Revenue growth accelerated to 7.0% in Q3 2026 with gross margin expanding to 54.5% and operating margin reaching 20.5%, reflecting strong pricing power and operating leverage.
Emerson Electric Co. (EMR) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 18.64B | 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 % | 4.82% | 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 | 8.73B | 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 | 9.91B | 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 % | 53.16% | 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 | 6.16B | 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 | 5.23B | 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 | 3.75B | 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 % | 20.11% | 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 | 5.06B | 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 % | 27.15% | 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 % | 3.16% | 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) | 1.31B | 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 | 3.83B | 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 | -351M | -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 | 553M | 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 | -468M | -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 | 3.28B | 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 % | 17.6% | 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 | 702M | 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 % | 21.4% | 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 | 2.58B | 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 % | 13.83% | 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 % | -2.83% | 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) | 2.58B | 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 | 1000K | 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 | 15M | 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) | 4.59 | 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 % | -1.76% | 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 | 561.1M | 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 | 558.8M | 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% |
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.
Key Metrics
Top Statement Risk
Integration and geopolitical exposure
Metrics are mathematically derived from official filings.
Revenue Momentum Building on Orders
Emerson's revenue growth accelerated to 7.0% in Q3 2026, up from 2.9% in Q2, driven by broad-based demand and strong order growth of 7%, per recent earnings reports.
The sequential acceleration in revenue growth from 2.9% to 7.0% suggests improving end-market conditions, particularly in North America and Asia. Underlying orders up 7%, led by Software & Systems, indicate that this momentum may be durable, as orders typically lead revenue by several quarters. The shift toward higher-margin software and services likely supports not only growth but also the quality of that growth.
Gross Margin Expansion Reflects Mix Shift
Gross margin improved to 54.5% in Q3 2026, up 190 basis points year-over-year, as per financial statements, indicating a favorable product mix and pricing power.
The steady climb in gross margin from 51.3% in Q4 2024 to 54.5% in Q3 2026 suggests that Emerson's pivot toward software and high-value automation solutions is enhancing its pricing power. This margin expansion is occurring despite potential input cost pressures, implying that the company's proprietary technology and installed base allow it to pass on costs. The gap between Emerson's gross margin and peers like Honeywell (36.9%) and Rockwell (48.1%) underscores its competitive advantage in process automation.
Operating Leverage Driving Margin Upside
Operating margin reached 20.5% in Q3 2026, up from 18.2% a year earlier, as SG&A grew slower than revenue, according to reported figures.
Operating income grew 10.1% year-over-year in Q3 2026, outpacing revenue growth of 7.0%, demonstrating positive operating leverage. SG&A expenses remained flat at $1.3B for the quarter, indicating that Emerson is scaling its revenue without proportionally increasing overhead. This efficiency suggests that the company's investments in software and digital solutions are yielding higher incremental margins, a trend that could continue if order strength persists.
Earnings Quality Solid but Watch Tax and SBC
Net income surged to $718M in Q3 2026, with EPS up 23.1% year-over-year, though stock-based compensation of $68M and a low tax rate warrant scrutiny, per financial data.
The 23.1% EPS growth in Q3 2026 is robust, but the effective tax rate appears lower than typical, potentially inflating net income. SBC of $68M, while modest relative to net income, still represents a real cost to shareholders. The quality of earnings is supported by broad-based operational strength, but investors should monitor tax rate normalization and SBC trends as potential headwinds to future EPS growth.
Cost Discipline Amid Portfolio Transformation
COGS as a percentage of revenue fell to 45.5% in Q3 2026, down from 47.2% in Q4 2024, while SG&A remained flat, indicating disciplined cost management, as per income statements.
The reduction in COGS ratio suggests that Emerson is benefiting from cost synergies from recent acquisitions and a shift toward higher-margin software. SG&A has been held constant at $1.3B for the last five quarters, implying that management is controlling overhead while integrating National Instruments. This cost discipline is critical as the company navigates its transformation, but the lack of R&D disclosure (reported as $0) is a data gap that limits full cost structure analysis.
Q3 2026 Marks Operational Inflection
Q3 2026 stands out as an inflection point with revenue growth of 7.0%, operating margin of 20.5%, and EPS of $1.28, all exceeding recent trends, based on reported quarterly data.
The combination of accelerating revenue growth, record operating margin, and strong EPS growth in Q3 2026 suggests that Emerson's strategic pivot to pure-play automation is gaining traction. The raised forward guidance to $1.85 EPS indicates management's confidence in sustained momentum. This inflection appears driven by robust order growth and successful integration of software assets, which could lead to a re-rating if the market recognizes the improved earnings quality.
What Could Invalidate the Base Case
Despite strong Q3 2026 results, the 35.3% EPS decline in Q4 2025 and reliance on tax benefits highlight earnings volatility, while integration risks from the NI acquisition could pressure margins, per reported data.
The sharp EPS drop in Q4 2025, from $1.73 to $1.12, underscores the potential for earnings volatility, possibly due to one-time items or operational disruptions. The low effective tax rate in recent quarters may not be sustainable, and its normalization could compress net income. Additionally, the integration of National Instruments carries execution risk; if cross-selling synergies fail to materialize, the premium paid could weigh on returns and margins, challenging the current growth narrative.