Emerson Electric 2025 Q4 Earnings EPS Drops 35.2% Despite 5.1% Revenue Growth

Emerson Electric (EMR) reported fiscal 2025 Q4 earnings on November 6, 2025, with revenue rising 5.1% year-over-year to $4.86 billion, outperforming the Zacks consensus estimate by $20 million. However, earnings per share (EPS) declined 35.2% to $1.13, aligning with the $1.62 non-GAAP figure but falling short of the $1.75 year-ago level. The company provided cautious 2026 guidance, forecasting 5.5% sales growth and EPS between $6.35 and $6.55.

Revenue

Emerson’s total revenue grew by 5.1% to $4.86 billion, driven by strong performance across key segments. Final Control led with $1.22 billion, while Measurement & Analytical contributed $1.15 billion. Discrete Automation saw a 5.1% year-over-year increase to $676 million, and Test & Measurement surged 13.3% to $408 million. Safety & Productivity added $360 million, and Control Systems & Software reached $1.07 billion, reflecting a 36.8% year-over-year jump. Eliminations/Interest recorded a net adjustment of -$23 million.

Earnings/Net Income

Net income fell 34.2% to $637 million, with EPS declining to $1.13 from $1.75 in 2024 Q4. Despite the drop, the company has maintained profitability for over two decades, demonstrating operational resilience. The earnings shortfall was attributed to higher software contract renewals and softer demand in Europe and China.

Price Action

Post-earnings, EMR’s stock edged up 2.29% during the latest trading day but declined 2.92% for the week and 1.72% month-to-date. Pre-market trading saw a 7.2% drop after the revenue miss and cautious 2026 outlook.

Post-Earnings Price Action Review

The stock’s mixed post-earnings performance reflected investor concerns over guidance conservatism and regional headwinds. While the 2.29% daily gain highlighted short-term optimism, the weekly and monthly declines underscored skepticism about sustained growth. Analysts noted the $1.62 non-GAAP EPS met expectations, but the $4.86 billion revenue fell short of the $4.9 billion forecast, prompting a 7.2% pre-market drop.

CEO Commentary

Lol Karstenby, CEO, emphasized robust order growth of 6% in Q4, driven by test and measurement (up 27%) and resilient industrial automation demand. He acknowledged challenges in Europe and China but highlighted strategic investments in shareholder returns, including a $2.2 billion return plan for 2026.

Guidance

Emerson updated its FY 2026 EPS guidance to $6.35–$6.55, below the $6.53 consensus, and Q1 2026 EPS to $1.40. Revenue guidance for FY 2026 was set at $19.0 billion, matching the $19.0 billion consensus.

Additional News

Emerson announced a 5.2% dividend increase to $0.555 per share, reflecting a 1.61% forward yield. The company also secured $2.2 billion in shareholder returns for 2026 through buybacks and dividends. Institutional investors, including Burney Co., reduced holdings by 8.7% in Q2, while analysts from Citigroup and JPMorgan raised price targets, citing long-term automation trends.

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The company’s updated FY 2026 guidance and strategic focus on industrial automation highlight its positioning in a resilient sector. Despite near-term challenges, Emerson’s robust free cash flow and shareholder return plans aim to bolster investor confidence.