Emerson Electric Q3 FY2026: Sales Up 7%, Adjusted EPS $1.71; Tariff Refunds Boost Margins
EMR sits 26% above its 52-week low of $122.635 on elevated volume (1.8× avg).
Summary
Emerson Electric reported Q3 FY2026 earnings with net sales of $4.9 billion, up 7% year-over-year, and adjusted diluted EPS of $1.71, up 13%. Results were aided by an $82 million tariff refund, and the company raised its full-year adjusted EPS guidance to approximately $6.55.
Key Events · Earnings and Guidance · EMR
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Q3 Sales and Earnings Beat
Net sales of $4.9B rose 7% YoY; adjusted diluted EPS of $1.71 increased 13% from $1.52 a year ago, driven by strong demand in power, LNG, and semiconductor markets.
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IEEPA Tariff Refund Boosts Margins
Received $82M ($0.11/share) in tariff refunds following a Supreme Court ruling, recorded in cost of sales. No additional refunds recognized; timing and amount of further refunds remain uncertain.
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Full-Year Guidance Raised
Fiscal 2026 outlook raised: net sales up ~5%, adjusted EPS ~$6.55 (vs. prior implied ~$6.44), operating cash flow ~$4.1B, and free cash flow ~$3.6B. Plans ~$1.0B in share repurchases and ~$1.2B in dividends.
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Aggressive Share Repurchases
Repurchased $898M of common stock in the first nine months of fiscal 2026, with 63.2M shares remaining under authorization. Buybacks reflect strong cash generation and confidence in the business.
Analysis · EMR · Manufacturing
Emerson delivered a strong quarter with 7% sales growth and 13% adjusted EPS growth, driven by broad-based demand in power, LNG, and semiconductor end markets. A one-time $82 million IEEPA tariff refund lifted gross margins, but underlying operating performance was solid across all segments. The company raised its full-year adjusted EPS outlook to approximately $6.55, implying continued momentum. Share repurchases of $898 million year-to-date underscore management's confidence in the business and commitment to returning capital to shareholders.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.4% of the 1637 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, EMR was trading at $155.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $89B. The 52-week trading range was $122.64 to $165.15. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.