Emerson Electric Co.: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 19 new. The quarter’s numbers.

Key takeaways

Fourth-quarter sales rose 7%: The company reported fourth-quarter net sales of $5,201 million, up 7% from $4,855 million. Fiscal 2026 net sales were $18,982 million, up 5%, with underlying sales up 4% for the year. Source
Per-share earnings rose on both measures: Fourth-quarter GAAP diluted EPS from continuing operations was $1.33, up 24%, and adjusted EPS was $1.86, up 15%. Fiscal 2026 GAAP EPS was $4.79 and adjusted EPS $6.59. Source
Software and Systems grew 14%: Software and Systems sales were $1,712 million in the quarter, up 14% reported and 14% underlying. Control Systems and Software rose 14% and Test and Measurement rose 14% reported. Source
Segment margin rose to 29.1%: Adjusted segment EBITA was $1,511 million in the quarter, a 29.1% margin, up 160 basis points. Fiscal 2026 adjusted segment EBITA was $5,360 million, a 28.2% margin, up 60 basis points. Source
Underlying orders rose 14% in quarter: Underlying orders rose 14% in the fourth quarter and 9% for fiscal 2026. Management attributed the quarterly increase to long-cycle project activity in its growth verticals. Source
Free cash flow rose 9% for year: Fiscal 2026 operating cash flow was $3,978 million, up 8%, and free cash flow was $3,535 million, up 9%. Fourth-quarter free cash flow was $916 million, up 9%. Source

“Emerson capped a strong 2026 with fourth quarter sales and profitability exceeding expectations”
Emerson President and Chief Executive Officer Lal Karsanbhai

Guidance

Area	Period	Figure	Against last quarter
Net sales growth Source	first quarter 2027	~5%	New
Net sales growth Source	fiscal 2027	~5%	New
Underlying sales growth Source	first quarter 2027	~5%	New
Underlying sales growth Source	fiscal 2027	~5%	New
GAAP diluted EPS Source	first quarter 2027	$1.19 - $1.23	New
GAAP diluted EPS Source	fiscal 2027	~$5.70	New
Amortization of intangibles per share Source	first quarter 2027	~$0.35	New
Amortization of intangibles per share Source	fiscal 2027	~$1.41	New
Restructuring and related costs per share Source	first quarter 2027	~$0.04	New
Restructuring and related costs per share Source	fiscal 2027	~$0.14	New
Adjusted diluted EPS Source	first quarter 2027	$1.58 - $1.62	New
Adjusted diluted EPS Source	fiscal 2027	~$7.25	New
Operating cash flow Source	fiscal 2027	$4.3B - $4.4B	New
Free cash flow Source	fiscal 2027	$3.8B - $3.9B	New
Share repurchases Source	first quarter 2027	~$1.5B	New
Share repurchases Source	fiscal 2027	~$2.5B	New
Dividends Source	fiscal 2027	~$1.3B	New
Total cash returned to shareholders Source	fiscal 2027	~$3.8B	New
Capital expenditures Source	fiscal 2027	~(0.5)	New

What changed from last quarter

New guidance: Initial fiscal 2027 guidance framework given, covering net sales, underlying sales, EPS, cash flow and share repurchases. Source
New: Quarterly cash dividend increased 7% to $0.595 per share, payable December 10, 2026 to holders of record November 13, 2026. Source
New: Prior results were recast for mark-to-market accounting on defined benefit pension and other postretirement plans.

Results and growth drivers

Fourth-quarter sales rose 7%: The company reported fourth-quarter net sales of $5,201 million, up 7% from $4,855 million. Fiscal 2026 net sales were $18,982 million, up 5%, with underlying sales up 4% for the year. Source
Pretax margin rose on higher earnings: Fourth-quarter pretax earnings were $997 million, a 19.2% margin against 15.6% a year earlier. Fiscal 2026 pretax earnings were $3,489 million, an 18.4% margin, up 230 basis points. Source
Per-share earnings rose on both measures: Fourth-quarter GAAP diluted EPS from continuing operations was $1.33, up 24%, and adjusted EPS was $1.86, up 15%. Fiscal 2026 GAAP EPS was $4.79 and adjusted EPS $6.59. Source
Share count and net earnings moved: Diluted average shares were 559.7 million in the fourth quarter against 565.5 million a year earlier. Fiscal 2026 net earnings to common stockholders were $2,691 million against $2,270 million. Source

