10%), Europe 19%.
  • Total backlog of $8.6B at the end of fiscal 2025.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

Emerson benefits from tax holidays and faces trade-policy changes.

  • Government funding & tax credits

    Tax holidays

    About 60% of its tax holidays expire within two years, the rest by 2038.

    Supports the businessTouches: How it earns

    Source: Form 10-K (FY2025)

  • Trade & export rules

    Tariffs and trade rules

    Changes in trade restrictions, tariffs or taxes could hurt results.

    Constrains the businessTouches: Inputs & resources

    Source: Form 10-K (FY2025)

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100

  • Final Control

    4,380 (24%)

    profit 1,081 · margin 24.7%

  • Measurement & Analytical

    4,143 (23%)

    profit 1,112 · margin 26.8%

  • Discrete Automation

    2,521 (14%)

    profit 469 · margin 18.6%

  • Safety & Productivity

    1,356 (7%)

    profit 291 · margin 21.5%

  • Control Systems & Software

    4,205 (23%)

    profit 895 · margin 21.3%

  • Test & Measurement

    1,486 (8%)

    profit -68 · margin -4.6%

Source: Form 10-K (FY2025) — segment results Profit is segment earnings (earnings before interest and income taxes). AspenTech is part of Control Systems & Software.

10

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

11

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Process, hybrid and discrete industry customers worldwide.

Named by the company

No customer is named.

Suppliers

Components and materials.

Named by the company

The 10-K doesn't name suppliers.

12

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

The 10-K says no single company competes with Emerson in all product lines and names no competitors.

Competitors named in the 10-K

No competitor is named in the 10-K.

Peer group the company chose

2025 compensation comparator group (18), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

Similar lines of business, 1/3–3x Emerson's revenue and market cap, and companies identified by management as competitors.

Source: Proxy statement (2026)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

13

M&A historySite analysisShow

Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.

Emerson has reshaped itself through large deals.

Cash spent on acquisitions, FY2021–FY2025: $16.38B

  1. 2025-03-12

    AspenTech (remaining shares)

    About $7.2B

    Industrial software; now part of Control Systems & Software.

    Stated purpose (company)
    Not stated.

    Source: Form 10-K (FY2025)

  2. 2023-10-11

    National Instruments

    $8.2B equity value

    Software-connected automated test and measurement systems.

    Stated purpose (company)
    Not stated.

    Source: Form 10-K (FY2025)

14

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-10

Profit over time (operating → net)

Unit: $M

  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-10

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-10

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-10

Line itemFY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue12,93213,80415,16517,49218,016
Pretax income1,7622,4322,9032,0202,934
Net income (attributable)2,3033,23113,2191,9682,293
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—6.7%9.9%15.3%3.0%
Net margincalcnet income attributable to the company ÷ revenue × 10017.8%23.4%87.2%11.3%12.7%
Balance sheet ($M)
Total assets24,71535,67242,74644,24641,964
Total equity9,92316,31626,59827,50920,298
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable6,66510,3748,1577,68713,116
Equity ratio40.0%29.1%48.4%48.9%48.3%
ROE25.2%31.9%85.1%9.3%10.9%
Cash flow ($M)
Operating CF3,5752,9226373,3323,098
Investing CF-2,120-5,33412,415-5,360-593
Financing CF-2,4222,048-6,823-2,455-4,510
Free cash flowcalccash flow from operations − capital expenditures3,1712,6232742,9132,667
Cash and equivalents2,3541,8048,0513,5881,544
Per share & other
EPS ($)3.825.4122.883.434.04
BVPS ($)16.5917.5236.1737.9436.04
Dividend per share ($)2.022.062.082.102.11
Payout ratiocalcdividend per share ÷ diluted EPS × 10052.9%38.1%9.1%61.2%52.2%
P/E (x)24.713.54.231.932.5
P/B (x)calcfiscal year-end closing price ÷ book value per share5.684.182.672.883.64

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueNet incomeDiluted EPS
2026-06-30$4.87B+7.0%$718M+22.5%$1.28
2026-03-31$4.56B+2.9%$618M+27.4%—
2025-12-31$4.35B+4.1%$605M+3.4%$1.07
2025-09-30$4.86B+5.1%$637M-36.0%$1.12
2025-06-30$4.55B$586M$1.04
2025-03-31$4.43B$485M$0.86
2024-12-31$4.18B$585M$1.02
2024-09-30$4.62B$996M$1.73

Data left out of this analysis

  • FY2020: Later 10-Ks restated revenue for the Climate Technologies (Copeland) divestiture back to FY2021 only, so FY2020 is not comparable.

