Revenue growth has decelerated to 2.9% in 2026Q2, though the strategic shift toward automation has successfully sustained gross margins above the 50% threshold at 53.1%.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 18.32B | 18.02B | 17.49B | 15.16B | 13.8B | 12.93B | 16.79B | 18.37B | 17.41B | 15.26B | 14.52B | 16.25B | 17.73B | 24.67B | 24.41B | 24.22B | 21.04B | 20.1B | 24.81B | 22.13B | 19.73B | 17.3B | 15.62B | 13.96B | 13.75B | 15.31B | 15.54B | 14.27B | 13.45B | 12.3B | 11.15B |
| Revenue Growth % | 4.03% | 3% | 15.34% | 9.86% | 6.74% | -22.96% | -8.64% | 5.54% | 14.05% | 5.11% | -10.63% | -8.37% | -28.12% | 1.05% | 0.78% | 15.13% | 4.66% | -18.97% | 12.09% | 12.15% | 14.04% | 10.82% | 11.87% | 1.53% | -10.21% | -1.5% | 8.94% | 6.12% | 9.34% | 10.3% | 11.36% |
| Cost of Goods Sold | 8.67B | 8.5B | 8.61B | 7.74B | 7.5B | 7.2B | 9.78B | 10.56B | 9.98B | 8.83B | 8.26B | 9.24B | 9.97B | 14.72B | 14.64B | 14.66B | 12.71B | 12.54B | 15.67B | 14.07B | 12.61B | 11.12B | 10.05B | 9.06B | 8.94B | 9.99B | 9.34B | 8.56B | 8.6B | 7.87B | 6.7B |
| COGS % of Revenue | - | 47.16% | 49.21% | 51.03% | 54.32% | 55.69% | 58.24% | 57.46% | 57.31% | 57.87% | 56.88% | 56.87% | 56.23% | 59.66% | 59.99% | 60.54% | 60.43% | 62.39% | 63.16% | 63.56% | 63.87% | 64.27% | 64.35% | 64.91% | 65.02% | 65.23% | 60.07% | 59.96% | 63.92% | 63.96% | 60.09% |
| Gross Profit | 9.64B | 9.52B | 8.88B | 7.43B | 6.31B | 5.73B | 7.01B | 7.82B | 7.43B | 6.43B | 6.26B | 7.01B | 7.76B | 9.95B | 9.77B | 9.56B | 8.33B | 7.56B | 9.14B | 8.06B | 7.13B | 6.18B | 5.57B | 4.9B | 4.81B | 5.32B | 6.21B | 5.71B | 4.85B | 4.43B | 4.45B |
| Gross Margin % | 52.66% | 52.84% | 50.79% | 48.97% | 45.68% | 44.31% | 41.76% | 42.54% | 42.69% | 42.13% | 43.12% | 43.13% | 43.77% | 40.34% | 40.01% | 39.46% | 39.57% | 37.61% | 36.84% | 36.44% | 36.13% | 35.73% | 35.65% | 35.09% | 34.98% | 34.77% | 39.93% | 40.04% | 36.08% | 36.04% | 39.91% |
| Gross Profit Growth % | - | 7.14% | 19.63% | 17.78% | 10.05% | -18.25% | -10.31% | 5.15% | 15.57% | 2.7% | -10.64% | -9.71% | -22.01% | 1.88% | 2.21% | 14.79% | 10.13% | -17.28% | 13.32% | 13.13% | 15.3% | 11.09% | 13.64% | 1.85% | -9.67% | -14.23% | 8.65% | 17.76% | 9.44% | -0.37% | 25.96% |
| Operating Expenses | 6.01B | 5.99B | 6.22B | 4.67B | 3.95B | 3.77B | 4.22B | 4.7B | 4.48B | 3.74B | 3.55B | 3.83B | 4.26B | 5.95B | 5.8B | 5.67B | 4.82B | 4.42B | 5.36B | 4.63B | 4.12B | 3.62B | 3.3B | 2.94B | 2.9B | 3.05B | 3.67B | 3.41B | 2.68B | 2.45B | 2.66B |
| OpEx % of Revenue | - | 33.23% | 35.55% | 30.78% | 28.61% | 29.16% | 25.17% | 25.56% | 25.74% | 24.52% | 24.43% | 23.56% | 24.02% | 24.1% | 23.74% | 23.41% | 22.9% | 21.97% | 21.61% | 20.93% | 20.89% | 20.94% | 21.15% | 21.03% | 21.12% | 19.93% | 23.59% | 23.88% | 19.91% | 19.93% | 23.83% |
| Selling, General & Admin | 5.15B | 5.1B | 5.14B | 4.19B | 3.61B | 3.49B | 3.99B | 4.46B | 4.27B | 3.61B | 3.46B | 3.73B | 4.16B | 5.65B | 5.44B | 5.33B | 4.82B | 4.42B | 5.15B | 4.57B | 4.08B | 3.6B | 3.28B | 2.94B | 2.9B | 3.05B | 2.99B | 2.77B | 2.68B | 2.45B | 2.19B |
