Emerson Electric Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 2 raised, 3 lowered, 9 new, 7 kept. The quarter’s numbers.

Key takeaways

Net sales rose 3 percent reported: Net sales were $4,562 million against $4,432 million, up 3% reported and 0.5% underlying. Six-month net sales were $8,908 million against $8,608 million. Source
GAAP and adjusted EPS both grew: GAAP diluted EPS was $1.10 against $0.86, up 28%. Adjusted EPS was $1.54 against $1.48, up 4%. Six-month diluted EPS was $2.17 against $1.88. Source
Test & Measurement sales grew most: Test & Measurement sales were $414 million, up 16% reported and 12% underlying. Its adjusted segment margin was 26.3% against 24.3%. Source
Underlying orders rose 5%: Underlying orders were up 5%, excluding AspenTech. Software & Systems was the segment cited as leading the orders growth. Source
Second half expected to be stronger: Management said 2026 continues to develop largely as expected, with a strong second half supported by orders momentum and a robust backlog. Source
Adjusted segment margin eased: Adjusted segment EBITA was $1,258 million, a 27.6% margin against 28.0%, down 40 basis points. Management said margins exceeded expectations. Source
Operating and free cash flow declined: Operating cash flow was $779 million against $825 million, and free cash flow was $694 million against $738 million, both down 6%. Capital expenditures were $85 million. Source

“Emerson's second quarter results reflect our ability to deliver in a dynamic environment,”
Lal Karsanbhai, President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Net sales growth (reported) Source	fiscal 2026	~4.5%	Lowered from ~5.5%
Net sales growth (reported) Source	third quarter of fiscal 2026	~5.5%	New
Underlying sales growth Source	fiscal 2026	~3%	Lowered from ~4%
Underlying sales growth Source	third quarter of fiscal 2026	~5%	New
Currency effect on sales growth Source	third quarter of fiscal 2026	~(0.5 pts)	New
Currency effect on sales growth Source	fiscal 2026	~(1.5 pts)	Kept
Diluted EPS (GAAP) Source	fiscal 2026	$4.79 - $4.89	Lowered from $4.78 - $4.93
Diluted EPS (GAAP) Source	third quarter of fiscal 2026	$1.22 - $1.27	New
Adjusted earnings per share Source	fiscal 2026	$6.45 - $6.55	Raised from $6.40 - $6.55
Adjusted earnings per share Source	third quarter of fiscal 2026	$1.65 - $1.70	New
Restructuring and related costs per share Source	fiscal 2026	~$0.18	Raised from ~$0.14
Restructuring and related costs per share Source	third quarter of fiscal 2026	~$0.06	New
Amortization of intangibles per share Source	fiscal 2026	~$1.38	Kept
Amortization of intangibles per share Source	third quarter of fiscal 2026	~$0.34	New
Acquisition and divestiture fees per share Source	fiscal 2026	~$0.06	Kept
Acquisition and divestiture fees per share Source	third quarter of fiscal 2026	~$0.02	New
Discrete taxes per share Source	fiscal 2026	~$0.04	Kept
Discrete taxes per share Source	third quarter of fiscal 2026	~$0.01	New
Operating cash flow Source	fiscal 2026	$4.0B - $4.1B	Kept
Free cash flow Source	fiscal 2026	$3.5B - $3.6B	Kept
Capital expenditures Source	fiscal 2026	~(0.45) in $ billions	Kept

What changed from last quarter

Guidance lowered: Full-year reported net sales growth guidance cut to about 4.5% from about 5.5%, and underlying sales growth guidance cut to about 3% from about 4%. Source
Guidance lowered: Full-year GAAP EPS range changed to $4.79 to $4.89 from $4.78 to $4.93, with a lower top end and midpoint. Source
Guidance raised: Full-year adjusted EPS low end raised to $6.45 from $6.40; high end unchanged at $6.55. Source
Guidance raised: Full-year restructuring and related costs guided to about $0.18 per share from about $0.14. Source
New guidance: Third-quarter 2026 guidance given for net sales growth, underlying sales growth, GAAP EPS and adjusted EPS. The prior release had no third-quarter figures. Source
Guidance kept: Operating cash flow, free cash flow, share repurchases of about $1 billion, and amortization of about $1.38 per share are unchanged from the prior release. Source
Ended: The second-quarter 2026 guidance from the prior release, covering net sales growth of 3% to 4% and underlying growth of 1% to 2%, has ended with the quarter.

