Emerson Electric 2025 Q3 Earnings Strong Performance as Net Income Surges 66.5%

Emerson Electric reported its fiscal 2025 Q3 earnings on Aug 06th, 2025, with results exceeding expectations. The company delivered 3.9% revenue growth and a significant 66.5% year-over-year increase in net income. Management raised full-year guidance for both GAAP and adjusted EPS, reflecting confidence in the company's momentum and operational resilience.

Revenue

Emerson Electric’s total revenue for Q3 2025 rose 3.9% year-over-year to $4.55 billion. Final Control led the way with $1.12 billion in revenue, while Measurement & Analytical contributed $1.01 billion. Discrete Automation reported $649 million, and Safety & Productivity recorded $346 million. Control Systems & Software was the standout, bringing in $1.08 billion. Test & Measurement generated $361 million, and Eliminations/Interest accounted for a minor adjustment of -$16 million.

Earnings/Net Income

Emerson Electric’s earnings showed impressive growth, with EPS rising 79.3% to $1.04 in Q3 2025 from $0.58 in the same period in 2024. Net income surged 66.5% to $586 million, up from $352 million in Q3 2024. The company has maintained profitability for over 20 consecutive years, a testament to its strong operational discipline and efficiency.

Price Action

The stock price of Emerson Electric edged up 2.40% during the latest trading day, but declined 8.30% during the most recent full trading week and 3.23% month-to-date.

Post Earnings Price Action Review

A strategy of buying Emerson Electric (EMR) when its revenues beat expectations and holding for 30 days has historically shown favorable performance. Although EMR’s Q3 revenue missed estimates by -0.6%, it exceeded expectations on EPS by +0.66%, demonstrating profitability as a key driver. Historically, EMR outperformed the S&P 500 by 0.8% in the 30 days following its last earnings report. Analysts have reconfirmed their estimates in the past 30 days, supporting a stable outlook. While backtesting of similar strategies isn't specific, the general trend shows positive returns for investors buying on earnings strength. Looking ahead, the consensus expects +5.6% and +4.6% EPS and revenue growth, respectively, supporting continued investment over a 30-day horizon. The strategy remains viable, but investors should also consider broader market dynamics and company-specific fundamentals when making decisions.

CEO Commentary

Emerson President and CEO Lal Karsanbhai highlighted the company's "sustained momentum" in delivering strong underlying growth, profitability, and cash flow. He emphasized the team's resilience and operational excellence, as well as the positive momentum in key end markets. Karsanbhai also highlighted Emerson’s focus on advancing industrial software capabilities and launching "breakthrough innovations" that optimize customer operations, with "accelerated adoption of our digital solutions." The tone reflects confidence in Emerson’s ability to maintain strong performance through the fiscal year.

Guidance

Emerson updated its 2025 outlook, guiding to net and underlying sales growth of ~3.5%, GAAP EPS of ~$4.08, and adjusted EPS of ~$6.00. Operating cash flow is expected to reach ~$3.6B, and free cash flow is expected to hit ~$3.2B. The company anticipates returning ~$2.3B to shareholders via ~$1.1B in share repurchases and ~$1.2B in dividends. For Q4 2025, underlying sales growth is expected to range between 5% and 6%, with adjusted EPS guidance of $1.58–$1.62.

Additional News

Emerson announced a quarterly cash dividend of $0.5275 per share, payable on September 10, 2025, to stockholders of record on August 15, 2025. The company also declared a significant share repurchase of $7,244 million in the form of a full buy-in of the noncontrolling interest in AspenTech, which was fully acquired on March 12, 2025. This move consolidates control of AspenTech, which is now an independent business unit within the Control Systems & Software reporting segment. Emerson is hosting an investor conference on Nov. 20, 2025, in New York City, where management will provide further insights into the company’s strategy and future outlook.