Emerson Electric Co. Q4 2025 Earnings Recap

Emerson reported solid fourth-quarter results, with underlying sales up 4% and a notable increase in profitability, yet full-year growth fell slightly short of expectations due to softness in Europe and China.

Key Takeaways

• Fourth-quarter underlying orders grew 6%, driven by a robust 27% increase in Test & Measurement segment.
• Adjusted earnings per share reached $1.62 for the quarter, at the upper end of guidance; full-year adjusted EPS increased by 9%.
• The company expects 5.5% sales growth for fiscal 2026, with adjusted EPS projected between $6.35 and $6.55.
• Free cash flow improved to $3.24 billion, up 12% year-over-year, supporting robust capital return plans of $2.2 billion to shareholders.
• Emerson's annual contract value from software grew 10%, highlighting sustained investment in digital transformation.