Segments and regions

Software and Systems grew 14%: Software and Systems sales were $1,712 million in the quarter, up 14% reported and 14% underlying. Control Systems and Software rose 14% and Test and Measurement rose 14% reported. Source
Sensors and Final Control grew slower: Sensors sales grew 4% reported and 3% underlying, and Final Control grew 5%. Intelligent Devices rose 5% reported and 4% underlying to $2,916 million. Source
Test and Measurement grew fastest for year: Test and Measurement fiscal 2026 sales were $1,732 million, up 17% reported and 15% underlying, the fastest growth among the segments for the year. Source
Americas and Asia grew, Europe declined: Quarterly sales grew 9% in the Americas, 1% in Europe and 7% in Asia, Middle East and Africa. For the year, Europe declined 1% and the Americas rose 7%. Source

“Underlying orders were up 14%, supported by exceptional long-cycle project activity in our growth verticals.”
Emerson President and Chief Executive Officer Lal Karsanbhai

Margins and cost lines

Segment margin rose to 29.1%: Adjusted segment EBITA was $1,511 million in the quarter, a 29.1% margin, up 160 basis points. Fiscal 2026 adjusted segment EBITA was $5,360 million, a 28.2% margin, up 60 basis points. Source
Control Systems margin reached 33.1%: Control Systems and Software adjusted margin was 33.1% in the quarter, up from 27.0%. Test and Measurement adjusted margin rose to 30.3% from 28.5%. Source
Sensors margin edged lower: Sensors adjusted margin was 30.0% in the quarter against 30.3% a year earlier, on adjusted EBITA of $357 million. Source
Cost of sales and SG&A increased: Fiscal 2026 cost of sales was $8,854 million against $8,497 million, and SG&A was $5,296 million against $5,103 million. Other deductions, net fell to $1,009 million from $1,274 million. Source
Restructuring costs rose for year: Restructuring costs were $46 million in the quarter against $66 million, and $187 million for fiscal 2026 against $136 million. Amortization of intangibles was $816 million against $884 million. Source
Tariff refunds excluded from adjusted results: IEEPA tariff refunds, net of a charitable trust contribution, were a $9 million item in fourth-quarter corporate costs and $91 million for fiscal 2026, excluded from adjusted results. Source

Demand and order book

Underlying orders rose 14% in quarter: Underlying orders rose 14% in the fourth quarter and 9% for fiscal 2026. Management attributed the quarterly increase to long-cycle project activity in its growth verticals. Source
Demand grew across groups and regions: Management said demand was broad-based, with growth across all business groups and regions in the quarter. Source

“We have confidence in our 2027 plans given our robust backlog and favorable demand trends in our growth verticals.”
Emerson President and Chief Executive Officer Lal Karsanbhai

Cash flow and balance sheet

Free cash flow rose 9% for year: Fiscal 2026 operating cash flow was $3,978 million, up 8%, and free cash flow was $3,535 million, up 9%. Fourth-quarter free cash flow was $916 million, up 9%. Source
Working capital absorbed more cash: Changes in operating working capital used $338 million in fiscal 2026 against $9 million a year earlier. Capital expenditures were $443 million for the year, against $431 million. Source
Year-end cash and debt balances: Cash and equivalents were $1,806 million at fiscal year-end, against $1,544 million. Short-term borrowings and current maturities were $4,667 million and long-term debt was $7,508 million. Source

Shareholder payouts and share count

Fiscal 2026 dividends and buybacks: Dividends paid in fiscal 2026 were $1,244 million against $1,192 million. Purchases of common stock were $1,000 million against $1,167 million. Source
Diluted share count declined: Diluted average shares outstanding were 562.0 million for fiscal 2026 against 566.7 million for fiscal 2025, a lower count across both periods reported. Source

Strategy and 2027 framework

Technology stack positioned for trends: Management described an unparalleled software-defined technology stack aligned with long-term secular trends, and its portfolio as resilient. Source
2027 figures are approximate: The company said its fiscal 2027 figures are approximate, except where a range is given. Source

Accounting basis and adjustments

Continuing operations basis used: The release presents results on a continuing operations basis, with adjusted measures excluding amortization, restructuring, acquisition costs and pension mark-to-market effects. Source

Figures management reported

Figure	Reported
Underlying orders growth, fourth quarter Source	14%
Underlying orders growth, fiscal year Source	9%

Earlier plans management reported on

Ahead: Management said fourth-quarter sales and profitability exceeded expectations, capping fiscal 2026. 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 Fourth Quarter and Full Year 2026 Results;

Provides Initial 2027 Outlook

ST. LOUIS (November 4, 2026) - Emerson (NYSE: EMR) today reported results for its fourth quarter and fiscal year ended September 30, 2026. Emerson also declared a 7% quarterly cash dividend increase to $0.595 per share of common stock payable December 10, 2026 to stockholders of record November 13, 2026.

