Emerson Electric Co. EMR is likely to witness earnings and revenue growth when it reports second-quarter fiscal 2026 (ended March 31, 2026) results on May 5, after market close. The Zacks Consensus Estimate for revenues is pegged at $4.60 billion, indicating growth of 3.7% from the prior-year quarter’s figure.
The consensus mark for earnings is pinned at $1.54 per share, which has remained steady in the past 60 days. The figure indicates a jump of 4.1% from the prior-year figure. The company’s bottom line beat the Zacks Consensus Estimate by 3.6% in the last reported quarter. EMR beat on earnings in three of the trailing four quarters and matched the mark in one, delivering an average surprise of 2.1%.
Let’s see how things have shaped up for Emerson prior to the announcement.
Factors Likely to Have Shaped EMR’s Quarterly Performance
Strength across Emerson’s final control business, driven by solid momentum in the power end markets, is likely to have benefited the top-line performance of its Intelligent Devices segment in the fiscal first quarter. Solid momentum in the Sensors segment, aided by a solid demand environment across Europe, is also likely to aid the segment’s results. For the fiscal second quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $2.57 billion.
Solid momentum in the Control Systems & Software business, supported by strength in the AspenTech business and power, semiconductor and life sciences end markets, is likely to have augmented the performance of the Software & Systems segment. Also, strength in the aerospace & defense and semiconductor end markets has been aiding the Test & Measurement business. For the fiscal second quarter, the consensus estimate for the segment’s total sales is pegged at $1.49 billion, indicating a 4.9% rise from the year-ago reported number.
Solid momentum in the electrical products business and stable project activity in North America are expected to have augmented the Safety & Productivity segment’s performance.
The company has remained focused on expanding its product offerings and market presence through buyouts. In March 2025, Emerson acquired the remaining shares of AspenTech, making it a wholly owned subsidiary. This move strengthened the company’s automation portfolio and enhanced its software-defined control capabilities. The buyout is expected to have boosted EMR’s top line in the quarter.
However, rising costs and expenses owing to higher input costs and restructuring-related actions are likely to have affected EMR’s margin performance. Also, given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Emerson Electric Co. Price and EPS Surprise
Emerson Electric Co. price-eps-surprise | Emerson Electric Co. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Emerson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: EMR has an Earnings ESP of -0.51% as the Zacks Consensus Estimate is pegged at $1.54 per share, higher than the Most Accurate Estimate of $1.53. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: EMR currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
RBC Bearings RBC has an Earnings ESP of +5.80% and a Zacks Rank of 2 at present. The company is slated to release first-quarter 2026 results on May 15.
RBC Bearings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.3%.
Johnson Controls International JCI has an Earnings ESP of +0.17% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter fiscal 2026 results on May 6.
Johnson Controls’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.9%.
Kennametal Inc. KMT has an Earnings ESP of +5.88% and a Zacks Rank of 1 at present. The company is slated to release second-quarter 2026 results on May 6.
Kennametal’s earnings surpassed the Zacks Consensus Estimate thrice and missed once in the trailing four quarters, the average surprise being 35.4%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
