Financial Data and Key Metrics Changes - The company booked over $550 million in orders in Q1, representing a 143% increase year-over-year [4] - Top line sales growth was 35%, with adjusted earnings per share increasing by 73% to a record $1.64 per share [5][12] - Adjusted EBIT margin expanded by 380 basis points to 19.4% [12] Business Segment Data and Key Metrics Changes - Aerospace and Defense segment saw orders over $380 million, up from $75 million in the prior year, with sales increasing by 76% [12][6] - Utility Solutions Group orders were up 10%, but sales only increased by 1%, primarily due to lower demand in the renewables business [14][8] - Test business had orders up 17% and revenue up 27%, with adjusted EBIT margins improving to 13.8% [16][12] Market Data and Key Metrics Changes - The company experienced strong order flow in the aerospace and defense markets, particularly from US and UK Navy programs [5][6] - The renewables market is currently recalibrating, affecting short-term investments, but long-term prospects remain positive [8][41] Company Strategy and Development Direction - The company is raising its full-year sales and earnings guidance due to strong Q1 results and record backlog [10][18] - Focus on strategic acquisitions in utility, aircraft components, and Navy segments to drive long-term growth [49] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term demand across markets, particularly in Navy and aerospace sectors [26] - The company anticipates a return to normal growth in the renewables sector by late 2026 [41] Other Important Information - Operating cash flow in Q1 was strong, more than doubling to $68.9 million [16] - Full-year adjusted earnings per share guidance increased to a range of $7.90 to $8.15, reflecting a growth of 31% to 35% compared to 2025 [18][19] Q&A Session Summary Question: Updates on A&D orders and ship set content - Management noted long-term demand is strong, but order activity can be lumpy, particularly for Navy contracts [26] Question: Revenue guidance appears conservative - Management expects Q1 to be the strongest growth quarter, with solid growth tapering down through the year [35] Question: Strength in Test business - The Test segment saw a return of traditional core markets, with strong orders in electromagnetic compatibility and medical shielding [38] Question: Military business outside Navy - Management highlighted broad-based strength in military aircraft, including significant orders for F-15EX fighters [52] Question: Capital allocation and M&A opportunities - The company is actively rebuilding a pipeline of M&A opportunities, focusing on strategic acquisitions in key segments [49]

Financial Data and Key Metrics Changes - Emerson's underlying sales growth was 2% year-over-year, with adjusted segment EBITDA margin at 27.7% and adjusted earnings per share at $1.46, reflecting a 6% increase year-over-year [10][19][24] - The backlog ended the quarter at $7.9 billion, up 9% year-over-year, with a book-to-bill ratio of 1.13 [19][63] Business Line Data and Key Metrics Changes - Software and systems reported a 3% underlying sales growth, driven by test and measurement, which grew 11% [19][23] - Intelligent devices grew 2%, while safety and productivity increased by 1% [19][24] - Ovation business saw a significant increase of 74% in orders, driven by large project wins [14][40] Market Data and Key Metrics Changes - North America orders were up 18%, with strong performance in power and LNG sectors [38][97] - The Middle East and Africa experienced a 9% growth, while Europe and China showed ongoing softness [14][38][75] Company Strategy and Development Direction - Emerson aims to return $10 billion to shareholders through share repurchase and dividends, with a focus on organic growth and operational excellence [7][11] - The company is aligned with secular tailwinds such as electrification, energy security, and nearshoring, expecting these to drive growth over the next three years [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 targets, supported by a good start to the year and operational excellence [10][11] - The company anticipates continued strong demand in North America, India, and the Middle East, while acknowledging challenges in Europe and China [14][75] Other Important Information - Emerson was named the 2026 Industrial IoT Company of the Year, highlighting its leadership in industrial IoT technology [11] - The company released DeltaV version 16, enhancing its software-defined automation vision [12] Q&A Session Summary Question: Can you break down the 9% order growth in Q1 between process and hybrid? - Management noted that power orders were driven by modernization and behind-the-meter power generating capacity at data centers, with significant growth in test and measurement orders [34][36][40] Question: What is the expected impact of AI on software growth? - Management believes AI capabilities will accelerate growth in software offerings, with minimal disruption expected [41][43] Question: Are the orders in power pushing beyond this year into multi-year phases? - Management confirmed confidence in backlog timing supporting sales into 2027, particularly in power and LNG sectors [46][47] Question: What is the outlook for weak verticals like chemicals? - Management indicated continued flat activity in Europe, particularly in chemicals, with a bearish outlook for China [75][76] Question: What is the opportunity in Venezuela? - Management acknowledged a long-established history in Venezuela and plans to mobilize for potential growth, particularly in power generation [104][106] Question: Any updates on tariffs and mitigation activity? - Management reported some positive developments regarding tariffs, particularly with China, while noting challenges with Mexico [115] Question: What are the green shoots in China? - Management highlighted good activity in the test and measurement space and broad portfolio business, despite overall softness [117]