Results and growth drivers

Net sales rose 3 percent reported: Net sales were $4,562 million against $4,432 million, up 3% reported and 0.5% underlying. Six-month net sales were $8,908 million against $8,608 million. Source
Pretax margin rose on lower other deductions: Pretax earnings were $793 million, a 17.4% margin, against $629 million and 14.2%. Other deductions fell to $229 million from $418 million, which included $168 million of acquisition and divestiture fees a year earlier. Source
GAAP and adjusted EPS both grew: GAAP diluted EPS was $1.10 against $0.86, up 28%. Adjusted EPS was $1.54 against $1.48, up 4%. Six-month diluted EPS was $2.17 against $1.88. Source

Segments and sales mix

Test & Measurement sales grew most: Test & Measurement sales were $414 million, up 16% reported and 12% underlying. Its adjusted segment margin was 26.3% against 24.3%. Source
Control Systems & Software sales slipped: Control Systems & Software sales were $1,089 million, flat reported and down 2% underlying. Its adjusted segment margin fell to 30.2% from 34.2%. Source
Software & Systems sales rose modestly: Software & Systems sales were $1,503 million, up 4% reported and 1% underlying. Its adjusted segment margin was 29.2% against 31.7%. Source
Intelligent Devices slightly down underlying: Intelligent Devices sales were $2,512 million, up 2% reported and down 1% underlying. Sensors was flat underlying and Final Control was down 1%. Source
Safety & Productivity grew underlying: Safety & Productivity sales were $547 million, up 5% reported and 2% underlying. Its adjusted segment margin was 21.7% against 21.8%. Source

“I want to thank our employees and customers in the Middle East for their unwavering commitment and resiliency.”
Lal Karsanbhai, President and Chief Executive Officer

Demand and order book

Underlying orders rose 5%: Underlying orders were up 5%, excluding AspenTech. Software & Systems was the segment cited as leading the orders growth. Source
Growth verticals cited as momentum: Management said it continues to see resilient demand and sustained momentum in its growth verticals, with orders led by Software & Systems. Source
Second half expected to be stronger: Management said 2026 continues to develop largely as expected, with a strong second half supported by orders momentum and a robust backlog. Source

Costs, margins and interest

Adjusted segment margin eased: Adjusted segment EBITA was $1,258 million, a 27.6% margin against 28.0%, down 40 basis points. Management said margins exceeded expectations. Source
Cost of sales and SG&A rose: Cost of sales was $2,140 million against $2,061 million, and SG&A was $1,316 million against $1,283 million, while net sales rose $130 million. Source
Interest expense more than doubled: Interest expense, net was $84 million against $41 million a year earlier. Six-month interest expense, net was $173 million against $50 million. Source
Restructuring costs rose, amortization eased: Amortization of intangibles was $205 million against $229 million. Restructuring costs were $45 million against $21 million. Source

Cash, debt and share repurchases

Operating and free cash flow declined: Operating cash flow was $779 million against $825 million, and free cash flow was $694 million against $738 million, both down 6%. Capital expenditures were $85 million. Source
Six-month operating cash flow higher: Six-month cash provided by operating activities was $1,478 million against $1,018 million. The prior year included $585 million of cash from discontinued operations. Source
Share repurchases below prior year: Six-month purchases of common stock were $542 million against $1,122 million. Dividends paid were $624 million against $598 million. Source
Short-term debt rose, long-term debt fell: Short-term borrowings and current maturities were $5,804 million at March 31, against $4,797 million at September 30, 2025. Long-term debt was $7,555 million against $8,319 million. Source

Regional sales mix

Americas sales grew in quarter: Quarter sales by geography: Americas up 5%, Europe down 4%, and Asia, Middle East & Africa down 5%. Source
Europe and Asia fell in quarter: Europe sales fell 4% and Asia, Middle East & Africa sales fell 5% in the quarter, while the Americas rose 5%. Source
Six-month regional growth lower outside Americas: Six-month sales growth by geography: Americas up 4%, Europe down 1%, and Asia, Middle East & Africa down 3%. Source

Coming up, as management said on 5 May 2026

Quarterly dividend payable June 10: A quarterly cash dividend of $0.555 per share was declared, payable June 10, 2026 to holders of record on May 15, 2026. Source