| SG&A % of Revenue | - | 28.32% | 29.4% | 27.6% | 26.18% | 27.02% | 23.75% | 24.26% | 24.52% | 23.63% | 23.85% | 22.99% | 23.48% | 22.9% | 22.27% | 22% | 22.9% | 21.97% | 20.76% | 20.65% | 20.65% | 20.77% | 21.01% | 21.03% | 21.12% | 19.93% | 19.22% | 19.41% | 19.91% | 19.93% | 19.66% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 884M | 1.08B | 482M | 336M | 277M | 239M | 238M | 211M | 136M | 84M | 94M | 95M | 298M | 360M | 342M | 0 | 0 | 211M | 63M | 47M | 28M | 21M | 0 | 0 | 0 | 678.5M | 637.5M | 0 | 0 | 464.6M |
| Operating Income | 3.63B | 3.53B | 2.67B | 2.76B | 2.36B | 1.96B | 2.78B | 3.12B | 2.95B | 2.69B | 2.71B | 3.18B | 3.5B | 4.01B | 3.97B | 3.89B | 3.51B | 3.14B | 3.78B | 3.43B | 3.01B | 2.56B | 2.26B | 1.96B | 1.91B | 2.27B | 2.54B | 2.31B | 2.17B | 1.98B | 1.79B |
| Operating Margin % | 19.82% | 19.6% | 15.24% | 18.19% | 17.07% | 15.15% | 16.59% | 16.98% | 16.96% | 17.61% | 18.69% | 19.56% | 19.75% | 16.24% | 16.27% | 16.05% | 16.68% | 15.64% | 15.23% | 15.51% | 15.23% | 14.79% | 14.5% | 14.06% | 13.86% | 14.85% | 16.35% | 16.16% | 16.17% | 16.12% | 16.08% |
| Operating Income Growth % | - | 32.48% | -3.37% | 17.11% | 20.27% | -29.63% | -10.77% | 5.69% | 9.82% | -0.96% | -14.63% | -9.25% | -12.56% | 0.86% | 2.19% | 10.77% | 11.61% | -16.8% | 10.08% | 14.2% | 17.42% | 13.07% | 15.33% | 3.04% | -16.19% | -10.54% | 10.21% | 6% | 9.73% | 10.55% | 12.11% |
| EBITDA | 4.74B | 5.05B | 4.36B | 3.81B | 3.2B | 2.72B | 3.64B | 3.94B | 3.71B | 3.32B | 3.28B | 3.75B | 4.07B | 4.83B | 4.79B | 4.75B | 4.33B | 3.87B | 4.49B | 4.09B | 3.61B | 3.12B | 2.82B | 2.5B | 2.45B | 2.98B | 3.22B | 2.94B | 2.74B | 2.49B | 2.26B |
| EBITDA Margin % | 25.88% | 28.03% | 24.9% | 25.12% | 23.17% | 21.04% | 21.67% | 21.46% | 21.31% | 21.78% | 22.6% | 23.09% | 22.96% | 19.56% | 19.64% | 19.63% | 20.56% | 19.26% | 18.08% | 18.48% | 18.31% | 18.04% | 18.07% | 17.89% | 17.79% | 19.48% | 20.71% | 20.62% | 20.36% | 20.28% | 20.25% |
| EBITDA Growth % | -1.98% | 15.96% | 14.3% | 19.14% | 17.53% | -25.21% | -7.71% | 6.25% | 11.61% | 1.28% | -12.53% | -7.86% | -15.61% | 0.63% | 0.86% | 9.92% | 11.73% | -13.71% | 9.71% | 13.17% | 15.73% | 10.67% | 12.98% | 2.08% | -17.97% | -7.37% | 9.39% | 7.51% | 9.77% | 10.46% | 12.41% |
| D&A (Non-Cash Add-back) | 1.11B | 1.52B | 1.69B | 1.05B | 842M | 762M | 854M | 822M | 758M | 636M | 568M | 573M | 569M | 819M | 823M | 867M | 816M | 727M | 707M | 656M | 607M | 562M | 557M | 534M | 541M | 709M | 678.5M | 637.5M | 562.5M | 511.6M | 464.6M |
| EBIT | 3.63B | 3.32B | 2.34B | 3.16B | 2.66B | 1.93B | 2.51B | 3.06B | 2.87B | 2.54B | 2.53B | 4B | 3.4B | 3.43B | 3.36B | 3.88B | 3.14B | 2.67B | 3.83B | 3.43B | 3.01B | 2.56B | 2.26B | 1.96B | 1.91B | 2.27B | 2.54B | 2.31B | 2.17B | 1.98B | 1.79B |
