Emerson Electric stock enters 2027 after strong orders and outlook
Published on 11/09/2026 at 13:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSStrong orders shape fiscal 2027
- Emerson reported 14 percent underlying order growth and 7 percent underlying sales growth in the fourth quarter.
- Management targets about 5 percent fiscal 2027 sales growth and adjusted earnings per share of about 7.25 US dollars.
- The company plans to raise its quarterly dividend by 7 percent and return about 3.8 billion US dollars to shareholders.
Emerson reported a strong fiscal fourth quarter on November 4, with underlying orders rising 14 percent and underlying sales increasing 7 percent from a year earlier. In its Emerson investor release, management presented the figures for the quarter and fiscal year ended September 30, 2026.
Emerson stock traded at 147.05 euros on Lang & Schwarz at 13:34 CET on Monday, November 9, 2026. Investors are weighing the order momentum against the company's expectations for a more normalized operating environment in fiscal 2027.
Fourth-quarter execution improves
Fourth-quarter net sales reached 5.201 billion US dollars, up 7 percent from 4.855 billion US dollars a year earlier. Underlying sales growth was also 7 percent, excluding currency translation and significant acquisitions and divestitures.
Adjusted segment EBITA increased to 1.511 billion US dollars from 1.333 billion US dollars. The adjusted segment EBITA margin widened to 29.1 percent from 27.5 percent, a gain of 160 basis points. GAAP earnings per share rose 24 percent to 1.33 US dollars, while adjusted earnings per share increased 15 percent to 1.86 US dollars.
Software & Systems was the strongest reported business area, with sales growth of 14 percent. Intelligent Devices grew 5 percent and Safety & Productivity rose 2 percent. By region, the Americas grew 9 percent, Europe 1 percent, and Asia, the Middle East and Africa 7 percent.
Guidance points to continued growth
For fiscal 2027, Emerson targets about 5 percent growth in both reported and underlying sales. Management expects adjusted earnings per share of about 7.25 US dollars and an adjusted segment EBITA margin of about 29 percent. Operating cash flow is forecast at 4.3 billion to 4.4 billion US dollars, with free cash flow of 3.8 billion to 3.9 billion US dollars.
The outlook relies on continued demand in growth verticals and a strong backlog. Emerson also expects to return about 3.8 billion US dollars to shareholders through about 2.5 billion US dollars of share repurchases and about 1.3 billion US dollars of dividends. The quarterly cash dividend was raised 7 percent to 0.595 US dollars per share, payable December 10 to shareholders of record November 13.
Management's outlook combines moderate top-line growth with further margin expansion. For investors, the key test will be whether order momentum converts into revenue while weaker conditions in parts of Europe and China remain manageable.
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Broader sentiment is reflected in the S&P 500.
Further news and analyses on Emerson Electric stock will focus on the delivery of the fiscal 2027 targets.
Emerson Electric at a glance
- Company: Emerson Electric
- ISIN: US2910111044
- Ticker: EMR
- Primary exchange: NYSE
- Lang & Schwarz quote: 147.05 euros on November 9, 2026 at 13:34 CET
- Fiscal fourth-quarter sales: 5.201 billion US dollars, up 7 percent year over year
- Fiscal 2027 adjusted EPS outlook: about 7.25 US dollars
- Fiscal 2027 free cash flow outlook: 3.8 billion to 3.9 billion US dollars