15

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

Not enough data (operating income, equity, etc.) to compute ROIC/WACC.

16

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

7.6%

Perpetual FCF growth: g = r − FCF ÷ EV = 10.2% − 2.5%

Past FCF growth (FY2021–FY2025)

-4.2%

Compound annual rate, 4 years

Past revenue growth (FY2021–FY2025)

+8.6%

Compound annual rate, 4 years

Inputs (FY2025): free cash flow $2.67B (operating CF − capex); enterprise value $105.57B = market cap $94B (latest close, 2026-11-04) + debt $13.12B − cash and short-term investments $1.54B; r = WACC of 10.2% using this page’s default assumptions (β 1.23, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$102.58B

FCF $2.67B ÷ (10.2% − 7.6%)

Theoretical ÷ actual enterprise value

0.97x

Below 1x: these assumptions value the business below the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r8.2%9.2%10.2%11.2%12.2%
0%0.31x0.27x0.25x0.23x0.21x
2%0.41x0.35x0.31x0.27x0.25x
4%0.60x0.49x0.41x0.35x0.31x
6%1.15x0.79x0.60x0.49x0.41x
8%12.63x2.11x1.15x0.79x0.60x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

17

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.11x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -1.9%

    A small share of profit rests on accounting estimates.

  • ✓

    Days sales outstanding: 84 → 61 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-11-10

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding
  • Days inventory outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$3,098M ÷ $2,293M = 1.35x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

e.g.($2,927M + $3,101M) ÷ 2 ÷ $18,016M × 365 = 61 days

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

e.g.($2,180M + $2,213M) ÷ 2 ÷ $8,497M × 365 = 94 days

termsInventory · Cost of revenue (COGS)

18

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
82.5%
Directors & officers (shares)
<1%
Everyone else (est.)
17.5%

individuals and other non-13F holders

Directors & officers (voting power)
<1%

no separate voting figure; shown as shares

Institutional-ownership rank
287 of 416

1 = most institutional; 69% of covered companies have more

Beta (adjusted)
1.23

above 1 = swings more than the market

  • 460.3M shares reported by 2,287 13F filers ÷ 557.8M shares outstanding on 2026-06-30. Option positions are excluded.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2025-12-12 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-06-30)

19

Strengths & weaknessesSite analysis

Strengths

  1. 1. Automation focus

    After its portfolio changes, Emerson describes itself as a global automation leader.

    Evidence: Form 10-K (FY2025)

  2. 2. Margin improvement

    Software and Control segment margin rose from 5.2% to 14.5% in fiscal 2025.

    Evidence: Form 10-K (FY2025)

  3. 3. Cash returns

    The fiscal 2026 outlook assumes about $1B of buybacks and about $1.2B of dividends.

    Evidence: Q3 fiscal 2026 earnings release

Weaknesses

  1. 1. Test & Measurement losses

    Segment earnings were −$68M in fiscal 2025, after heavy intangible amortization from the NI deal.

    Evidence: Form 10-K (FY2025)

  2. 2. Higher debt

    Interest-bearing debt rose to $13.1B in fiscal 2025, after the AspenTech buyout.

    Evidence: SEC EDGAR XBRL

20

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

32.5x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

1.61%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

52%

Dividends per share ÷ diluted EPS

FCF yield (FY2025)

3.6%

(Operating CF − capex) ÷ market cap

  1. 1. Dividend history

    Dividend per share rose each year: $2.02 (FY2021) to $2.11 (FY2025); $0.555 a quarter in fiscal 2026.

    What has to hold
    Cash flow grows.
    The other side
    Dividend growth is slow.

    Evidence: SEC EDGAR XBRL; Q3 fiscal 2026 earnings release

  2. 2. Shift to software

    Software and Control is 32% of sales.

    What has to hold
    Software margins keep rising.
    The other side
    P/E of about 32 in fiscal 2025.

    Evidence: Form 10-K (FY2025)

Fiscal year ends September 30. FY2020 is excluded because later 10-Ks restated revenue for the Climate Technologies (Copeland) divestiture but never restated FY2020. FY2023 net income includes the Copeland sale gain. Interest is shown net of interest income, as Emerson reports it.

21

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

Cash & short-term investments ÷ debt due within a year

0.3x

$1.54B vs. $4.8B

Interest coverage (operating income ÷ interest expense)

Not disclosed

The income statement has no operating income line.

