Emerson Electric (EMR) official guidance

We still expect ACV growth of 10%+ in 2026.

We still expect adjusted segment EBITDA margin of 28%.

We expect adjusted segment EBITDA margin of 28.5% and adjusted EPS of approximately $1.85.

We are guiding 2026 adjusted EPS of approximately $6.55 and free cash flow of approximately $3.6 billion.

We expect adjusted segment EBITDA margin of 28.5% and adjusted EPS of approximately $1.85.

We are guiding 2026 adjusted EPS of approximately $6.55 and free cash flow of approximately $3.6 billion.

We are modeling an approximately $100 million full year 2026 impact from the conflict in the Middle East as the Strait of Hormuz remains effectively closed.

We are raising full year growth guidance for Test & Measurement, now 14%, and Control Systems & Software, now 3.5%, including approximately three points of headwind from software renewals.

Intelligent Devices is projected to grow 3% in Q4 and 2% for the full year.

Intelligent Devices is projected to grow 3% in Q4 and 2% for the full year.

Safety & Productivity is expected to grow 1% in Q4 and 2% for the full year.

Safety & Productivity is expected to grow 1% in Q4 and 2% for the full year.

We are increasing our full year expectations for Software & Systems to up 6% based on the strength of our growth verticals in this business and strength in the U.S.

We expect Software & Systems to be up approximately 10% in Q4, with both Test & Measurement and Control Systems & Software expected to grow 10%.

We are raising full year growth guidance for Test & Measurement, now 14%, and Control Systems & Software, now 3.5%, including approximately three points of headwind from software renewals.

For the full year, we expect 5% GAAP sales growth and 3.5% underlying sales growth.

For the full year, we expect 5% GAAP sales growth and 3.5% underlying sales growth.

We expect China to continue to improve into low single-digit type growth levels as we plan for 2027.

There are no changes to our planned return of approximately $2.2 billion to shareholders through $1.2 billion in dividends and $1 billion of share repurchase.

we remain committed to returning approximately $2.2 billion of capital to shareholders this fiscal year.

There are no changes to our planned return of approximately $2.2 billion to shareholders through $1.2 billion in dividends and $1 billion of share repurchase.

| Acquisition/divestiture fees and related costs | ~$0.01 | ~$0.09 |

| Acquisition/divestiture fees and related costs | ~$0.01 | ~$0.09 |

| Amortization of intangibles | ~$0.34 | ~$1.39 |

| Amortization of intangibles | ~$0.34 | ~$1.39 |

| Discrete taxes | ~$0.02 | ~$0.05 |

| Discrete taxes | ~$0.02 | ~$0.05 |

| Earnings Per Share | ~$1.45 | ~$4.89 |

| Earnings Per Share | ~$1.45 | ~$4.89 |

| IEEPA tariff refunds | - | ~($0.11) |

| Operating Cash Flow | | ~$4.1B |

| Underlying Sales Growth | ~5% | ~3.5% |

| Restructuring and related costs | ~$0.03 | ~$0.24 |

| Restructuring and related costs | ~$0.03 | ~$0.24 |

| Net Sales Growth | ~5% | ~5% |

We expect adjusted segment EBITDA margin of approximately 28% and adjusted EPS of $1.65-$1.70.

We expect adjusted segment EBITDA margin of approximately 28% and adjusted EPS of $1.65-$1.70.

We are on track for full-year cash flow growth of approximately 10% at greater than 18% margin.

We are on track for full-year cash flow growth of approximately 10% at greater than 18% margin.

Moving to the third quarter, sales growth is expected to be approximately 5.5%, with underlying sales growth of approximately 5%.

We expect the strength in the U.S. to continue, and we now expect the U.S. to grow high single digits for the year. This incremental growth is offset by a slower than expected China, which we now expect to be down mid-single digits for the year.

The Control Systems & Software segment is expected to grow mid-single digits in Q3 and low single digits in the full year.

The Control Systems & Software segment is expected to grow mid-single digits in Q3 and low single digits in the full year.

Intelligent Devices is projected to grow 4% in Q3, and we are lowering our full year expectations to approximately 2%, driven by the conflict in the Middle East.

Intelligent Devices is projected to grow 4% in Q3, and we are lowering our full year expectations to approximately 2%, driven by the conflict in the Middle East.

Safety & Productivity is expected to grow 1% in Q3 and 2% for the full year.

Safety & Productivity is expected to grow 1% in Q3 and 2% for the full year.

We expect Software & Systems to be up approximately 8% in Q3 and are increasing our full year expectations to up 5% based on the strength of our growth verticals in this business and strength in the U.S.

We expect Software & Systems to be up approximately 8% in Q3 and are increasing our full year expectations to up 5% based on the strength of our growth verticals in this business and strength in the U.S.

Test & Measurement is planned to grow mid-teens in Q3 and low teens in the full year, up from our prior expectations of high single-digit growth in 2026.

Test & Measurement is planned to grow mid-teens in Q3 and low teens in the full year, up from our prior expectations of high single-digit growth in 2026.

We expect the strength in the U.S. to continue, and we now expect the U.S. to grow high single digits for the year.

