Emerson Electric

EMR · NYSE · Industrials · Financials, fiscal 2016 to 2025

EMR · Last close · October 26, 2026

$161.70

Emerson Electric's revenue rose 3.0% to $18.0 billion in fiscal 2025. Its net margin was 12.7%, up from 11.2% a year earlier. Free cash flow was $2.7 billion, down 8.4%. It paid out $2.4 billion in dividends and buybacks, 88% of free cash flow. The diluted share count fell 1.3%.

EMERSON ELECTRIC CO. Latest fiscal year ended September 30, 2025 10-K filed November 10, 2025 · 0000032604-25-000087 Updated October 9, 2026

Revenue

$18.0B

3.0%

Net margin

12.7%

1.5 pts

Net income

$2.3B

16.5%

Free cash flow

$2.7B

8.4%

Return on capital

7.6%

1.5 pts

Market cap

$90.7B

Oct 26 close

P/E

35.4x

On $4.57 EPS, 4 qtrs

Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Emerson Electric does

Emerson is a technology and software company that sells automation equipment and software to manufacturers. Its customers include makers in process industries such as chemical, power and energy, hybrid industries such as life sciences, metals and mining, and food and beverage, and discrete industries. Its portfolio includes intelligent devices, control systems, and software for design and optimization.

It reports two business groups. Intelligent Devices includes Final Control, Measurement & Analytical, Discrete Automation and Safety & Productivity. Software and Control includes Control Systems & Software and Test & Measurement. By destination, the Americas were 51 percent of 2025 sales, Asia, Middle East and Africa 30 percent and Europe 19 percent.

Emerson has reshaped its mix of businesses in recent years. In March 2025 it bought the rest of AspenTech for about $7.2 billion. In 2023 it bought National Instruments and sold a majority stake in its Climate Technologies business. It says its businesses operate in highly competitive markets.

Its biggest risks, as it describes them

Needing to research, develop and market new or improved products successfully.
Failing to defend its intellectual property.
Acquisitions and divestitures that face regulatory requirements and may run into problems.
Shortages or price increases for raw materials and components.
Recessions or downturns in the end markets it serves.

From Emerson Electric's annual report on Form 10-K, filed November 10, 2025, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 5.4% a year and net income 3.8% a year, as buybacks cut the share count by 12%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Emerson Electric yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Emerson Electric's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Emerson Electric's fiscal 2025 free cash flow of $2.7B, net cash of −$11.6B at September 30, 2025 and 567 million diluted shares, from its filings. The scenarios are fitted to Emerson Electric: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 9.3% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Electrical Components & Equipment); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at September 30, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Emerson Electric's own revenue growth, as above. Cautious: growth of 4.5% then 3% a year, 2% after year 10, a 10% discount rate. Base: growth of 9.5% then 6% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 14% then 8.5% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $161.70
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Emerson Electric's earnings per share of $4.57 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 35.4×, the middle of Emerson Electric's own P/E today, its peers' median and its sector's median (Emerson Electric's own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Eaton, Vertiv, Rockwell Automation, Ametek.

Earnings growth in the years ahead (% a year) Starts at Emerson Electric's revenue growth over the last 3 years, 9.3% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $161.70
Value at this multiple, against the last close: —
Emerson Electric's P/E at the last close: 35.4×