Free cash flow ÷ dividends paid

2.2x

$2.67B vs. $1.19B (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
RevenueNo decline in the record—

Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Cash generation

    Operating cash flow of $3.1B in fiscal 2025.

    Source: SEC EDGAR XBRL

  • Diversified end markets

    Serves process, hybrid and discrete industries across regions.

    Source: Form 10-K (FY2025)

23

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
Med
1234
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Competition & technology shift

    Competition

    Company disclosure (summarized from the 10-K)
    Competes in each product line with companies, some of which have substantially greater resources.
    Company’s stated mitigation
    High-quality products at the best relevant global cost.
    This site’s assessment
    Impact Med / Likelihood Med
  2. 2M&A & integration

    Large acquisitions

    Company disclosure (summarized from the 10-K)
    Integration of NI and AspenTech and the related amortization.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  3. 3Geopolitics & supply chain

    Global exposure

    Company disclosure (summarized from the 10-K)
    About half of sales are outside the Americas; the CEO called the Middle East conflict fluid.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  4. 4Demand & macro

    Industrial demand

    Company disclosure (summarized from the 10-K)
    Orders depend on capital spending in process and discrete industries.
    Company’s stated mitigation
    Diversified end markets.
    This site’s assessment
    Impact Med / Likelihood Med

24

What changed in the risk factorsFrom SEC data

Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.

New or substantially reworded (5)

  • We May Use Artificial Intelligence in Our Businesses and in Our Products and Services, and Challenges With Managing its Use Could Result in Reputational Harm, Competitive Harm, and Legal Liability, and Adversely Affect Our Results of Operations

  • Our businesses increasingly rely on artificial intelligence solutions to optimize our operations, improve customer experiences, and enhance our products and services. Read more

    While the use of artificial intelligence presents significant

  • opportunities, it also introduces a range of risks that could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations.

  • Our artificial intelligence efforts subject us to risks related to accuracy, intellectual property infringement or misappropriation, data privacy, and cybersecurity, among others, and if our use of artificial intelligence becomes controversial, we may experience brand or reputational harm, competitive harm, or legal liability. Additionally, our competitors or other third parties may incorporate artificial intelligence into their products, services or operations more quickly or successfully than us, or develop superior products and services with the aid of artificial intelligence, which could impair our ability to compete effectively and adversely affect our results of operations. Finally, the regulatory landscape surrounding artificial intelligence is rapidly evolving and the use of artificial intelligence may be subject to new legal or regulatory requirements, the impact of which may…

  • The recent changes in U.S. trade policy involving the application or increase of tariffs and the subsequent retaliatory measures against the U.S. Read more

    have created a dynamic environment that may have a material adverse impact on our business. While we have deployed strategies to mitigate the impact of these dynamic trade policies, there is no assurance that we will be able to mitigate the full impact of all such tariffs, retaliatory tariffs or other trade policies that have or may develop in this rapidly changing environment. Increasing trade tensions and changes in trade policies have the potential to adversely impact our costs, the demand for our products, our supply chain and the global economy, which may have an adverse impact on our business, including operating and financial results and conditions.

No longer in the text (2)

  • Our Portfolio Actions Including the Proposed Acquisition of the Remaining Interest in AspenTech Not Already Owned by the Company and the Process to Explore Strategic Alternatives for the Company's Safety & Productivity Segment May Not Be Completed or Completed on the Terms and Conditions Contemplated, or With the Expected Benefits

  • On November 5, 2024, the Company announced a proposal to acquire all outstanding shares of common stock of AspenTech not already owned by Emerson for $240 per share in cash, which implies a fully diluted market capitalization for AspenTech of $15.3 billion and an enterprise value of $15.1 billion, and would be financed from cash on hand, committed lines of credit and/or other available sources of financing. Also on November 5, 2024, the Company announced that it is exploring strategic alternatives, including a cash sale, for its Safety & Productivity segment. No assurance can be given whether the proposal or the review will lead to one or more transactions. We can make no assurance as to the completion, terms, timing, costs or benefits anticipated from any such transactions. Unforeseen developments, including delays in obtaining various tax, regulatory and other approvals, could delay…

Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Nov 10, 2025 ↗ with the 10-K filed Nov 12, 2024 ↗.

25

What to watch going forwardSite analysis

  • Fiscal 2026 outlook: net sales growth about 5% and GAAP EPS about $4.89.
  • Recast results under mark-to-market pension accounting.
  • Software & Systems order growth.

26

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 18, 2026 05:40 (SEC EDGAR) · Source 10-K filed: November 10, 2025

Built on10-K FY2025 · filed 2025-11-10

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Emerson Electric’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.