Moving to the third quarter, sales growth is expected to be approximately 5.5%, with underlying sales growth of approximately 5%.

| Acquisition/divestiture fees and related costs | ~$0.02 | ~$0.06 |

| Amortization of intangibles | ~$0.34 | ~$1.38 |

| Discrete taxes | ~$0.01 | ~$0.04 |

| Earnings Per Share | $1.22 - $1.27 | $4.79 - $4.89 |

| Restructuring and related costs | ~$0.06 | ~$0.18 |

| Net Sales Growth | ~5.5% | ~4.5% |

We expect Adjusted Segment EBITDA margin of approximately 27% and Adjusted EPS of $1.50-$1.55.

We expect Adjusted Segment EBITDA margin of approximately 27% and Adjusted EPS of $1.50-$1.55.

Turning to the second quarter, sales growth is expected to be 3%-4%, with underlying sales growth of 1%-2%.

2% approximately in the second half or about 2.5% for the full year.

2% approximately in the second half or about 2.5% for the full year.

We expect Software and Systems to be flat in Q2 and up 4% for the full year.

Test and Measurement is planned to have high single-digit growth in both Q2 and the full year, while the Control Systems and Software segment is expected to be down low single digits in Q2 due to a $65 million headwind from the timing of software contract renewals.

We're seeing continued flat activity in Europe for the year.

Intelligent devices is projected to grow 2%-3% in Q2 and 4% for the full year, with stable MRO led by strength in North America.

Now, we don't expect the 18% to continue through the quarter, but I think we're very confident that high single-digit growth in North America is something we would bake into the plan.

Orders in our Ovation business were up 74%, driven by large project wins, including behind-the-meter data centers and fleet modernizations for major utility customers, and we expect growth in the mid-teens for the year.

Safety and Productivity is expected to grow 1%-2% in Q2 and 2%-3% for the full year.

We are reiterating our guidance of 5.5% sales growth, 4% underlying sales growth, and an adjusted segment EBITDA margin of approximately 28%.

Turning to the second quarter, sales growth is expected to be 3%-4%, with underlying sales growth of 1%-2%.

| Acquisition/divestiture fees and related costs | ~$0.02 | ~$0.06 |

| Amortization of intangibles | ~$0.35 | ~$1.38 |

| Capital expenditures | (83) | | (97) | | ~(0.45) |

| Discrete taxes | ~$0.01 | ~$0.04 |

| Earnings Per Share | $1.06 - $1.11 | $4.78 - $4.93 |

| Restructuring and related costs | ~$0.06 | ~$0.14 |

| Net Sales Growth | 3% - 4% | ~5.5% |

The underlying health of our software businesses remains robust, with ACV expected to grow 10% plus in 2026, but having fewer contracts up for renewal adversely affects GAAP revenues.

Now that the transformation is complete in 2026, we plan to raise our full year dividend per share $0.11, or approximately 5%, which is a significant increase compared to prior years.

Adjusted segment EBITDA margin is guided to be approximately 27% and we expect to deliver adjusted earnings per share of approximately $1.40 in the first quarter.

Tax rate is modeled at 21.5%.

Adjusted segment EBITDA margin is guided to be approximately 27% and we expect to deliver adjusted earnings per share of approximately $1.40 in the first quarter.

We ended 2025 with a net debt to adjusted EBITDA ratio of 2.3 times and expect to end 2026 at approximately 2 times.

Turning to the first quarter, sales growth is expected to be 4% with underlying sales growth of 2%.

The Americas are projected to be up mid single digits driven by sustained strength in our growth verticals and MRO.

Is forecasted to be up low single digits led by robust growth in India and momentum in Southeast Asia and Japan offsetting a flat China.

Our testing measurement segment is planned to have high single digit growth in both the first half and full year, while the control systems and software segment is expected to be down low single digits in the first half due to a $110 million headwind from a lower value of software contracts up for renewal in 2026.

The Intelligent Devices Business Group is projected to grow 3% in the first half and 4% for the full year, with sustained strength in MRO across core verticals.

The Intelligent Devices Business Group is projected to grow 3% in the first half and 4% for the full year, with sustained strength in MRO across core verticals.

The Middle East and Africa is planned to grow high single digits supported by a healthy capital cycle and significant greenfield investments.

Our testing measurement segment is planned to have high single digit growth in both the first half and full year, while the control systems and software segment is expected to be down low single digits in the first half due to a $110 million headwind from a lower value of software contracts up for renewal in 2026.

Overall, Emerson expects to grow approximately 2% in the first half and 4% for the full year.

Turning to the first quarter, sales growth is expected to be 4% with underlying sales growth of 2%.

Our testing measurement segment is planned to have high single digit growth in both the first half and full year, while the control systems and software segment is expected to be down low single digits in the first half due to a $110 million headwind from a lower value of software contracts up for renewal in 2026.

| Acquisition/divestiture fees and related costs | ~$0.02 | ~$0.05 |

| Amortization of intangibles | ~$0.35 | ~$1.42 |

| Earnings Per Share | ~$0.98 | $4.73 - $4.93 |