Figures management reported

Figure	Reported
Underlying orders growth Source	5%

Risks management discussed

External: Management said the conflict in the Middle East affected sales in the quarter, while margins exceeded expectations. Source

Earlier plans management reported on

Ahead: Management said the quarter's margins exceeded expectations, while sales were affected by the Middle East conflict. Source
Not stated: Management said 2026 continues to develop largely as expected, with a strong second half expected. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Emerson Reports Second Quarter 2026 Results; Updates 2026 Outlook

ST. LOUIS, May 5, 2026 /PRNewswire/ -- Emerson (NYSE: EMR) today reported results for its second quarter ended March 31, 2026 and updated its full year outlook for fiscal 2026. Emerson also declared a quarterly cash dividend of $0.555 per share of common stock payable June 10, 2026 to stockholders of record on May 15, 2026.

(dollars in millions, except per share)	2025 Q2	2026 Q2	Change
Underlying Orders			5%
Net Sales	$4,432	$4,562	3%
Underlying Sales			0.5%
Pretax Earnings	$629	$793
Margin	14.2%	17.4%	320 bps
Adjusted Segment EBITA	$1,240	$1,258
Margin	28.0%	27.6%	(40) bps
GAAP Earnings Per Share	$0.86	$1.10	28%
Adjusted Earnings Per Share	$1.48	$1.54	4%
Operating Cash Flow	$825	$779	(6)%
Free Cash Flow	$738	$694	(6)%

Management Commentary

“Emerson's second quarter results reflect our ability to deliver in a dynamic environment," said Emerson President and Chief Executive Officer Lal Karsanbhai. "While sales were impacted by the conflict in the Middle East, margins exceeded expectations, and we achieved strong adjusted earnings per share. Underlying orders were up 5% as we continue to see resilient demand, led by Software & Systems, with sustained momentum in our growth verticals."

Karsanbhai continued, "I want to thank our employees and customers in the Middle East for their unwavering commitment and resiliency. As we look ahead, 2026 continues to develop largely as expected with a strong second half, supported by orders momentum and a robust backlog."

2026 Outlook

The following tables summarize the fiscal year 2026 guidance framework. As we pivot capital allocation to returning cash to shareholders, the 2026 outlook assumes returning ~$2.2B through ~$1B share repurchases and ~$1.2B of dividends.

Guidance figures are approximate.	2026 Q3	2026
Net Sales Growth	~5.5%	~4.5%
Underlying Sales Growth	~5%	~3%
Earnings Per Share	$1.22 - $1.27	$4.79 - $4.89
Amortization of intangibles	~$0.34	~$1.38
Restructuring and related costs	~$0.06	~$0.18
Acquisition/divestiture fees and related costs	~$0.02	~$0.06
Discrete taxes	~$0.01	~$0.04
Adjusted Earnings Per Share	$1.65 - $1.70	$6.45 - $6.55
Operating Cash Flow		$4.0B - $4.1B
Free Cash Flow		$3.5B - $3.6B

Underlying orders do not include AspenTech.

Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.

Adjusted segment EBITA represents segment earnings excluding restructuring and intangibles amortization expense.

Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, acquisition/divestiture gains, losses, fees and related costs, and discrete taxes.

Conference Call

Today, beginning at 3:30 p.m. Central Time / 4:30 p.m. Eastern Time, Emerson management will discuss the second quarter results during an investor conference call. Participants can access a live webcast available at https://ir.emerson.com at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

About Emerson

Emerson (NYSE: EMR) is a global automation leader delivering solutions for the most demanding technology challenges. Headquartered in St. Louis, Missouri, Emerson is engineering the autonomous future, enabling customers to optimize operations and accelerate innovation. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Forward-looking statements notice

Statements in this press release that are not strictly historical may be “forward-looking” statements, which represent management’s expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this press release speak only as of the date of this press release. Emerson undertakes no obligation to update any such statements to reflect new information or later developments. Examples of risks and uncertainties that may cause our actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine, Middle East and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, https://ir.emerson.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation

FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases,

SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

(tables attached)

