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Emerson Electric Co. EMR

NYSEMachineryFinancials to Jun 30, 2026 · Updated Oct 8, 2026

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EMR financials
Moat score
79
ROIC
9.2%
P/E
34.5
EV/EBIT
27.5
FCF yield
3.9%
Dividend yield
1.4%
Market cap
$88.8B

Moat ranks

Score rankTied #157 of 396
Durabilitydurable
Market structureCompetitive
Pricing powerstrong

Balance sheet

6/30/26
$BSep 30Jun 30
Cash1.52.2
Securities0.00.0
Debt13.113.1
Net cash-11.6-10.9
Equity20.320.4
Leverage
Debt / EBITDA
2.56×
Debt / equity
0.64×
Leases (6/30/26)
$689M
Capital
Diluted shares
561M
Book value / share
$36.32
Price / book
4.4×
Net cash / share
−$19.48
Market cap
$88.8B
Enterprise value
$99.7B

Per-share record

Fiscal years and TTM
Scale
$0$10$20$30$40'16'17'18'19'20'21'22'23'2431.79'2533.21TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q3 '26
IndicatorLatestVs year agoLast 8 quarters
Revenue growth7.0%+3.1 pts
Operating margin20.5%+2.3 pts
FCF margin27.1%+5.9 pts
Capex / revenue2.1%+0.1 pts
Contract backlog~$9.6B+8%
Final Control underlying sales growth+3%–
Sensors underlying sales growth+7%–
Control Systems & Software underlying sales growth+7%–
Test & Measurement underlying sales growth+23%–

Margins and growth from reported quarters; company KPIs as reported in results releases.

About EMR

Emerson Electric reports Final Control, Sensors, Safety & Productivity, Control Systems & Software, and Test & Measurement. Its strongest moats arise where products are embedded in plant operations: Final Control has an installed base that pulls through genuine parts and lifecycle service; sensors require integration, calibration and validation; and DeltaV and related control software carry high re-engineering, retraining and operational switching costs.

Revenue mix
Final Control 32.4%Control Systems & Software 24.2%Sensors 22.6%Safety & Productivity 11.6%Test & Measurement 9.2%
  • Installed Base Consumables

    Large installed base of valves/regulators creates recurring OEM spare-parts and maintenance demand (uptime-critical).

  • Service Field Network

    Field service capabilities (certified technicians, diagnostics, parts availability) reduce downtime and increase customer retention.

  • Design In Qualification

    Instrumentation is integrated into plant control/asset-management workflows; qualification and calibration cycles raise switching friction.

  • Data Workflow Lockin

    Control systems become embedded in plant operations; changing platforms requires re-engineering, retraining, and operational risk.

Timeline
  1. Oct 6, 2026

    Logtek AS selected AspenTech Geolog for subsurface data and analysis workflows, adding a software customer in Norwegian upstream exploration. Revenue and contract terms were not disclosed.

  2. Oct 5, 2026

    NI issued required NI-PAL update guidance: Windows may block affected drivers from November 10, risking interrupted test workflows without a patch.

  3. Oct 5, 2026

    Schneider agreed to buy PTC for about $22.6 billion, expanding its planned industrial software offer alongside AVEVA. Closing and approvals remain pending, creating future competition for new automation projects.

  4. Sep 21, 2026

    Emerson announced a Qatar service center with local spares, control-system staging and training planned from December 2026 and a flow calibration lab in early 2027, increasing future support capacity in the region.

  5. Sep 15, 2026

    Technip Energies selected DeltaV control and safety systems plus AMS device management for the SkyNRG sustainable aviation fuel plant, adding a greenfield installed platform. The plant targets operation in 2028; contract value was not disclosed.

Ownership

To 10/8/26
CEO
Lal Karsanbhai
Since 2021 · 5 yrs
Professional CEOSingle share class
Insider trades24
Planned sales7

