EMR · Q3 FY2026
EMERSON ELECTRIC CO Q3 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $4.873B | $4.553B (Q3 FY2025, yr ago) | Beat |
| EPS | $1.28 GAAP | $1.03 (Q3 FY2025, yr ago) | Beat |
| Free Cash Flow | $1.323B | $970M (Q3 FY2025, yr ago) | Beat |
| Gross Margin | 54.5% | 52.6% (Q3 FY2025, yr ago) | Beat |
| Operating Margin | 18.8% | 16.1% (Q3 FY2025, yr ago) | Beat |
What changed
Revenue increased 7.0% year over year, while GAAP EPS rose 24.3% and free cash flow increased 36.4%. Margin expansion and 7.0% underlying order growth led management to raise FY2026 guidance to $4.89 of GAAP EPS, $6.55 of adjusted EPS and $3.6B of free cash flow.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We establish fair value at $148 per share: stronger demand, margins and cash generation improve the operating thesis, but the current price already discounts the raised outlook.