							Table 1
	Quarter Ended March 31,				Six Months Ended March 31,
	2025		2026		2025		2026
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Net sales	$4,432		$4,562		$8,608		$8,908
Cost of sales	2,061		2,140		4,002		4,174
SG&A expenses	1,283		1,316		2,506		2,559
Other deductions, net	418		229		646		434
Interest expense, net	41		84		50		173
Earnings before income taxes	629		793		1,404		1,568
Income taxes	199		175		382		344
Net earnings	430		618		1,022		1,224
Less: Noncontrolling interests in subsidiaries	(55)		-		(48)		1
Net earnings common stockholders	$485		$618		$1,070		$1,223
Diluted avg. shares outstanding	565.4		563.0		568.2		563.5
Diluted earnings per share common stockholders
Diluted earnings per common share	$0.86		$1.10		$1.88		$2.17
	Quarter Ended March 31,				Six Months Ended March 31,
		2025		2026		2025		2026
Other deductions, net
Amortization of intangibles	$229		$205		$457		$409
Restructuring costs	21		45		32		53
Other	168		(21)		157		(28)
Total	$418		$229		$646		$434

		Table 2
	Sept 30, 2025	March 31, 2026
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Assets
Cash and equivalents	$1,544	$1,791
Receivables, net	3,101	3,158
Inventories	2,213	2,452
Other current assets	1,725	1,850
Total current assets	8,583	9,251
Property, plant & equipment, net	2,871	2,850
Goodwill	18,193	18,153
Other intangible assets	9,458	8,954
Other	2,859	2,880
Total assets	$41,964	$42,088
Liabilities and equity
Short-term borrowings and current maturities of long-term debt	$4,797	$5,804
Accounts payable	1,384	1,468
Accrued expenses	3,616	3,382
Total current liabilities	9,797	10,654
Long-term debt	8,319	7,555
Other liabilities	3,550	3,560
Equity
Common stockholders' equity	20,282	20,303
Noncontrolling interests in subsidiaries	16	16
Total equity	20,298	20,319
Total liabilities and equity	$41,964	$42,088

			Table 3
	Six Months Ended March 31,
	2025		2026
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Operating activities
Net earnings	$1,022		$1,224
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	767		728
Stock compensation	127		113
Changes in operating working capital	(203)		(613)
Other, net	(110)		26
Cash from continuing operations		1,603		1,478
Cash from discontinued operations		(585)		-
Cash provided by operating activities		1,018		1,478
Investing activities
Capital expenditures	(170)		(182)
Purchases of businesses, net of cash and equivalents acquired	(36)		-
Other, net	(58)		(24)
Cash used in investing activities	(264)		(206)
Financing activities
Net increase in short-term borrowings	2,628		2,027
Proceeds from short-term borrowings greater than three months	2,496		4,447
Payments of short-term borrowings greater than three months	-		(5,611)
Proceeds from long-term debt	1,544		-
Payments of long-term debt	(2)		(587)
Dividends paid	(598)		(624)
Purchases of common stock	(1,122)		(542)
Purchase of noncontrolling interest	(7,171)		-
Settlement of AspenTech share awards	(76)		-
Other, net	(81)		(123)
Cash used in financing activities	(2,382)		(1,013)
Effect of exchange rate changes on cash and equivalents	(73)		(12)
Increase (decrease) in cash and equivalents	(1,701)		247
Beginning cash and equivalents	3,588		1,544
Ending cash and equivalents	$1,887		$1,791

Table 4

SEGMENT SALES AND EARNINGS

(DOLLARS IN MILLIONS, UNAUDITED)

The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to supplement the Company's results of operations, including its segment earnings which are defined as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.

	Quarter Ended March 31,
	2025	2026	Reported	Underlying
Sales
Control Systems & Software	$1,093	$1,089	- %	(2)%
Test & Measurement	358	414	16%	12%
Software & Systems	$1,451	$1,503	4%	1%
Sensors	1,000	1,024	2%	- %
Final Control	1,459	1,488	2%	(1)%
Intelligent Devices	$2,459	$2,512	2%	(1)%
Safety & Productivity	$522	$547	5%	2%
Total	$4,432	$4,562	3%	0.5%

	Quarter Ended March 31,
Sales Growth by Geography
Americas	5%
Europe	(4)%
Asia, Middle East & Africa	(5)%