| Net Interest Income | -361M | -237M | -89M | 7M | -194M | -154M | -156M | -174M | -159M | -165M | -188M | -175M | -194M | -218M | -224M | -223M | -261M | -220M | -188M | -228M | -207M | -209M | -210M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 202M | 150M | 234M | 268M | 34M | 12M | 19M | 27M | 43M | 36M | 27M | 23M | 24M | 16M | 17M | 23M | 19M | 24M | 56M | 228M | 18M | 34M | 24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 563M | 387M | 323M | 261M | 228M | 166M | 175M | 201M | 202M | 201M | 215M | 198M | 218M | 234M | 241M | 246M | 280M | 244M | 244M | 456M | 225M | 243M | 234M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -533M | -598M | -646M | 144M | 76M | -197M | -449M | -261M | -285M | -353M | -398M | 628M | -312M | -810M | -857M | -256M | -630M | -694M | -188M | -340M | -333M | -411M | -412M | -549M | -315M | -659M | -362.6M | -284.6M | -251.4M | -198.5M | -183.9M |
| Pretax Income | 3.1B | 2.93B | 2.02B | 2.9B | 2.43B | 1.76B | 2.33B | 2.86B | 2.67B | 2.33B | 2.32B | 3.81B | 3.19B | 3.2B | 3.12B | 3.63B | 2.88B | 2.45B | 3.59B | 3.09B | 2.67B | 2.15B | 1.85B | 1.41B | 1.59B | 1.61B | 2.18B | 2.02B | 1.92B | 1.78B | 1.61B |
| Pretax Margin % | 16.91% | 16.29% | 11.55% | 19.14% | 17.62% | 13.63% | 13.91% | 15.56% | 15.32% | 15.3% | 15.95% | 23.43% | 17.99% | 12.96% | 12.76% | 14.99% | 13.68% | 12.19% | 14.48% | 13.98% | 13.55% | 12.42% | 11.86% | 10.13% | 11.57% | 10.54% | 14.01% | 14.16% | 14.3% | 14.5% | 14.43% |
| Income Tax | 658M | 696M | 415M | 642M | 549M | 346M | 345M | 531M | 443M | 660M | 697M | 1.27B | 953M | 1.13B | 1.09B | 1.13B | 848M | 688M | 1.14B | 964M | 834M | 727M | 595M | 401M | 514M | 565M | 755.9M | 707.3M | 694.9M | 661.7M | 590.5M |
| Effective Tax Rate % | 21.24% | 23.72% | 20.54% | 22.12% | 22.57% | 19.64% | 14.78% | 18.57% | 16.61% | 28.27% | 30.09% | 33.28% | 29.87% | 35.36% | 35.02% | 31.04% | 29.45% | 28.08% | 31.66% | 31.17% | 31.2% | 33.83% | 32.13% | 28.36% | 32.33% | 35.01% | 34.7% | 35% | 36.13% | 37.1% | 36.7% |
| Net Income | 2.44B | 2.29B | 1.97B | 13.22B | 3.23B | 2.3B | 1.97B | 2.31B | 2.2B | 1.52B | 1.64B | 2.71B | 2.15B | 2B | 1.97B | 2.48B | 2.16B | 1.72B | 2.41B | 2.14B | 1.84B | 1.42B | 1.26B | 1.09B | 122M | 1.03B | 1.42B | 1.31B | 1.23B | 1.12B | 1.02B |
| Net Margin % | 13.35% | 12.73% | 11.25% | 87.17% | 23.41% | 17.81% | 11.71% | 12.55% | 12.66% | 9.95% | 11.26% | 16.68% | 12.11% | 8.12% | 8.06% | 10.24% | 10.29% | 8.58% | 9.72% | 9.65% | 9.35% | 8.22% | 8.05% | 7.8% | 0.89% | 6.74% | 9.15% | 9.21% | 9.14% | 9.12% | 9.13% |
| Net Income Growth % | 2.09% | 16.51% | -85.11% | 309.13% | 40.3% | 17.2% | -14.79% | 4.68% | 45.13% | -7.16% | -39.67% | 26.22% | 7.14% | 1.83% | -20.65% | 14.6% | 25.52% | -28.52% | 12.92% | 15.77% | 29.75% | 13.13% | 15.43% | 792.62% | -88.18% | -27.45% | 8.28% | 6.92% | 9.51% | 10.15% | 12.21% |
| Net Income (Continuing) | 2.44B | 2.24B | 1.6B | 2.26B | 1.88B | 1.42B | 1.99B | 2.33B | 2.22B | 1.68B | 1.62B | 2.54B | 2.24B | 2.07B | 2.02B | 2.5B | 2.03B | 1.76B | 2.45B | 2.13B | 1.84B | 1.42B | 1.26B | 1.01B | 1.08B | 1.05B | 1.42B | 1.31B | 1.23B | 1.12B | 1.02B |