(dollars in millions, except per share)	2025 Q4	2026 Q4	Change	2025	2026	Change
Underlying Orders			14%			9%
Net Sales	$4,855	$5,201	7%	$18,016	$18,982	5%
Underlying Sales			7%			4%
Pretax Earnings	$760	$997		$2,905	$3,489
Margin	15.6%	19.2%	360 bps	16.1%	18.4%	230 bps
Adjusted Segment EBITA	$1,333	$1,511		$4,975	$5,360
Margin	27.5%	29.1%	160 bps	27.6%	28.2%	60 bps
GAAP Earnings Per Share	$1.07	$1.33	24%	$3.99	$4.79	20%
Adjusted Earnings Per Share	$1.62	$1.86	15%	$6.01	$6.59	10%
Operating Cash Flow	$1,011	$1,075	6%	$3,676	$3,978	8%
Free Cash Flow	$843	$916	9%	$3,245	$3,535	9%

Management Commentary

"Emerson capped a strong 2026 with fourth quarter sales and profitability exceeding expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Underlying orders were up 14%, supported by exceptional long-cycle project activity in our growth verticals. Demand was broad-based, with substantial growth across all business groups and regions."

Karsanbhai continued, "Emerson has a resilient portfolio with an unparalleled software-defined technology stack aligned with long-term secular trends. We have confidence in our 2027 plans given our robust backlog and favorable demand trends in our growth verticals."

2027 Outlook

The following tables summarize the fiscal year 2027 guidance framework, which assumes returning ~$3.8B through ~$2.5B of share repurchases and ~$1.3B of dividends.

Guidance figures are approximate.	2027 Q1	2027
Net Sales Growth	~5%	~5%
Underlying Sales Growth	~5%	~5%
Earnings Per Share	$1.19 - $1.23	~$5.70
Amortization of intangibles	~$0.35	~$1.41
Restructuring and related costs	~$0.04	~$0.14
Adjusted Earnings Per Share	$1.58 - $1.62	~$7.25
Operating Cash Flow		$4.3B - $4.4B
Free Cash Flow		$3.8B - $3.9B
Share Repurchase	~$1.5B	~$2.5B

Results are presented on a continuing operations basis.

Underlying orders do not include AspenTech.

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

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

Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, first year purchase accounting related items and transaction-related costs, the mark-to-market adjustment on pension and other postretirement plans, discrete taxes, and certain gains, losses or impairments.

Conference Call

Today, beginning at 7:30 a.m. Central Time / 8:30 a.m. Eastern Time, Emerson management will discuss the fourth quarter and fiscal year 2026 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.

							Table 1
	Quarter Ended September 30,				Year Ended September 30,
	2025		2026		2025		2026
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Net sales	$4,855		$5,201		$18,016		$18,982
Costs and expenses:
Cost of sales	2,335		2,461		8,497		8,854
SG&A expenses	1,330		1,393		5,103		5,296
Other deductions, net	338		274		1,274		1,009
Interest expense, net	92		76		237		334
Earnings from continuing operations before income taxes	760		997		2,905		3,489
Income taxes	152		253		690		796
Earnings from continuing operations	608		744		2,215		2,693
Discontinued operations, net of tax	1		-		8		-
Net earnings	609		744		2,223		2,693
Less: Noncontrolling interests in subsidiaries	-		-		(47)		2
Net earnings common stockholders	$609		$744		$2,270		$2,691
Earnings common stockholders
Earnings from continuing operations	$608		$744		$2,262		$2,691
Discontinued operations	1		-		8		-
Net earnings common stockholders	$609		$744		$2,270		$2,691
Diluted avg. shares outstanding	565.5		559.7		566.7		562.0
Diluted earnings per share common stockholders
Earnings from continuing operations	$1.07		$1.33		$3.99		$4.79
Discontinued operations	0.01		-		0.01		-
Diluted earnings per common share	$1.08		$1.33		$4.00		$4.79
	Quarter Ended September 30,				Year Ended September 30,
		2025		2026		2025		2026
Other deductions, net
Amortization of intangibles	$208		$203		$884		$816
Restructuring costs	66		46		136		187
Other	64		25		254		6
Total	$338		$274		$1,274		$1,009

