Core Viewpoint - Emerson Electric held its 2026 Annual Meeting of Shareholders, where shareholders voted on the election of directors, fiscal 2025 performance, and several proposals, including a board declassification amendment that ultimately failed to pass. Group 1: Shareholder Meeting Outcomes - Shareholders voted to reelect directors Martin Craighead, Gloria Flach, and Matthew Levatich for three-year terms expiring in 2029, with substantial majority support [1][5] - The board declassification proposal did not receive the required 85% approval and was therefore not approved [5][8] - The advisory say-on-pay proposal for fiscal 2025 received approximately 90% support, while the ratification of KPMG as auditor garnered about 92% approval [4][7] Group 2: Financial Performance - Emerson reported a "solid fiscal 2025," with sales increasing by 3%, operating cash flow up by 11%, free cash flow up by 12%, and earnings per share (EPS) rising by 43% (adjusted EPS up by 9%) [4][10][16] - The company highlighted key portfolio actions, including the acquisition of Aspen Technology, integration of National Instruments, and divestiture of Copeland, aimed at strengthening its automation portfolio [4][11] Group 3: Voting and Proxy Details - As of the record date, Emerson had 562,302,093 shares of common stock outstanding, with proxies and ballots received for 495,357,307 shares, representing over 88% of shares entitled to vote [2] - The meeting was conducted in accordance with Emerson's bylaws and included four proposals, with the results to be disclosed in a Form 8-K filing within four business days [3][12]

Financial Performance and Key Metrics - Fiscal 2025 revenue grew 15% year over year to $9.22 billion [2] - Next Generation Security (ARR) increased 32% year over year to $5.58 billion [2] - PO grew 24% year over year to $15.8 billion [2] Business Line Performance - Network Security (NGS ARR) reached $3.9 billion, a 35% year over year increase [3] - Security Operating Platform (NGS ARR) saw a 25% year over year increase, reaching $1.7 billion [3] - Cortex's XSIAM customer base more than doubled year over year, indicating strong adoption [3] Market Data and Key Metrics - The cybersecurity landscape is shifting due to the emergence of generative and agentic AI, influencing product offerings [4] Company Strategy and Industry Competition - The focus for fiscal 2025 was on evolving product offerings to support customer adoption of AI tools [4] - The launch of Prisma AIRS, a comprehensive AI security platform, was a key strategic move [4] - The intent to acquire CyberArk was announced to enhance identity security capabilities [4] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of innovation and the role of employees in driving the company's success [5] - The company is committed to protecting customers from increasing cyber threats [5] Other Important Information - Shareholder proposals regarding executive compensation and board declassification were discussed, with mixed outcomes [10][18] Q&A Session Summary Question: Concerns about executive compensation linked to stock buybacks - A shareholder urged the board to adjust financial performance metrics to exclude the impact of share repurchases when determining executive compensation [10][11] Question: Proposal for declassifying the board - A shareholder argued that declassifying the board would improve accountability and align with best practices in corporate governance [13][14] Response from Management - The board recommended voting against the shareholder proposals, citing reasons outlined in the company's proxy statement [15]