Emerson Electric Co. (EMR) Earnings Call Transcripts

Emerson Electric Co.'s Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal year 2026, Emerson Electric Co. reported revenue of $4.2 billion and adjusted earnings per share (EPS) of $1.54, reflecting a 4% year-over-year increase. The company faced headwinds from the ongoing conflict in the Middle East, which impacted underlying sales growth by approximately 1 point. Management has updated full-year guidance, now expecting sales growth of 4.5% and adjusted EPS in the range of $6.45 to $6.55, raising the midpoint of their EPS guidance while adjusting overall sales growth expectations down to 3%.

Reported metrics

Guidance from management

Management updated full-year sales growth expectations to approximately 3% due to the Middle East conflict but raised adjusted EPS guidance to $6.45 to $6.55, reflecting confidence in second-half performance based on order momentum.

What management said

Yes, Scott, this is Lal. Yes, I think you hit the nail on the head. Our exposure to the chemical industry in China, an industry that continues to be overcapacitized and very weak in terms of spend. And we've been adversely impacted now for a few quarters and that continued through the second quarter of the year, which then led us to assess the China for the year more in the negative mid-single digits versus the low s...

That's what we've assessed to date. That's based on pace of quotations and orders that we've received already. Now obviously, that's based on the 47 sites that have been impacted across the region. That number could change over time. And that's also based on what we assess a restart procedures will entail for MRO activity. So that's all we have today, Andrew.

What analysts pressed on

Analysts expressed concerns regarding the impact of the Middle East conflict on future revenues and the significant slowdown in China, particularly in the chemical sector. There were questions about the sustainability of order growth and potential risks in the broader economic environment due to geopolitical tensions.

Main topics on the call

• Middle East Conflict Impact — The ongoing conflict in the Middle East adversely affected Emerson's operations, causing a 1-point impact on underlying sales growth. Management stated, "We expect to have additional opportunities as customers continue t...
• Strong Demand in Growth Verticals — Emerson reported robust demand in its growth verticals, particularly in power and life sciences, with underlying orders up 5%. The Ovation business saw a 41% increase in orders, driven by strong secular demand for power.
• Adjusted EPS Guidance Raised — Management raised the bottom and midpoint of their adjusted EPS guidance to $6.45 to $6.55, stating, "We are confident in our second half plans for 2026 based on the orders momentum we are seeing."
• Software & Systems Performance — The Software & Systems segment faced a 4.5% sales headwind from a software contract renewal dynamic, resulting in only 1% underlying sales growth. However, management expects this segment to grow approximately 8% in Q3.

Read the full Emerson Electric Co. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 45 Emerson Electric Co. earnings call transcripts on record, spanning February 4, 2020 to May 5, 2026. Based on this history, Emerson Electric Co. reports quarterly. The most recent call on file is dated May 5, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

EMR

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Electrical Equipment

Calls on record

45

First call

February 4, 2020

Most recent

May 5, 2026

Reporting cadence

quarterly