		Table 2
	Year Ended Sept 30,
	2025	2026
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Assets
Cash and equivalents	$1,544	$1,806
Receivables, net	3,101	3,317
Inventories	2,213	2,432
Other current assets	1,725	1,962
Total current assets	8,583	9,517
Property, plant & equipment, net	2,871	2,859
Goodwill	18,193	18,104
Other intangible assets	9,458	8,442
Other	2,859	2,892
Total assets	$41,964	$41,814
Liabilities and equity
Short-term borrowings and current
maturities of long-term debt	$4,797	$4,667
Accounts payable	1,384	1,698
Accrued expenses	3,616	3,753
Total current liabilities	9,797	10,118
Long-term debt	8,319	7,508
Other liabilities	3,550	3,432
Equity
Common stockholders' equity	20,282	20,740
Noncontrolling interests in subsidiaries	16	16
Total equity	20,298	20,756
Total liabilities and equity	$41,964	$41,814

		Table 3
	Year Ended Sept 30,
	2025	2026
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Operating activities
Net earnings	$2,223	$2,693
Earnings from discontinued operations, net of tax	(8)	-
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,518	1,478
Stock compensation	263	237
Pension expense (income)	9	(25)
Pension funding	(46)	(38)
Changes in operating working capital	(9)	(338)
Other, net	(274)	(29)
Cash from continuing operations	3,676	3,978
Cash from discontinued operations	(578)	-
Cash provided by operating activities	3,098	3,978
Investing activities
Capital expenditures	(431)	(443)
Purchases of businesses, net of cash and equivalents acquired	(37)	(6)
Other, net	(125)	(6)
Cash used in investing activities	(593)	(455)
Financing activities
Net increase in short-term borrowings	1,110	2,051
Proceeds from short-term borrowings greater than three months	8,008	7,058
Payments of short-term borrowings greater than three months	(4,918)	(9,388)
Proceeds from long-term debt	1,544	-
Payments of long-term debt	(503)	(588)
Dividends paid	(1,192)	(1,244)
Purchases of common stock	(1,167)	(1,000)
Purchase of noncontrolling interest	(7,244)	-
Repurchase of AspenTech share awards	(76)	-
Other, net	(72)	(111)
Cash used in financing activities	(4,510)	(3,222)
Effect of exchange rate changes on cash and equivalents	(39)	(39)
Increase (Decrease) in cash and equivalents	(2,044)	262
Beginning cash and equivalents	3,588	1,544
Ending cash and equivalents	$1,544	$1,806

Table 4

SEGMENT SALES AND EARNINGS

(AMOUNTS 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 Sept 30,
	2025	2026	Reported	Underlying
Sales
Control Systems & Software	1,099	$1,247	14%	14%
Test & Measurement	407	465	14%	15%
Software & Systems	$1,506	$1,712	14%	14%
Sensors	1,149	1,191	4%	3%
Final Control	1,637	1,725	5%	5%
Intelligent Devices	$2,786	$2,916	5%	4%
Safety & Productivity	$563	$573	2%	2%
Total	$4,855	$5,201	7%	7%

	Quarter Ended Sept 30,
Sales Growth by Geography
Americas	9%
Europe	1%
Asia, Middle East & Africa	7%

	Year Ended Sept 30,
	2025	2026	Reported	Underlying
Sales
Control Systems & Software	4,334	$4,580	6%	5%
Test & Measurement	1,485	1,732	17%	15%
Software & Systems	$5,819	$6,312	8%	7%
Sensors	4,135	4,302	4%	3%
Final Control	5,952	6,194	4%	2%
Intelligent Devices	$10,087	$10,496	4%	3%
Safety & Productivity	$2,110	$2,174	3%	2%
Total	$18,016	$18,982	5%	4%

	Year Ended Sept 30,
Sales Growth by Geography
Americas	7%
Europe	(1)%
Asia, Middle East & Africa	3%