Emerson Electric (NYSE:EMR) Q1 2026 Earnings call February 03, 2026 04:30 PM ET Company ParticipantsChigusa Katoku - VP in Equity Research for Electrical Equipment, Machinery, and Multi‑Industry SectorsDoug Ashby - Director of Investor RelationsJeffrey Sprague - Founder and Managing PartnerLal Karsanbhai - President and CEOMike Baughman - EVP and CFORam Krishnan - EVP and COOConference Call ParticipantsAndrew Obin - Managing Director and Senior Analyst for U.S. Multi‑Industry and Machinery SectorAndy Kaplow ...

Financial Data and Key Metrics Changes - In Q1 2026, underlying sales increased by 2% year-over-year, with adjusted segment EBITDA margin at 27.7% and adjusted earnings per share (EPS) at $1.46, reflecting a 6% increase year-over-year [9][10][17] - The company expects full-year sales growth of approximately 4% and adjusted EPS guidance raised to $6.40-$6.55 per share [10][23] Business Line Data and Key Metrics Changes - The software and systems segment saw underlying sales growth of 3%, driven by strong performance in test and measurement, which grew 11% [20][24] - Intelligent devices grew by 2%, while safety and productivity increased by 1% [20][22] - The Ovation business experienced a significant increase of 74% in orders, driven by large project wins [12][29] Market Data and Key Metrics Changes - North America, India, and the Middle East and Africa showed robust demand, with North America orders up 18% [12][32] - Europe and China experienced ongoing softness, with orders in Europe down low single digits and China down high single digits [12][32] - The overall order growth was 9%, with significant contributions from power and LNG sectors [12][29] Company Strategy and Development Direction - The company aims to return $10 billion to shareholders through share repurchases and dividends, with a focus on organic growth and operational excellence [5][10] - Emerson's automation portfolio is aligned with secular trends such as electrification and energy security, expected to drive growth over the next three years [4][5] - The company is committed to enhancing adjusted segment EBITDA margins by 240 basis points by 2028 [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 targets, supported by a strong start to the year and operational excellence [9][10] - The company noted that AI capabilities integrated into their software offerings are expected to accelerate growth rather than disrupt it [33] - Concerns were raised about the softness in Europe and China, particularly in the chemical sector, but there are signs of growth in test and measurement and power generation [44][60] Other Important Information - Emerson completed $250 million in share repurchases in Q1 and plans to return approximately $2.2 billion to shareholders [10][23] - The company was recognized as the 2026 Industrial IoT Company of the Year, highlighting its leadership in industrial IoT technology [10] Q&A Session Summary Question: Can you break down the 9% order growth in Q1 between process and hybrid? - Management noted that the growth was predominantly driven by modernization and behind-the-meter power generating capacity at data centers, with significant activity in test and measurement [29][30] Question: What are the expectations for the impact of AI on software growth? - Management indicated that AI capabilities are expected to complement and accelerate growth in software offerings, with minimal disruption anticipated [33] Question: How should we think about the cadence of longer-cycle orders translating into sales? - Management stated that the backlog supports mid-single-digit growth and that the build is across various business segments, particularly in control systems and software [40] Question: What is the outlook for the chemical sector in Europe and China? - Management acknowledged continued flat activity in Europe, particularly in chemicals, and a bearish outlook for China, with expectations of low single-digit declines [44][60] Question: What is the company's strategy regarding the opportunity in Venezuela? - Management highlighted a long-established history in Venezuela and plans to mobilize resources to capitalize on potential growth opportunities in the region, particularly in power generation [54][56]

