Emerson Electric (EMR) Q4 FY2026 Earnings Call: Guidance and Outlook
Formal guidance covers the first quarter and full year of fiscal 2027, outlining expectations for steady top-line growth, margin expansion, and significant capital return to shareholders.
About Emerson Electric. Emerson Electric Co. is an international technology and engineering firm that delivers diverse solutions to industrial, commercial, and residential clients across the Americas, Asia, the Middle East, Africa, and Europe. The company's operations are divided into two main segments: Automation Solutions, and Commercial & Residential Solutions.
GAAP and underlying sales growth of approximately 5%.
Q1 2027 Adjusted Segment EBITDA Margin
Adjusted segment EBITDA margin of 28%.
Q1 2027 Adjusted EPS
Adjusted earnings per share of $1.58 to $1.62.
Annual guidance
FY 2027 Sales Growth
GAAP and underlying sales growth of approximately 5% with 2% price realization.
FY 2027 Adjusted Segment EBITDA Margin
Adjusted segment EBITDA margin of 29%, up 80 basis points year-over-year.
FY 2027 Adjusted EPS
Adjusted earnings per share of $7.25, up 10%.
FY 2027 Free Cash Flow
Free cash flow of $3.8 billion to $3.9 billion.
Outlook
Regional outlook
The Americas are expected to be up mid-single digits in 2027, Europe is projected for a modest improvement to low single-digit growth, and the Middle East is modeled for high single-digit growth assuming the conflict does not escalate.
China market
Emerson is not planning for a recovery in China due to persistent headwinds in chemical and refining markets.
Growth verticals
Growth verticals are expected to grow low double digits in 2027, supported by electrification, energy security, and nearshoring.
Capital deployment
Emerson expects to return $3.8 billion to shareholders in 2027 through $2.5 billion in share repurchases and $1.3 billion in dividends.
Dombey's summary of the Emerson Electric Q4 FY2026 earnings call held Nov 4, 2026, written from the call itself. Every figure on this page was checked against what was said on the call, and quoted lines are management's own words; we do not add estimates or prices. The tone score is our read of management's wording, guidance and answers. Check figures against the company's SEC filings before acting. This is research, not investment advice.