	Quarter Ended Sept 30,				Quarter Ended Sept 30,
	2025				2026
	As Reported (GAAP)		Adjusted EBITA (Non-GAAP)		As Reported (GAAP)		Adjusted EBITA (Non-GAAP)
Earnings
Control Systems & Software		$186		$298		$297		$412
Margins	16.9%		27.0%		23.8%		33.1%
Test & Measurement		(4)		116		26		141
Margins	(1.1)%		28.5%		5.6%		30.3%
Software & Systems		$182		$414		$323		$553
Margins	12.0%		27.4%		18.8%		32.3%
Sensors		317		348		339		357
Margins	27.6%		30.3%		28.5%		30.0%
Final Control		403		444		426		470
Margins	24.6%		27.2%		24.7%		27.2%
Intelligent Devices		$720		$792		$765		$827
Margins	25.8%		28.5%		26.2%		28.4%
Safety & Productivity		113		127		119		131
Margins	20.1%		22.6%		20.7%		22.9%
Corporate items and interest expense, net:
Stock compensation		$(65)		$(55)		$(57)		$(53)
Unallocated pension and postretirement costs		25		25		31		31
Pension and OPEB mark-to-market adjustment		(34)		-		2		-
Corporate and other		(89)		(34)		(110)		(81)
Interest expense, net		(92)		-		(76)		-
Pretax Earnings / Adjusted EBITA		$760		$1,269		$997		$1,408
Margins	15.6%		26.1%		19.2%		27.1%
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA				$1,333				$1,511
Margins			27.5%				29.1%

	Year Ended Sept 30,				Year Ended Sept 30,
	2025				2026
	As Reported (GAAP)		Adjusted EBITA (Non-GAAP)		As Reported (GAAP)		Adjusted EBITA (Non-GAAP)
Earnings
Control Systems & Software		$903		$1,403		$1,038		$1,467
Margins	20.8%		32.4%		22.7%		32.0%
Test & Measurement		(68)		375		47		503
Margins	(4.5)%		25.3%		2.7%		29.0%
Software & Systems		$835		$1,778		$1,085		$1,970
Margins	14.4%		30.6%		17.2%		31.2%
Sensors		1,112		1,182		1,184		1,259
Margins	26.9%		28.6%		27.5%		29.3%
Final Control		1,415		1,560		1,459		1,660
Margins	23.8%		26.2%		23.6%		26.8%
Intelligent Devices		$2,527		$2,742		$2,643		$2,919
Margins	25.1%		27.2%		25.2%		27.8%
Safety & Productivity		418		455		416		471
Margins	19.8%		21.5%		19.2%		21.7%
Corporate items and interest expense, net:
Stock compensation		(263)		(216)		(237)		(222)
Unallocated pension and postretirement costs		114		114		125		125
Pension and OPEB mark-to-market adjustment		(34)		-		2		-
Corporate and other		(455)		(175)		(211)		(209)
Interest expense, net		(237)		-		(334)		-
Pretax Earnings / Adjusted EBITA		$2,905		$4,698		$3,489		$5,054
Margins	16.1%		26.1%		18.4%		26.6%
Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA				$4,975				$5,360
Margins			27.6%				28.2%

	Quarter Ended Sept 30,		Quarter Ended Sept 30,
	2025		2026
	Amortization of Intangibles	Restructuring and Related Costs	Amortization of Intangibles	Restructuring and Related Costs
Control Systems & Software	$102	$10	$99	$16
Test & Measurement	107	13	107	8
Software & Systems	$209	$23	$206	$24
Sensors	12	19	11	7
Final Control	29	12	27	17
Intelligent Devices	$41	$31	$38	$24
Safety & Productivity	7	7	7	5
Corporate	-	20	-	10
Total	$257	$81	$251	$63
Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended September 30, 2025 and 2026, respectively.
Restructuring and related costs includes $15 and $17 of restructuring-related costs for the three months ended September 30, 2025 and 2026, respectively.

	Year Ended Sept 30,		Year Ended Sept 30,
	2025		2026
	Amortization of Intangibles	Restructuring and Related Costs	Amortization of Intangibles	Restructuring and Related Costs
Control Systems & Software	$471	$29	$402	$27
Test & Measurement	425	18	429	27
Software & Systems	$896	$47	$831	$54
Sensors	45	25	46	29
Final Control	115	30	108	93
Intelligent Devices	$160	$55	$154	$122
Safety & Productivity	27	10	28	27
Corporate	-	50	-	24
Total	$1,083	$162	$1,013	$227
Amortization of intangibles includes $199 and $197 reported in cost of sales for the twelve months ended September 30, 2025 and 2026, respectively.
Restructuring and related costs includes $26 and $40 of restructuring-related costs for the twelve months ended September 30, 2025 and 2026, respectively.