Core Insights - VIAVI Solutions has launched the IRINS, a Low Earth Orbit (LEO)-aided inertial navigation system designed for full operation across land, air, and sea in denied, degraded, and disrupted space operating environments (D3SOE) [1][2] Group 1: Product Features - The IRINS integrates an inertial navigation system (INS), an altitude and heading reference system (AHRS), and a LEO PNT receiver, marking a significant advancement in VIAVI's assured Positioning, Navigation, and Timing (APNT) portfolio [1][4] - The system is designed to counter the increasing number of spoofing and jamming attacks affecting military and critical infrastructure, providing a resilient solution from a single vendor [2][3] - It combines capabilities to calculate altitude, position, velocity, and time data while minimizing bias to prevent drift, and includes a GNSS receiver with a Controlled Reception Pattern Antenna (CRPA) port for attack signal detection [4] Group 2: Strategic Importance - The IRINS represents VIAVI's strategy to mitigate vulnerabilities in positioning, navigation, and timing, integrating satellite-based timing with tactical-grade inertial measurement units (IMUs) for precise PNT in GNSS-denied environments [5] - Assured access to PNT is emphasized as critical for operations in contested environments, with the integration of Iridium PNT alongside VIAVI's INS and AHRS providing a resilient source of time and location data [5] Group 3: Technical Specifications - The IRINS is certified for IP67 and MIL-STD-810G environmental requirements, featuring a tactical-grade MEMS 3-axis accelerometer, gyroscope, and clock, along with embedded barometers and magnetometers [5] - The compact design measures 126.5 × 49.3 × 53.3 mm, housing all capabilities within a single enclosure [5]

Financial Data and Key Metrics Changes - Net revenue for Q2 was $369.3 million, at the high end of guidance, up 23.5% sequentially and 36.4% year-over-year [4] - Operating margin for Q2 was 19.3%, above guidance, increasing 360 basis points quarter-over-quarter and 440 basis points year-over-year [4] - EPS was $0.22, above guidance, up $0.07 sequentially and $0.09 year-over-year [5] Business Segment Data and Key Metrics Changes - NSE revenue for Q2 was $291.5 million, at the high end of guidance, up 45.8% year-over-year due to acquisitions [6] - OSP revenue for Q2 was $77.8 million, slightly above guidance, up 9.7% year-over-year, driven by anti-counterfeiting products [7][8] - NSE gross margin was 64.7%, down 10 basis points year-over-year, while operating margin was 15.6%, up from 8.7% last year [7] Market Data and Key Metrics Changes - Strong demand in the data center ecosystem and aerospace and defense sectors contributed to revenue growth [14] - The service provider business remained stable, with some opportunistic demand from cable operators transitioning to new standards [15] Company Strategy and Development Direction - The company is focusing on operational efficiencies through a restructuring plan, impacting approximately 5% of the workforce, with expected annual savings of about $30 million [10][11] - The strategy includes reinvesting savings into higher growth areas, particularly in data center and aerospace and defense applications [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by strong demand in the data center ecosystem and aerospace and defense sectors [14][15] - The company anticipates revenue for Q3 to be in the range of $386-$400 million, with NSE revenue expected to be between $304 and $316 million [12][13] Other Important Information - Total cash and short-term investments at the end of Q2 were $772.1 million, up from $549.1 million in Q1 [8] - The company plans to pay an earnout liability of about $75 million for Inertial Labs due to strong performance [13] Q&A Session Summary Question: Update on NSE business mix across data center, aerospace and defense, and telco - Management indicated a shift towards 45% data center, 40% service provider, and 15% aerospace and defense, with service provider showing slight recovery [21][22] Question: Visibility on demand and order book - Management confirmed improved visibility on demand, with multi-quarter commitments from hyperscalers [26][27] Question: Impact of restructuring on specific product areas - Restructuring is across multiple functions to enhance efficiency, not targeting specific areas [29][30] Question: Exciting defense and aerospace programs - Key drivers include resilient PNT systems for drones and autonomous systems, with strong growth expected [35][36] Question: Cadence of optical innovation in data centers - Demand is strong across all segments, with significant engagement from semiconductor vendors and module manufacturers [41][42] Question: Seasonal trends in service provider business - Management expects a tailwind in Q4 due to continued strength in data center and aerospace and defense sectors [88]

