EMR US S&P 500Russell 1000 Earnings call · transcribed from the recording
Emerson Electric (EMR) · Q4 2026 results and valuation
Share price: $167.06 · 2026-11-11
Emerson Electric manufactures and delivers industrial automation and control systems, climate control solutions, and measurement and analytical instrumentation. The company provides engineering services for industrial, commercial, and consumer markets. Source: Wikipedia
Results Q4 2026 vs Q3 2026 · previous quarter · published 4 Nov 2026 and 4 Aug 2026
Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
—
Figures not yet filed
Outlook given
2 · How management spoke
Upbeat
More upbeat than 85% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
New
One year ago at its investor conference in New York City, Emerson Electric More importantly, this team has positioned us to keep winning.
Valuation
Is Emerson Electric undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 9.3% growth a year (3-year revenue growth), the model's fair value is $83.88 a share — the stock trades 99% above it. Today's price assumes 17.1% growth a year.
Current price
$167.06
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.1% for 10 yrs
Fair value / share
$83.88
Buy below
$62.91
Price vs fair value
Overvalued 99%
Price vs buy-below price
Overvalued 166%
Management expects
Sales +5% · from the Q4 2026 report: “For fiscal 2027, we are guiding underlying sales growth of 5%.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
Free cash flow was up 9% to $3.5 billion, and Emerson Electric completed $1 billion of share repurchase.
Source quote
“Free cash flow was up 9% to $3.5 billion, and we completed $1 billion of share repurchase, retiring 7.2 million... and adjusted earnings per share rose 10% to $6.59, both above expectations. As expected, annual contract value of our software grew 10.1% to $1.7 billion.”
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Guidance
For fiscal 2027, Emerson Electric is guiding underlying sales growth of 5%.
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Guidance
Emerson Electric expects to deliver adjusted segment EBITDA margin of 29% and adjusted earnings per share of $7.25, reflecting meaningful progress on the pathway to its 2028 targets.
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Figure
Adjusted segment EBITDA margin expanded 160 basis points to 29.1%.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q4 2026. Ring: Q3 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“In 2027, we model mid-single-digit growth with continued momentum in the Middle East, which we expect to be up high single digits again, assuming the conflict does not escalate.”
“Intelligent devices is projected to grow 3% to 4% in the first quarter and 4% for the full year, supported by stable MRO, project activity and growth verticals, and strength...”
“75% came from our growth verticals, and I want to highlight a few large wins.”
Full figures
Q4 2026 figures are not available yet: the company files its quarterly report (10-Q) a few weeks after the call. This page compares what management said; the figures are added when the report is filed.
Topics
Most discussed now
- Underlying sales were up 7%, with software and systems accelerating to 14% growth, with strength in TESA measurement, up 15%,...
- New Worth noting that was about five cents that was offset by lower interest and share count, and Emerson Electric continues to...
- New I feel like Emerson Electric has put together a very responsible profitability plan as it moves into 27.
- The particular project that Emerson Electric wants in Qatar that I reference is a downstream petrochemical project, the largest expansion…
Faded since Q3 2026
- Dropped He has been a key member of the executive leadership team in Emerson Electric's automation business since 2017 and played a...
- Fading Cash exceeded expectations due to good operational performance, along with the impact of tariff refunds and the timing of tax...
- Fading Yes, so price has been strong and Emerson Electric is green on price cost.
- Fading The margin certainly on a GAAP basis improved in the quarter due to that $82 million that Emerson Electric saw.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Emerson Electric Co. reported net sales of $18.016 billion for fiscal year 2025, up from $17.492 billion in fiscal year 2024.
- Results of operations · SEC 8-K
Emerson reported net sales of $4.873 billion for the third quarter of 2026, representing a 7% increase compared to $4.553 billion in the third quarter of 2025.
- Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
Emerson reported net sales of $4.562 billion for the second quarter of 2026, up 3% from $4.432 billion in the same period of 2025.
- Material agreement; New financial obligation · SEC 8-K
Emerson Electric Co. entered into a $2 billion 364-Day Credit Agreement on February 10, 2026, replacing a $3 billion agreement from February 11, 2025.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Emerson Electric Co. reported net sales of $4.346 billion for the first quarter of 2026, representing a 4% increase from $4.175 billion in the first quarter of 2025.
- Results of operations · SEC 8-K
Emerson Electric Co. announced a management reorganization and the transition to five reportable segments starting in fiscal 2026, including the new Software & Systems group.