	Quarter Ended Sept 30,
	2025	2026
Depreciation and Amortization
Control Systems & Software	$125	$128
Test & Measurement	120	120
Software & Systems	245	248
Sensors	45	35
Final Control	58	57
Intelligent Devices	103	92
Safety & Productivity	19	21
Corporate	12	12
Total	$379	$373

	Year Ended Sept 30,
	2025	2026
Depreciation and Amortization
Control Systems & Software	$557	$502
Test & Measurement	476	479
Software & Systems	1,033	981
Sensors	140	136
Final Control	227	227
Intelligent Devices	367	363
Safety & Productivity	74	87
Corporate	44	47
Total	$1,518	$1,478

Table 5

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(AMOUNTS 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, the mark-to-market adjustment on pension and other postretirement plans, and certain gains, losses or impairments. These metrics are useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

	Quarter Ended Sept 30,
	2025			2026
Stock compensation (GAAP)	$(65)			$(57)
Integration-related stock compensation expense		10	1		4
Adjusted stock compensation (non-GAAP)	$(55)			$(53)

	Quarter Ended Sept 30,
	2025	2026
Corporate and other (GAAP)	$(89)	$(110)
Corporate restructuring and related costs	16	10
Acquisition/divestiture fees and related costs	39	28
IEEPA tariff refunds net of charitable trust contribution	-	(9)
Adjusted corporate and other (Non-GAAP)	$(34)	$(81)

	Quarter Ended Sept 30,
	2025	2026
Pension income (expense) (GAAP)	$(9)	$33
Pension and OPEB mark-to-market adjustment	34	(2)
Adjusted pension income (expense) (Non-GAAP)	$25	$31
Integration-related stock compensation expense relates to NI and AspenTech and includes $4 reported as restructuring costs
Pension income (expense) includes the unallocated pension and postretirement costs and the pension and OPEB mark-to market adjustment

Table 5 cont.

	Year Ended Sept 30,
	2025			2026
Stock compensation (GAAP)	$(263)			$(237)
Integration-related stock compensation expense		47	3		15	4
Adjusted stock compensation (non-GAAP)	$(216)			$(222)

	Year Ended Sept 30,
	2025		2026
Corporate and other (GAAP)	$(455)		$(211)
Corporate restructuring and related costs		25		23
Acquisition/divestiture fees and related costs	255		70
IEEPA tariff refunds net of charitable trust contribution	-		(91)
Adjusted corporate and other (Non-GAAP)	$(175)		$(209)

	Year Ended Sept 30,
	2025	2026
Pension income (expense) (GAAP)	$80	$127
Pension and OPEB mark-to-market adjustment	34	(2)
Adjusted pension income (expense) (Non-GAAP)	$114	$125
Integration-related stock compensation expense relates to NI and AspenTech and includes $25 reported as restructuring costs
Integration-related stock compensation expense relates to NI and AspenTech and includes $1 reported as restructuring costs
Pension income (expense) includes the unallocated pension and postretirement costs and the pension and OPEB mark-to market adjustment

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, the mark-to-market adjustment on pension and other postretirement plans, 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, the mark-to-market adjustment on pension and other postretirement plans, 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 Sept 30,
	2025		2026
Pretax earnings		$760		$997
Percent of sales	15.6%		19.2%
Interest expense, net		92		76
Amortization of intangibles		257		251
Restructuring and related costs		81		63
Acquisition/divestiture fees and related costs		45		32
Pension and OPEB mark-to-market adjustment		34		(2)
IEEPA tariff refunds net of charitable trust contribution		-		(9)
Adjusted EBITA		$1,269		$1,408
Percent of sales	26.1%		27.1%
	Quarter Ended Sept 30,
		2025		2026
GAAP earnings from continuing operations per share		$1.07		$1.33
Amortization of intangibles		0.35		0.34
Restructuring and related costs		0.11		0.14
Acquisition/divestiture fees and related costs		0.06		0.05
Pension and OPEB mark-to-market adjustment		0.05		(0.01)
IEEPA tariff refunds net of charitable trust contribution		-		(0.01)
Discrete taxes		(0.02)		0.02
Adjusted earnings from continuing operations per share		$1.62		$1.86

