Emerson(US:EMR) ZACKS·2026-02-04 19:15Core Insights - Emerson Electric Co. reported first-quarter fiscal 2026 adjusted earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.41, with a year-over-year increase of 6% [1] - The company's net sales reached $4.35 billion, slightly below the consensus estimate by 0.12%, but showed a 4% year-over-year growth, primarily driven by the Software and Control segment [1] Business Segments' Performance - The Intelligent Devices segment generated net sales of $2.39 billion, reflecting a 4% year-over-year increase, with underlying sales also up 2%. Final Control sales increased to $1.39 billion, while Sensors sales reached $996 million [2] - The Software and Systems segment reported net sales of $1.45 billion, a 5% increase year over year, with underlying sales up 3%. Control Systems & Software sales were $1.04 billion, and Test & Measurement sales increased by 14% to $409 million [3] - The Safety & Productivity segment achieved net sales of $503 million, marking a 3% year-over-year increase, with underlying sales rising by 1% [4] Margin Details - The cost of sales rose by 4.9% year over year to $2.04 billion. The pretax earnings margin decreased to 17.8% from 18.6% in the previous year, while the adjusted EBITA margin remained stable at 26.3% [5] Balance Sheet & Cash Flow - At the end of the first three months of fiscal 2026, Emerson had cash and cash equivalents of $1.75 billion, up from $1.54 billion at the end of fiscal 2025. Long-term debt decreased to $7.58 billion from $8.32 billion [6] - The company generated net cash of $699 million from operating activities, down 10% year over year. Capital expenditure increased to $97 million from $83 million in the previous year. Dividends paid amounted to $312 million, and share repurchases totaled $250 million [7] Q2 Fiscal 2026 Outlook - For the second quarter of fiscal 2026, Emerson anticipates net sales growth of approximately 3-4% year over year and underlying sales growth of about 1-2%. Adjusted earnings per share are expected to be in the range of $1.50-$1.55 [8] FY26 Outlook - Emerson projects net sales growth of approximately 5.5% from the previous year, with underlying sales expected to rise by about 4%. Earnings per share are forecasted to be between $4.78 and $4.93, with adjusted earnings per share estimated at $6.40-$6.55. Operating cash flow is anticipated to be $4.0-$4.1 billion, and free cash flow is estimated at $3.5-$3.6 billion [10]