Emerson Electric stock gets 2027 growth outlook after strong orders
Published on 11/11/2026 at 14:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth outlook and shareholder returns
- Fourth-quarter underlying orders increased 14%, supported by long-cycle projects in Emerson's growth markets.
- Management expects about 5% sales growth and about 3.8 billion US dollars in free cash flow for fiscal 2027.
- The board raised the quarterly dividend by 7% to 0.595 US dollars per share.
Emerson reported stronger fourth-quarter results and set its initial fiscal 2027 targets on November 4, after the fiscal year ended September 30. In its investor-relations release, the company said fourth-quarter sales rose 7% to 5.201 billion US dollars. Underlying orders increased 14%, while management cited broad demand across business groups and regions.
Emerson Electric stock traded at 152.93 euros on Lang & Schwarz at 14:13 CET on Wednesday, November 11, 2026. The industrial automation company has recently moved the focus of investors from its completed fiscal year to the order pipeline and cash-generation targets for the new year.
Orders strengthen the starting point
Adjusted earnings per share rose 15% year over year to 1.86 US dollars in the fourth quarter. Reported earnings per share from continuing operations increased 24% to 1.33 US dollars. Adjusted segment EBITA margin widened to 29.1% from 27.5%, while operating cash flow advanced 6% to 1.075 billion US dollars and free cash flow rose 9% to 916 million US dollars.
For the full fiscal year, sales reached 18.982 billion US dollars, up 5%. Underlying sales, which exclude currency translation and significant acquisitions and divestitures, increased 4%. Adjusted earnings per share rose 10% to 6.59 US dollars, and free cash flow climbed 9% to 3.535 billion US dollars.
Chief Executive Officer Lal Karsanbhai said the order increase was supported by exceptional long-cycle project activity in the company's growth verticals. He also pointed to a resilient portfolio and a robust backlog as the basis for confidence in the 2027 plan. Those comments support the investment case for automation demand, but the guidance remains exposed to project timing, industrial activity and the risks identified by Emerson in its forward-looking statements.
2027 targets raise the capital-return focus
Emerson expects fiscal 2027 net sales and underlying sales to grow about 5%. The company projects reported earnings per share of about 5.70 US dollars and adjusted earnings per share of about 7.25 US dollars. Operating cash flow is expected at 4.3 billion to 4.4 billion US dollars, with free cash flow targeted at 3.8 billion to 3.9 billion US dollars.
The plan assumes about 3.8 billion US dollars returned to shareholders, including about 2.5 billion US dollars of share repurchases and about 1.3 billion US dollars of dividends. Emerson also declared a 7% increase in its quarterly cash dividend to 0.595 US dollars per share, payable December 10 to shareholders of record November 13.
Emerson Electric Company at a glance
- Company: Emerson Electric Company
- ISIN: US2910111044
- Ticker: EMR
- Home exchange: New York Stock Exchange
- Lang & Schwarz quote: 152.93 euros at 14:13 CET on November 11, 2026
- Fiscal 2026 sales: 18.982 billion US dollars
- Fiscal 2027 adjusted EPS outlook: about 7.25 US dollars
The broader US equity market remains the relevant backdrop for Emerson investors, with the S&P 500 providing the main market reference.
Investors will next track execution against the 5% sales target, the conversion of the backlog into orders and cash flow, and the planned dividend payment. More news and analyses on Emerson Electric stock.