Company	Last close	Earnings per share	P/E today
VertivVRT	$199.78	$4.42	45.2×
Rockwell AutomationROK	$429.89	$10.68	40.3×
EatonETN	$371.92	$9.83	37.8×
AmetekAME	$242.81	$6.84	35.5×
Emerson ElectricEMR	$161.70	$4.57	35.4×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	2,354	1,804	8,051	3,588	1,544
Debt incl. finance leases	6,665	10,374	8,157	7,687	13,116
Net debt (negative means net cash)	4,311	8,570	106	4,099	11,572
Net debt to EBITDA	1.6x	2.5x	0.0x	1.1x	2.5x
Debt to equity	0.7x	1.0x	0.4x	0.4x	0.7x
Interest coverage	13.0x	13.2x	15.5x	11.5x	14.3x
Current ratio	1.4x	1.1x	2.8x	1.8x	0.9x
Quick ratio	1.0x	0.9x	2.4x	1.4x	0.7x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Emerson Electric shares on the open market, and 6 insiders sold $7.9 million.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 11, 2026	Surendralal Lanca KarsanbhaiPresident & CEO, Director	Sold	9,650	$161.91	$1.6 million	Form 4
Aug 6, 2026	Michael H. TrainSVP & Chief Sustain Officer	Sold	7,329	$158.99	$1.2 million	Form 4
Jun 1, 2026	Ram R. KrishnanExecutive Vice Pres & COO	Sold	11,500	$141.22	$1.6 million	Form 4
Mar 10, 2026	Surendralal Lanca KarsanbhaiPresident & CEO, Director	Sold	5,700	$142.32	$811,224	Form 4
Feb 10, 2026	Matthew S LevatichDirector	Sold	1,476	$162.16	$239,348	Form 4
Feb 9, 2026	Nicholas J. PiazzaSenior VP & CPO	Sold	6,703	$159.07	$1.1 million	Form 4
Feb 5, 2026	Mark A BlinnDirector	Sold	2,876	$152.62	$438,934	Form 4
Dec 3, 2025	Surendralal Lanca KarsanbhaiPresident & CEO, Director	Sold	7,263	$133.00	$965,979	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Pass
Cash from operations exceeds net income	Fail	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Fail	Fail	Fail
F-score	7 of 9	6 of 9	6 of 9
Accruals ratio	32.1%	−3.1%	−1.9%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Emerson Electric side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Emerson Electric	FY25	3.0%	—	14.8%	7.6%	2.5x	6
Eaton	FY25	10.3%	—	12.9%	15.8%	1.5x	6	Compare
Vertiv	FY25	27.7%	17.9%	18.5%	30.2%	0.6x	6	Compare
Rockwell Automation	FY25	0.9%	20.4%	16.3%	20.9%	1.4x	8	Compare
Ametek	FY25	6.6%	25.8%	22.6%	13.2%	0.8x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	14,522	15,264	17,408	18,372	16,785	12,932	13,804	15,165	17,492	18,016
Revenue growth	−10.6%	5.1%	14.1%	5.5%	−8.6%	−23.0%	6.7%	9.9%	15.3%	3.0%
Gross profit	6,262	6,404	7,432	7,815	7,009	7,563	6,306	7,427	8,885	9,519
Research and development	320	340	436	454	439	347	385	523	781	771
Operating income	—	—	—	—	—	—	—	—	—	—
Net income	1,635	1,518	2,203	2,306	1,965	2,303	3,231	13,219	1,968	2,293
Diluted EPS (US$)	2.52	2.35	3.46	3.71	3.24	3.82	5.41	22.88	3.43	4.04
Diluted shares (millions)	647	643	635	621	607	602	596	577	574	567
Cash flow
Cash from operations	2,881	1,912	2,892	3,006	3,083	3,575	2,922	637	3,332	3,098
Capital expenditure	447	476	617	594	538	404	299	363	419	431
Free cash flow	2,434	1,436	2,275	2,412	2,545	3,171	2,623	274	2,913	2,667
Dividends paid	1,227	1,239	1,229	1,209	1,209	1,210	1,223	1,198	1,201	1,192
Share buybacks	601	400	1,000	1,250	942	500	500	2,000	435	1,167
Acquisitions	132	2,990	2,203	469	126	1,592	5,702	705	8,342	37
Stock-based compensation	145	110	216	120	110	197	125	250	260	263
Balance sheet at fiscal year end
Cash and short-term investments	3,281	3,062	1,093	1,494	3,315	2,354	1,804	8,051	3,588	1,544
Debt incl. finance leases	6,635	4,656	4,760	5,721	7,486	6,665	10,374	8,157	7,687	13,116
Total assets	21,732	19,589	20,390	20,497	22,882	24,715	35,672	42,746	44,246	41,964
Total liabilities	14,114	10,819	11,400	12,224	14,435	14,792	19,356	16,148	16,737	21,666
Shareholders' equity	7,568	8,718	8,947	8,233	8,405	9,883	10,364	20,689	21,636	20,282
Margins and ratios
Gross margin	43.1%	42.0%	42.7%	42.5%	41.8%	58.5%	45.7%	49.0%	50.8%	52.8%
Operating margin	—	—	—	—	—	—	—	—	—	—
Net margin	11.3%	9.9%	12.7%	12.6%	11.7%	17.8%	23.4%	87.2%	11.2%	12.7%
Free cash flow margin	16.8%	9.4%	13.1%	13.1%	15.2%	24.5%	19.0%	1.8%	16.6%	14.8%
Return on capital	15.5%	17.0%	20.7%	19.8%	16.9%	11.4%	10.4%	9.4%	6.0%	7.6%
Return on equity	20.9%	18.6%	24.9%	26.9%	23.6%	25.2%	31.9%	85.1%	9.3%	10.9%
Return on assets	7.5%	7.3%	11.0%	11.3%	9.1%	9.7%	10.7%	33.7%	4.5%	5.3%
Net debt to EBITDA	1.1x	0.5x	1.0x	1.1x	1.2x	1.6x	2.5x	0.0x	1.1x	2.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Emerson Electric's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Emerson Electric.