Emerson Electric Co. Q3 2026 Earnings Recap

Emerson's stock rose 4.9% following a quarter that saw broad-based demand growth and margin expansion, driven primarily by impressive performance in Software & Systems and strong order momentum. The company raised full-year guidance, supported by solid sales growth, improved margins, and robust wins across key verticals.

Key Takeaways

• Underlying orders increased 7%, with Software & Systems leading at 10% growth and notable strength in semiconductor (+70%) and Test & Measurement (+19%).
• Sales grew 6%, with remarkable growth in Test & Measurement and Ovation businesses, each up 23%.
• Adjusted segment EBITDA margin expanded 140 basis points to 28.5%, reflecting operational leverage amid solid execution.
• Adjusted EPS rose 13% to $1.71, exceeding the top of the guidance range; full-year adjusted EPS guidance raised to $6.55.
• Project funnel expanded 8% to $12.4 billion, driven by a $450 million sequential increase in power and continued investments in LNG and grid modernization.