	Six Months Ended March 31,
	2025	2026	Reported	Underlying
Sales
Control Systems & Software	$2,116	$2,133	1%	(1)%
Test & Measurement	717	823	15%	12%
Software & Systems	$2,833	$2,956	4%	2%
Sensors	1,972	2,020	2%	- %
Final Control	2,793	2,882	3%	- %
Intelligent Devices	$4,765	$4,902	3%	- %
Safety & Productivity	$1,010	$1,050	4%	2%
Total	$8,608	$8,908	3%	1%

	Six Months Ended March 31,
Sales Growth by Geography
Americas	4%
Europe	(1)%
Asia, Middle East & Africa	(3)%

	Quarter Ended March 31,				Quarter Ended March 31,
	2025				2026
	As Reported (GAAP)		Adjusted EBITA (Non-GAAP)		As Reported (GAAP)		Adjusted EBITA (Non-GAAP)
Earnings
Control Systems & Software		$238		$375		$224		$329
Margins	21.7%		34.2%		20.6%		30.2%
Test & Measurement	(24)		87		(5)		109
Margins	(6.8)%		24.3%		(1.2)%		26.3%
Software & Systems		$214		$462		$219		$438
Margins	14.6%		31.7%		14.6%		29.2%
Sensors	266		279		276		296
Margins	26.6%		27.9%		27.0%		28.9%
Final Control	355		386		353		405
Margins	24.4%		26.5%		23.7%		27.2%
Intelligent Devices		$621		$665		$629		$701
Margins	25.3%		27.1%		25.0%		27.9%
Safety & Productivity		$105		$113		$109		$119
Margins	20.2%		21.8%		19.8%		21.7%
Corporate items and interest expense, net:
Stock compensation	(59)		(50)		(57)		(53)
Unallocated pension and postretirement costs	27		27		28		28
Corporate and other	(238)		(74)		(51)		(39)
Interest expense, net	(41)		-		(84)		-
Pretax Earnings / Adjusted EBITA		$629		$1,143		$793		$1,194
Margins	14.2%		25.8%		17.4%		26.2%
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA				$1,240				$1,258
Margins			28.0%				27.6%

	Quarter Ended March 31,		Quarter Ended March 31,
	2025		2026
	Amortization of Intangibles	Restructuring and Related Costs	Amortization of Intangibles	Restructuring and Related Costs
Control Systems & Software	$128	$9	$101	$4
Test & Measurement	105	6	107	7
Software & Systems	$233	$15	$208	$11
Sensors	11	2	12	8
Final Control	28	3	27	25
Intelligent Devices	$39	$5	$39	$33
Safety & Productivity	$6	$2	$7	$3
Corporate	-	5	-	6
Total	$278	$27	$254	$53
Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended March 31, 2025 and 2026, respectively.
Restructuring and related costs includes $6 and $8 reported in cost of sales and selling, general and administrative expenses for the three months ended March 31, 2025 and 2026, respectively.

	Quarter Ended March 31,
Depreciation and Amortization		2025		2026
Control Systems & Software	$148		$125
Test & Measurement	119		120
Software & Systems	267		245
Sensors	32		34
Final Control	56		58
Intelligent Devices	88		92
Safety & Productivity	18		19
Corporate	11		13
Total	$384		$369

Table 5

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(DOLLARS IN MILLIONS, UNAUDITED)

The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis. The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

	Quarter Ended March 31,
	2025	2026
Stock compensation (GAAP)	$(59)	$(57)
Integration-related stock compensation expense	9	4
Adjusted stock compensation (non-GAAP)	$(50)	$(53)

	Quarter Ended March 31,
	2025	2026
Corporate and other (GAAP)	$(238)	$(51)
Corporate restructuring and related costs	4	5
Acquisition / divestiture costs	160	7
Adjusted corporate and other (non-GAAP)	$(74)	$(39)
Integration-related stock compensation expense for the three months ended March 31, 2025 relates to AspenTech and includes $1 reported as restructuring costs.

Table 6

ADJUSTED EBITA & EPS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, discrete taxes, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.

	Quarter Ended March 31,
	2025		2026
Pretax earnings		$629		$793
Percent of sales	14.2%		17.4%
Interest expense, net		41		84
Amortization of intangibles		278		254
Restructuring and related costs		27		53
Acquisition/divestiture fees and related costs		168		10
Adjusted EBITA		$1,143		$1,194
Percent of sales	25.8%		26.2%
	Quarter Ended March 31,
		2025		2026
GAAP earnings per share		$0.86		$1.10
Amortization of intangibles		0.32		0.35
Restructuring and related costs		0.04		0.07
Discrete taxes		0.09		0.01
Acquisition/divestiture fees and related costs		0.17		0.01
Adjusted earnings per share		$1.48		$1.54

Table 6 cont.