| Discontinued Operations | 2M | 8M | 350M | 10.94B | 1.35B | 911M | 0 | 0 | 0 | -125M | 45M | 193M | -54M | 0 | 0 | 26M | 186M | 9M | -42M | 7M | 6M | 0 | 0 | 76M | -16M | -17M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 16M | 16M | 5.87B | 5.91B | 5.95B | 40M | 42M | 40M | 43M | 52M | 50M | 47M | 48M | 133M | 147M | 152M | 160M | 0 | 188M | 191M | 176M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.34 | 4.04 | 3.43 | 3.73 | 4.60 | 3.83 | 3.24 | 3.72 | 3.47 | 2.36 | 2.53 | 4.01 | 3.05 | 2.77 | 2.68 | 3.29 | 2.86 | 2.27 | 3.06 | 2.66 | 2.24 | 1.70 | 1.49 | 1.30 | 0.14 | 1.20 | 1.65 | 1.50 | 1.39 | 1.26 | 1.14 |
| EPS Growth % | 3.48% | 17.83% | -8.02% | -19.02% | 20.29% | 18.13% | -12.82% | 7.16% | 46.98% | -6.67% | -36.9% | 31.37% | 10% | 3.48% | -18.6% | 15.14% | 25.93% | -25.82% | 15.04% | 18.75% | 31.97% | 13.91% | 14.62% | 828.57% | -88.33% | -27.27% | 10% | 7.91% | 10.32% | 10.53% | 12.87% |
| EPS (Basic) | - | 4.07 | 3.44 | 3.75 | 4.63 | 3.85 | 3.26 | 3.74 | 3.49 | 2.36 | 2.54 | 4.02 | 3.07 | 2.79 | 2.69 | 3.31 | 2.88 | 2.29 | 3.09 | 2.69 | 2.26 | 1.72 | 1.50 | 1.30 | 0.14 | 1.22 | 1.67 | 1.52 | 1.40 | 1.26 | 1.14 |
| Diluted Shares Outstanding | 563M | 566.7M | 574M | 577.3M | 592.9M | 601.8M | 606.6M | 620.6M | 635.3M | 643.4M | 646.8M | 676.5M | 704.1M | 722.9M | 734.6M | 753.5M | 757M | 758.7M | 789.4M | 803.9M | 823.66M | 836.47M | 843.62M | 840.93M | 841.38M | 859M | 862.8M | 875.73M | 887.08M | 891.51M | 897.36M |
| Basic Shares Outstanding | 560.8M | 562.8M | 571.3M | 574.2M | 592.9M | 598.1M | 602.9M | 616.2M | 632M | 642.1M | 644M | 673.3M | 700.2M | 717.7M | 730.6M | 748.5M | 750.7M | 753.7M | 780.3M | 793.8M | 816.37M | 829.15M | 838M | 837.69M | 841.38M | 850.8M | 854.8M | 867.06M | 877.57M | 890.4M | 897.36M |
| Dividend Payout Ratio | - | 51.98% | 61.03% | 9.06% | 37.85% | 52.54% | 61.53% | 52.43% | 55.79% | 81.62% | 75.05% | 46.83% | 56.36% | 58.93% | 59.5% | 41.9% | 46.63% | 57.89% | 38.97% | 39.19% | 39.57% | 48.8% | 53.7% | 60.7% | 534.43% | 63.37% | 43.11% | 43.12% | 42.41% | 42.85% | 43.11% |
Integration and cyclical exposure
As indicated by recent quarterly filings, Emerson's revenue growth has decelerated from a peak of 22.1% in 2024Q1 to a more modest 2.9% in 2026Q2, reflecting the company's transition away from legacy cyclical segments toward a more focused, software-integrated industrial automation model.
The sharp decline in year-over-year growth rates suggests that the initial tailwinds from post-divestiture portfolio adjustments are fading. Investors should monitor whether the current low-single-digit growth trajectory represents a sustainable baseline or if the company is struggling to capture sufficient market share in its new, higher-margin software-centric verticals.
Based on the provided financial data, Emerson has successfully stabilized its gross margins above the 50% threshold, reaching 53.1% in 2026Q2, which appears to validate the strategic pivot toward higher-value automation instrumentation and away from lower-margin, commodity-exposed hardware businesses.
