Emerson Electric Co. (EMR) AI Stock Analysis

Emerson Electric Co. provides technology and engineering solutions across industrial, commercial, and consumer markets. The company operates through three principal segments: Automation Solutions, AspenTech, and Commercial & Residential Solutions. Automation Solutions delivers measurement and analytical instrumentation, industrial valves, and process control systems for industries such as oil and gas, chemicals, and power generation. AspenTech provides asset optimization software featuring modeling and simulation tools to optimize industrial manufacturing processes. Commercial & Residential Solutions provides heating, air conditioning, and refrigeration products, including compressors, thermostats, and control systems, alongside facility design, commissioning, and energy modeling services.

Emerson Electric grew revenue from $12.93B in FY2021 to $18.02B in FY2025, representing a 5-year revenue CAGR of 1.4% from FY2020 to FY2025. Annual revenue expanded 15.3% in FY2024 and 3.0% in FY2025, while gross margin improved continuously from 44.3% in FY2021 to 52.8% in FY2025. Operating margin rose to 19.6% in FY2025, with net income reaching $2.29B and EPS rising to $6.00. Over the trailing twelve months, revenue totaled $18.64B with an operating margin of 26.9% and a profit margin of 13.8%. For the latest quarter ended June 30, 2026, quarterly revenue grew 7.0% year-over-year, and quarterly earnings grew 23.0%.

As of June 30, 2026, Emerson Electric held $2.18B in cash and short-term investments against total debt of $13.80B, resulting in net debt of $11.62B. Shareholders' equity stood at $20.38B, reflecting a debt-to-equity ratio of 0.68 and a current ratio of 0.90. In FY2025, the company generated $3.10B in operating cash flow and $2.67B in free cash flow. Capital allocation in FY2025 included capital expenditures of $431.0M, share buybacks of $1.24B, and dividends paid of $1.19B, contributing to a 5-year share count reduction of 6.2%.

At a closing price of $161.47, Emerson Electric carries a market cap of $90.07B and an enterprise value of $97.31B. The stock trades at a trailing P/E of 35.3x and a forward P/E of 21.5x, compared to the median of its S&P 500 Industrials peers of 28.4x and 20.1x, respectively. Its EV/EBITDA of 18.6x and price-to-sales of 4.9x also sit above the peer medians of 17.2x and 3.1x. Over the past year, EMR returned 27.2%, outpacing the 16.8% return of the S&P 500, while its 5-year return of 86.2% exceeded the benchmark's 83.0%.

Emerson Electric pays a quarterly dividend with an annualized forward rate of $2.22 per share, representing a dividend yield of 1.37%. The payout ratio stands at 35.1%, and dividends have been paid for 55 consecutive years. Over the past five years, dividend growth annualized at 1.3%. The company's last ex-dividend date occurred on August 14, 2026.

Wall Street coverage consists of 16 Strong Buy, 4 Buy, 8 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target is $175.14, representing an 8.5% upside from the last close of $161.47. For the fiscal year ending September 30, 2026, analysts estimate revenue of $18.90B and EPS of $6.56, implying 9.4% EPS growth. Emerson beat EPS estimates in 3 of the last 4 quarters, and the next earnings date is November 4, 2026.

This page is an AI-written research summary of Emerson Electric Co. (EMR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: EMR income statement, EMR balance sheet, EMR key metrics, EMR analyst forecast, EMR chart. See the EMR stock overview for the latest quote and news.