	Year Ended Sept 30,
	2025		2026
Pretax earnings		$2,905		$3,489
Percent of sales		16.1%		18.4%
Interest expense, net		237		334
Amortization of intangibles		1,083		1,013
Restructuring and related costs		162		227
Acquisition/divestiture fees and related costs		277		84
Pension and OPEB mark-to-market adjustment		34		(2)
IEEPA tariff refunds net of charitable trust contribution		-		(91)
Adjusted EBITA		$4,698		$5,054
Percent of sales	26.1%		26.6%
	Year Ended Sept 30,
		2025		2026
GAAP earnings from continuing operations per share		$3.99		$4.79
Amortization of intangibles		1.35		1.38
Restructuring and related costs		0.23		0.36
Acquisition/divestiture fees and related costs		0.33		0.14
Discrete taxes		0.06		0.05
Pension and OPEB mark-to-market adjustment		0.05		(0.01)
IEEPA tariff refunds net of charitable trust contribution		-		(0.12)
Adjusted earnings from continuing operations per share		$6.01		$6.59

Table 6 cont.

	Pretax Earnings	Income Taxes	Earnings from Cont. Ops.	Non-ControllingInterests	Net Earnings Common Stockholders	Diluted Earnings Per Share
Quarter Ended September 30, 2026
As reported (GAAP)	$997	$253	$744	$ -	$744	$1.33
Amortization of intangibles	251	59	192	-	192		0.34
Restructuring and related costs	63	(16)	79	-	79		0.14
Acquisition/divestiture fees and related costs	32	3	29	-	29		0.05
Pension and OPEB mark-to-market adjustment	(2)	1	(3)	-	(3)	(0.01)
IEEPA tariff refunds net of charitable trust contribution	(9)	(2)	(7)	-	(7)	(0.01)
Discrete taxes	-	(10)	10	-	10	0.02
Adjusted (Non-GAAP)	$1,332	$288	$1,044	$ -	$1,044	$1.86
Interest expense, net	$76
Adjusted EBITA (Non-GAAP)	$1,408
Amortization of intangibles includes $49 reported in cost of sales.
Restructuring and related costs includes $17 of restructuring-related costs.
Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in.

	Pretax Earnings	Income Taxes	Earnings from Cont. Ops.	Non-ControllingInterests	Net Earnings Common Stockholders	Diluted Earnings Per Share
Year Ended September 30, 2026
As reported (GAAP)	$3,489	$796	$2,693	$2	$2,691	$4.79
Amortization of intangibles	1,013	236	777	-	777	1.38
Restructuring and related costs	227	24	203	-	203	0.36
Acquisition/divestiture fees and related costs	84	8	76	-	76	0.14
Pension and OPEB mark-to-market adjustment	(2)	1	(3)	-	(3)	(0.01)
IEEPA tariff refunds net of charitable trust contribution	(91)	(21)	(70)	-	(70)	(0.12)
Discrete taxes	-	(28)	28	-	28	0.05
Adjusted (Non-GAAP)	$4,720	$1,016	$3,704	$2	$3,702	$6.59
Interest expense, net	334
Adjusted EBITA (Non-GAAP)	$5,054
Amortization of intangibles includes $197 reported in cost of sales.
Restructuring and related costs includes $40 of restructuring-related costs.
Non-Controlling Interests for AspenTech ceased as of March 12, 2025 with the completion of the buy-in.

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 7 for additional non-GAAP reconciliations.

Q4 FY26 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions) / Divestitures	Underlying
Control Systems & Software	14%	- %	- %	14%
Test & Measurement	14%	1%	- %	15%
Software & Systems	14%	- %	- %	14%
Sensors	4%	(1)%	- %	3%
Final Control	5%	- %	- %	5%
Intelligent Devices	5%	(1)%	- %	4%
Safety & Productivity	2%	- %	- %	2%
Emerson	7%	- %	- %	7%

Year Ended Sept 30, 2026 Underlying Sales Change	Reported	(Favorable) / Unfavorable FX	(Acquisitions) / Divestitures	Underlying
Control Systems & Software	6%	(1)%	- %	5%
Test & Measurement	17%	(2)%	- %	15%
Software & Systems	8%	(1)%	- %	7%
Sensors	4%	(1)%	- %	3%
Final Control	4%	(2)%	- %	2%
Intelligent Devices	4%	(1)%	- %	3%
Safety & Productivity	3%	(1)%	- %	2%
Emerson	5%	(1)%	- %	4%