	Pretax Earnings		Income Taxes		Net Earnings		Non-Controlling Interests	Net Earnings Common Stockholders		Diluted Earnings Per Share
Quarter Ended March 31, 2026
As reported (GAAP)	$793		$175		$618		$ -	$618		$1.10
Amortization of intangibles		254		59		195	-		195		0.35
Restructuring and related costs		53		11		42	-		42		0.07
Acquisition/divestiture fees and related costs		10		2		8	-		8		0.01
Discrete taxes		-		(6)		6	-		6		0.01
Adjusted (non-GAAP)	$1,110		$241		$869		$ -	$869		$1.54
Interest expense, net	84
Adjusted EBITA (non-GAAP)	$1,194
Amortization of intangibles includes $49 reported in cost of sales.
Restructuring and related costs includes $8 reported in cost of sales and selling, general and administrative expenses.

Reconciliations of Non-GAAP Financial Measures & Other	Table 7
Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 6 for additional non-GAAP reconciliations.

2026 Q2 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions) / Divestitures	Underlying
Control Systems & Software	- %	(2)%	- %	(2)%
Test & Measurement	16%	(4)%	- %	12%
Software & Systems	4%	(3)%	- %	1%
Sensors	2%	(2)%	- %	- %
Final Control	2%	(3)%	- %	(1)%
Intelligent Devices	2%	(3)%	- %	(1)%
Safety & Productivity	5%	(3)%	- %	2%
Emerson	3%	(2.5)%	- %	0.5%

Six Months Ended March 31, 2026 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions) / Divestitures	Underlying
Control Systems & Software	1%	(2)%	- %	(1)%
Test & Measurement	15%	(3)%	- %	12%
Software & Systems	4%	(2)%	- %	2%
Sensors	2%	(2)%	- %	- %
Final Control	3%	(3)%	- %	- %
Intelligent Devices	3%	(3)%	- %	- %
Safety & Productivity	4%	(2)%	- %	2%
Emerson	3%	(2)%	- %	1%

Underlying Growth Guidance	2026 Q3 Guidance	2026 Guidance
Reported (GAAP)	~5.5%	~4.5%
(Favorable) / Unfavorable FX	~(0.5 pts)	~(1.5 pts)
(Acquisitions) / Divestitures	-	-
Underlying (non-GAAP)	~5%	~3%

2025 Q2 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Control Systems & Software	$238	21.7%	$128	$9	$375	34.2%
Test & Measurement	(24)	(6.8)%	105	6	87	24.3%
Software & Systems	$214	14.6%	$233	$15	$462	31.7%
Sensors	266	26.6%	11	2	279	27.9%
Final Control	355	24.4%	28	3	386	26.5%
Intelligent Devices	$621	25.3%	$39	$5	$665	27.1%
Safety & Productivity	$105	20.2%	$6	$2	$113	21.8%

2026 Q2 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Control Systems & Software	$224	20.6%	$101	$4	$329	30.2%
Test & Measurement	(5)	(1.2)%	107	7	109	26.3%
Software & Systems	$219	14.6%	$208	$11	$438	29.2%
Sensors	276	27.0%	12	8	296	28.9%
Final Control	353	23.7%	27	25	405	27.2%
Intelligent Devices	$629	25.0%	$39	$33	$701	27.9%
Safety & Productivity	$109	19.8%	$7	$3	$119	21.7%

Total Adjusted Segment EBITA	2025 Q2		2026 Q2
Pretax earnings (GAAP)		$629		$793
Margin	14.2%		17.4%
Corporate items and interest expense, net		311		164
Amortization of intangibles		278		254
Restructuring and related costs		22		47
Adjusted segment EBITA (non-GAAP)		$1,240		$1,258
Margin	28.0%		27.6%

Free Cash Flow	2025 Q2		2026 Q2		2025E ($ in billions)
Operating cash flow (GAAP)	$825		$779		$4.0 - $4.1
Capital expenditures		(87)		(85)	~(0.45)
Free cash flow (non-GAAP)	$738		$694		$3.5 - $3.6

Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2026E figures are approximate, except where range is given.

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