The consistent gross margin performance suggests that the company possesses significant pricing power within its core process-control niches. This structural improvement in profitability warrants further investigation into whether the integration of recent acquisitions will continue to drive operating margin expansion toward the 20% level.
According to the reported income statements, operating margins have hovered near 19% despite significant revenue fluctuations, suggesting that Emerson's fixed-cost structure remains relatively rigid even as the company attempts to scale its software-defined automation offerings through recent strategic acquisitions.
The lack of meaningful operating margin expansion during periods of revenue growth indicates that SG&A expenses are scaling in lockstep with top-line gains. This may imply that the company is currently in a heavy investment phase, potentially masking the true profitability of its newly acquired software assets.
As reported in financial statements, net income has exhibited significant volatility, with quarterly figures swinging from $142 million in 2024Q1 to nearly $1 billion in 2024Q4, largely driven by non-operating items and the ongoing structural transformation of the company's business portfolio.
The erratic nature of net income makes it difficult for investors to gauge the true earnings power of the core business. Analysts should focus on adjusted metrics that strip out divestiture-related noise to determine if the underlying operational efficiency is truly improving as management intends.
Based on the provided figures, the persistent reliance on large-scale project revenue leaves Emerson vulnerable to capital expenditure cycles, while the high stock-based compensation expense of $58 million in 2026Q2 raises questions about the true cost of talent in its software-focused growth strategy.
Short-sellers may focus on the potential for 'integration indigestion' following the National Instruments acquisition, which could lead to margin compression if cross-selling synergies fail to materialize. Furthermore, the company's sensitivity to global energy infrastructure spending remains a significant risk factor that could derail current growth projections.
Quick answers to the most common questions about buying EMR stock.
For fiscal year 2025, Emerson Electric Co. (EMR) reported total revenue of $18.02B. This represents a 61.6% increase compared to $11.15B in 1996.
Emerson Electric Co. (EMR) is profitable, generating $2.29B in net income for the fiscal year ending 2025 with a net profit margin of 12.7%.
Emerson Electric Co. (EMR) reported an operating income of $3.53B, resulting in an operating profit margin of 19.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Emerson Electric Co. (EMR) generated $9.52B in gross profit for the year, representing a gross profit margin of 52.8%. This demonstrates the company's core pricing power and production efficiency.