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Financial record

Fiscal year2016201720182019202020212022202320242025TTMTrendChange 2016–25
Per share ($)
Revenue22.4523.7227.4029.6027.6721.4923.1526.2730.4731.7933.21+3.9%/yr
Cash flow3.864.184.554.845.084.083.434.695.786.496.98+5.9%/yr
Earnings2.462.553.473.723.242.353.163.962.824.034.59+5.7%/yr
Free cash flow3.173.443.583.894.203.412.934.075.055.736.17+6.8%/yr
Capex0.690.740.970.960.890.670.500.630.730.760.81+1.1%/yr
Dividends1.901.931.931.951.992.012.052.082.092.102.20+1.2%/yr
Book value11.7013.5514.0813.2713.8616.4217.3835.8437.6935.7936.32+13.2%/yr
Diluted shares (M)647643635621607602596577574567561-1.5%/yr
Totals ($B)
Revenue14.515.317.418.416.812.913.815.217.518.018.6+2.4%/yr
Operating income2.52.52.83.02.51.92.22.72.33.23.6+2.7%/yr
Net income1.61.62.22.32.01.41.92.31.62.32.6+4.1%/yr
Free cash flow2.12.22.32.42.52.11.72.32.93.23.5+5.2%/yr
Buybacks0.60.41.01.30.90.50.52.00.41.20.9+7.7%/yr
Dividends1.21.21.21.21.21.21.21.21.21.21.2-0.3%/yr
Net cash-3.5-1.6-3.7-4.2-4.2-4.3-8.6-0.1-4.1-11.6-10.9−$8.1B
Margins & returns (%)
Gross margin43.142.142.742.541.844.345.749.050.852.853.2+9.7 pts
Operating margin17.216.416.216.514.814.815.718.013.217.619.5+0.4 pts
Net margin10.910.812.712.611.710.913.715.19.212.713.8+1.7 pts
FCF margin14.114.513.113.115.215.912.715.516.618.018.6+3.9 pts
ROIC18.019.217.819.315.710.79.110.47.17.99.2-10.1 pts
Return on equity21.018.824.628.023.414.318.211.07.511.312.6-9.7 pts
R&D % of revenue2.22.22.52.52.62.72.83.44.54.3–+2.1 pts
Stock pay % of revenue1.00.71.20.70.71.50.91.61.51.51.3+0.5 pts
Capex % of revenue3.13.13.53.23.23.12.22.42.42.42.4-0.7 pts

Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.

TTM = four quarters to Jun 30, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 20.7% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score79
Strength
Confidence
Structure
Competitive
Durability
durable
Trajectory
stable
Pricing power
strong
Segments
  • Final Control32.4%
    2 claims
  • Sensors22.6%
    1 claim
  • Safety & Productivity11.6%
    Not scored: evidence insufficient
  • Control Systems & Software24.2%
    2 claims
  • Test & Measurement9.2%
    2 claims

Moat claims

Applies to
Final Control
Confidence
Durability
durable
Trajectory
stableas of Oct 8, 2026
Why it holds

Large installed base of valves/regulators creates recurring OEM spare-parts and maintenance demand (uptime-critical).

Why stable

Final Control underlying sales rose 3% in Q3, supporting installed-equipment demand. Genuine spares and lifecycle support remain important, but undisclosed aftermarket retention and attachment rates prevent a conclusion that protection is growing.

Indicators
  • Contract backlog~$9.6B+8%
  • Final Control underlying sales growth+3%
  • Maintenance, repair and operations share65.0%
Risks
  • Third-party service shops and gray-market parts
  • Commoditization in standardized valve categories
  • Customer dual-sourcing on new projects

Profile change log

  1. Oct 8, 2026 · business change

    The U.S. Supreme Court ruled that IEEPA did not authorize tariffs. Emerson received $82 million of refunds in Q3, increasing reported operating profit; further refunds remain uncertain.

  2. Oct 8, 2026 · analyst revision

    Replaced the preliminary proxy with the definitive management source, added sourced customer awards and trajectory evidence, and kept all moat strengths, directions and segment evidence statuses unchanged.

  3. Oct 8, 2026 · business change

    Logtek AS selected AspenTech Geolog for subsurface data and analysis workflows, adding a software customer in Norwegian upstream exploration. Revenue and contract terms were not disclosed.

  4. Oct 8, 2026 · business change

    Technip Energies selected DeltaV control and safety systems plus AMS device management for the SkyNRG sustainable aviation fuel plant, adding a greenfield installed platform. The plant targets operation in 2028; contract value was not disclosed.

  5. Oct 8, 2026 · business change

    Equinor selected Emerson measurement equipment and lifecycle services under a frame agreement covering up to 13 years including options, extending a relationship of more than 40 years. Minimum purchases and exclusivity were not disclosed.

  6. Oct 8, 2026 · business change

    BP awarded Emerson automation for Shah Deniz compression, extending its existing DeltaV relationship into another offshore project. Emerson will supply control and safety systems; exact contract value was not disclosed.

  7. Oct 8, 2026 · analyst revision

    Linked portfolio software contract value to NI as well as control software, added prior-quarter segment demand, and distinguished new service capacity from evidence of stronger customer retention. Added pending rival consolidation to the investment debate.

  8. Oct 8, 2026 · analyst revision

    Replaced single-quarter segment weights with first-nine-month FY2026 revenue on the reorganized basis and removed profit shares that excluded corporate costs. Kept claim strengths and the unscored Safety & Productivity assessment unchanged.