Underlying Growth Guidance	2027 Q1 Guidance	2027 Guidance
Reported (GAAP)	~5%	~5%
(Favorable) / Unfavorable FX	-	-
(Acquisitions) / Divestitures	-	-
Underlying (non-GAAP)	~5%	~5%

2025 Q4 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Control Systems & Software	$186	16.9%	$102	$10	$298	27.0%
Test & Measurement	(4)	(1.1)%	107	13	116	28.5%
Software & Systems	$182	12.0%	$209	$23	$414	27.4%
Sensors	317	27.6%	12	19	348	30.3%
Final Control	403	24.6%	29	12	444	27.2%
Intelligent Devices	$720	25.8%	$41	$31	$792	28.5%
Safety & Productivity	$113	20.1%	$7	$7	$127	22.6%

2026 Q4 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Control Systems & Software	$297	23.8%	$99	$16	$412	33.1%
Test & Measurement	26	5.6%	107	8	141	30.3%
Software & Systems	$323	18.8%	$206	$24	$553	32.3%
Sensors	339	28.5%	11	7	357	30.0%
Final Control	426	24.7%	27	17	470	27.2%
Intelligent Devices	$765	26.2%	$38	$24	$827	28.4%
Safety & Productivity	$119	20.7%	$7	$5	$131	22.9%

Total Adjusted Segment EBITA	2025 Q4		2026 Q4
Pretax earnings (GAAP)		$760		$997
Margin	15.6%		19.2%
Corporate items and interest expense, net		255		210
Amortization of intangibles		257		251
Restructuring and related costs		61		53
Adjusted segment EBITA (non-GAAP)		$1,333		$1,511
Margin	27.5%		29.1%

2025 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Control Systems & Software	$903	20.8%	$471	$29	$1,403	32.4%
Test & Measurement	(68)	(4.5)%	425	18	375	25.3%
Software & Systems	$835	14.4%	$896	$47	$1,778	30.6%
Sensors	1,112	26.9%	45	25	1,182	28.6%
Final Control	1,415	23.8%	115	30	1,560	26.2%
Intelligent Devices	$2,527	25.1%	$160	$55	$2,742	27.2%
Safety & Productivity	$418	19.8%	$27	$10	$455	21.5%

2026 Adjusted Segment EBITA	EBIT	EBIT Margin	Amortization of Intangibles	Restructuring and Related Costs	Adjusted Segment EBITA	Adjusted Segment EBITA Margin
Control Systems & Software	$1,038	22.7%	$402	$27	$1,467	32.0%
Test & Measurement	47	2.7%	429	27	503	29.0%
Software & Systems	$1,085	17.2%	$831	$54	$1,970	31.2%
Sensors	1,184	27.5%	46	29	1,259	29.3%
Final Control	1,459	23.6%	108	93	1,660	26.8%
Intelligent Devices	$2,643	25.2%	$154	$122	$2,919	27.8%
Safety & Productivity	$416	19.2%	$28	$27	$471	21.7%

Total Adjusted Segment EBITA		2025		2026
Pretax earnings (GAAP)		$2,905		$3,489
Margin	16.1%		18.4%
Corporate items and interest expense, net		875		655
Amortization of intangibles		1,083		1,013
Restructuring and related costs		112		203
Adjusted segment EBITA (non-GAAP)		$4,975		$5,360
Margin	27.6%		28.2%

Free Cash Flow	2025 Q4	2026 Q4
Operating cash flow (GAAP)	$1,011	$1,075
Capital expenditures	(168)	(159)
Free cash flow (non-GAAP)	$843	$916

Free Cash Flow	FY25	FY26	2027E ($ in billions)
Operating cash flow (GAAP)	$3,676	$3,978	$4.3 - $4.4
Capital expenditures	(431)	(443)	~(0.5)
Free cash flow (non-GAAP)	$3,245	$3,535	$3.8 - $3.9

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

Note 2: All fiscal year 2027E figures are approximate, except where range is given.

Contacts
Investors: Carl Schumacher · (314) 553-2197
Media: Joseph Sala / Greg Klassen / Connor Murphy · Joele Frank, Wilkinson Brimmer Katcher · (212) 355-4449
(tables attached)