Emerson Electric Co. Q2 2026 Earnings Recap

Emerson’s 2Q results outpaced expectations, driven by strong demand in Software & Systems and robust margin expansion, supporting a 9.2% stock gain post-earnings.

Key Takeaways

• Underlying orders grew 5%, fueled by 18% Software & Systems growth and 41% growth in Ovation’s power segment orders.
• Adjusted segment EBITDA margin expanded to 27.6%, surpassing expectations and reinforcing operational leverage.
• Adjusted EPS of $1.54 landed near the top of guidance, enabling an upward revision of full-year EPS to $6.45–$6.55.
• Annual contract value (ACV) for software increased 9% year-over-year to $1.64 billion, with continued strength anticipated into year-end.
• Backlog rose 9% year-over-year to support second half confidence, despite a 1-point revenue headwind from the Middle East conflict.