  9. Oct 8, 2026 · business change

    Schneider agreed to buy PTC for about $22.6 billion, expanding its planned industrial software offer alongside AVEVA. Closing and approvals remain pending, creating future competition for new automation projects.

  10. Oct 8, 2026 · business change

    Emerson announced a Qatar service center with local spares, control-system staging and training planned from December 2026 and a flow calibration lab in early 2027, increasing future support capacity in the region.

  11. Oct 8, 2026 · analyst revision

    Safety & Productivity retains its empty claim list. Current product and competition disclosures show a branded professional tool business, but do not establish or rule out a durable barrier; its assessment remains unscored pending stronger evidence.

  12. Oct 8, 2026 · analyst revision

    Added dated trajectories, operating tests, management and an investment debate. Existing claim strengths and segment shares remain supported; current evidence does not prove widening protection. Broad Final Control markets are competitive, with stronger protection in critical-service niches.

  13. Oct 8, 2026 · business change

    NI issued required NI-PAL update guidance: Windows may block affected drivers from November 10, risking interrupted test workflows without a patch.

  14. Oct 8, 2026 · business change

    Rudy Sengupta became chief technology and AI officer, succeeding Peter Zornio and taking responsibility for the software and AI strategy.

  15. Oct 8, 2026 · business change

    Emerson acquired Glue, adding AI test-planning software to NI. Transaction terms and current revenue were not disclosed.

  16. Oct 8, 2026 · business change

    Emerson raised its FY2026 outlook after Q3 results exceeded expectations; the quarter also included an $82 million tariff refund.

  17. Oct 8, 2026 · business change

    Emerson bought the remaining AspenTech shares for about $7.2 billion, gaining full ownership of an already consolidated software business and increasing financing needs.

  18. Oct 8, 2026 · business change

    Emerson sold its remaining 40% Copeland equity interest, completing its climate-equipment ownership exit; the note sale also closed in August.

  19. Oct 8, 2026 · business change

    Emerson acquired NI, adding automated test hardware and software and substantial purchase-accounting charges.

  20. Oct 8, 2026 · business change

    Emerson sold a majority of Climate Technologies to Blackstone, removing a large business from continuing sales and profit.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianEMRITWROKAMETER

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Global industrial valves and actuators

As of Oct 8, 2026
CompetitiveMedium cyclicalityUSD 149B in 2035

Industrial control, isolation, safety and pressure-relief valves and their actuation, regulation and positioning components for process industries and infrastructure. Excludes industrial pumps, complete plant control software and separately sold field services.

StocksMoatGross m.Op. m.
EMR7953.2%19.5%
Industry median207040.3%17.4%
Sector median887637.0%17.5%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Plant maintenance and replacement support repeat valve and parts demand; critical process downtime makes local service valuable.
  • LNG, power generation, water treatment and industrial modernization have a strong effect on engineered project orders.
  • Emissions and safety standards create demand for qualified valve designs and monitoring. Requirements can protect incumbents but do not exclude all approved rivals.
  • Energy and labor costs support automation and digital diagnostics; replacement demand softens the capital-spending cycle.
Risks
  • Higher interest rates and weak commodity or chemical investment can delay large projects; the effect is strong on new equipment and lower on essential maintenance.
  • Standard valves face many local suppliers, competitive bids and third-party parts or repairs. A large installed base does not prove exclusive service.
  • Steel, specialty alloys, tariffs and freight can raise quoted project costs before suppliers recover them through price.
  • Global currency exposure changes reported sales, while trade restrictions and conflict can block shipping and field work.
  • Safety failures, poor repair availability and cybersecurity weaknesses in connected devices can damage trust.

Bulls & bears

Key question · as of Oct 8, 2026

Can Emerson turn its installed control, valve and software positions into repeat cash growth after transaction costs and tariff refunds fade, while keeping NI workflows reliable?

Arguments

4 forFaded: weakening or settled4 against

What to watch

  1. 1Software annual contract value and renewal timing
  2. 2Segment underlying sales and contract backlog
  3. 3Continuing operating cash flow and cash tax timing
  4. 4Service and spare-parts attachment if disclosed
  5. 5NI-PAL patch adoption and any disclosed customer disruption

Next check: Read FY2026 results and the NI-PAL update status before the November 10 Windows blocklist window; the earnings date is not yet confirmed by the company.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 7, 2026. Not investment advice.

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Moat Score 79/100 by <a href="https://www.findmymoat.com/stocks/XNYS:EMR">Find My Moat</a> (as of September 2026)

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