Core Insights - Keysight Technologies has launched a new Wireless Coexistence Test Solution aimed at automating and standardizing the testing of wireless device performance in crowded RF environments [1][2]. Product Features - The solution automates wireless coexistence testing, reducing manual setup and improving repeatability, which helps in identifying risks earlier during the development process [2][5]. - It includes a library of nearly one hundred predefined test scenarios aligned with ANSI C63.27, allowing engineers to efficiently execute tests without the need for custom setups [4]. - The platform integrates a wideband vector signal generator that covers frequencies from 9 kHz to 8.5 GHz, scalable to 110 GHz, with modulation bandwidths up to 250 MHz [4]. Technical Advantages - Built on OpenTAP, the solution offers scalable and configurable testing through a user-friendly GUI, enabling offline validation of test plans [5]. - The automation reduces test cycle time by over 50%, allowing engineers to focus more on analyzing device behavior rather than setup tasks [5]. Industry Relevance - In regulated markets like medical devices, wireless reliability is crucial for patient safety and regulatory approval, making the new solution essential for compliance [3][7]. - Keysight also provides consulting services to help teams track and measure key performance indicators tailored to specific devices and use cases [6].

Core Insights - New charging test solutions are being developed to accelerate the infrastructure for high-power and megawatt charging systems aimed at next-generation electric vehicles [1] Industry Developments - The advancements in charging test solutions are crucial for the evolution of electric vehicle technology, particularly in enhancing charging speeds and efficiency [1]

Core Insights - Keysight Technologies has launched the AI Software Integrity Builder, a software solution aimed at enhancing the validation and maintenance of AI-enabled systems to ensure their trustworthiness in safety-critical environments like automotive [1][6]. Industry Challenges - AI systems are complex and dynamic, often lacking transparency in their internal decision-making processes, which poses challenges for industries such as automotive that require safety, reliability, and regulatory compliance [2]. - Developers face difficulties in diagnosing dataset or model limitations, compounded by emerging standards like ISO/PAS 8800 and the EU AI Act that require explainability and validation without providing clear methodologies [2]. Solution Overview - The AI Software Integrity Builder offers a unified, lifecycle-based framework that addresses the critical question of ensuring safe behavior in AI systems during deployment [3]. - This solution provides engineering teams with the necessary evidence for regulatory compliance and supports continuous improvement of AI models [3]. Key Features - The solution includes capabilities such as dataset analysis to identify biases and inconsistencies, model-based validation to explain decisions and uncover correlations, and inference-based testing to evaluate model performance in real-world conditions [8]. - Unlike traditional tools that focus on isolated aspects of AI testing, Keysight's integrated approach covers dataset analysis, model validation, real-world inference testing, and continuous monitoring [5][8]. Strategic Importance - The Vice President of Keysight's Automotive & Energy Solutions emphasized the growing importance of AI assurance and functional safety in vehicles, highlighting the need for tools that align with regulatory requirements and provide safety evidence [6]. - The AI Software Integrity Builder enables a shift from fragmented testing to a comprehensive AI assurance strategy, ensuring that deployed AI systems are performant, transparent, auditable, and compliant by design [6].

Group 1 - The core focus of the article is on Keysight's presentation at CES 2026, highlighting its comprehensive ecosystem for automotive design, development, validation, and cybersecurity solutions [1]