Emerson Lifts Profit Forecast on Strong Automation Demand

Emerson Raises 2026 Earnings Outlook

Emerson Electric has increased its 2026 adjusted earnings per share forecast after reporting a rise in its first-quarter profit. The positive outlook is attributed to sustained strong demand for its industrial automation solutions, particularly in its software and systems segment.

Performance and Regional Strength

For the quarter ending December 31, 2025, Emerson's net sales reached $4.35 billion, a 4% increase year-over-year. The company's software and systems business saw sales grow by 5% to $1.45 billion, fueled by robust performance in North America, India, and the Middle East and Africa.

Revised Financial Guidance

The company reported an adjusted quarterly profit of $1.46 per share, surpassing the $1.38 from the previous year. Following these results, Emerson now expects its full-year 2026 adjusted profit to be between $6.40 and $6.55 per share, raising the lower end from the previous $6.35 estimate.

Summary

The updated guidance signals Emerson's confidence in the ongoing strength of the automation market. Investors will monitor whether this demand momentum continues through the remainder of the fiscal year.

FAQ

Q: Why did Emerson raise its profit forecast?
A: Emerson raised its forecast due to a strong first-quarter performance driven by robust demand for its industrial automation equipment and software.

Q: What is Emerson's new adjusted profit forecast for 2026?
A: The company now forecasts an adjusted profit between $6.40 and $6.55 per share for 2026.

Source: Investing.com