AI Takeaway
EMR delivered modest Q1 FY2026 revenue growth of 4.1% to $4.35B, with net income rising 3.4% to $605M, though operating cash flow declined 10% and a sharp 76.6% surge in current liabilities warrants close monitoring.
Revenue
$4.35B
++4.10% YoY
EPS (Basic)
$1.08
++4.85% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
EMR grew Q1 FY2026 revenue by 4.1% year-over-year to $4.35B (from $4.18B), suggesting continued demand across its industrial automation and technology segments despite a challenging macro environment.
Source: Source: 10-Q Financial Data, Income Statement
Cost of Revenue rose 4.9% YoY to $2.04B, slightly faster than the 4.1% revenue growth, indicating modest margin compression at the gross level. SG&A expenses grew at a more controlled 1.5% to $1.24B, partially offsetting the cost pressure.
Source: Source: 10-Q Financial Data, Income Statement
Operating cash flow fell 10.0% YoY to $699M from $777M, suggesting working capital headwinds or timing differences in cash collections and payments, which investors should monitor in subsequent quarters.
Source: Source: 10-Q Financial Data, Cash Flow Statement
2 more insights available
Upgrade to unlockCurrent liabilities increased 76.6% YoY to $10.52B, resulting in a current ratio of approximately 0.84, meaning EMR's short-term assets do not fully cover its short-term obligations. This could reflect debt maturities, acquisition-related payables, or other near-term financial commitments that may pressure liquidity if not refinanced or resolved.
Source: Source: 10-Q Financial Data, Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.46 versus the $1.43 analyst consensus — a +2.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.35B | $4.17B | +4.10% |
Cost of Revenue | $2.04B | $1.94B | +4.90% |
Net Income | $605M | $585M | +3.42% |
EPS (Basic) | $1.08 | $1.03 | +4.85% |
EPS (Diluted) | $1.07 | $1.02 | +4.90% |
SG&A Expense | $1.24B | $1.22B | +1.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $41.94B | $42.61B | -1.57% |
Current Assets | $8.84B | $9.19B | -3.82% |
Current Liabilities | $10.52B | $5.96B | +76.57% |
Stockholders' Equity | $20.28B | $20.49B | -1.04% |
Long-Term Debt | $7.58B | $6.56B | +15.53% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $699M | $777M | -10.04% |
Investing Cash Flow | $-125M | $-142M | +11.97% |
Financing Cash Flow | $-364M | $-1.29B | +71.80% |
Share Buybacks | $250M | $899M | -72.19% |
D&A | $359M | $383M | -6.27% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 13.9% | — | — |
ROE | 3.0% | — | — |
ROA | 1.4% | — | — |
Current Ratio | $0.841 | — | — |
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EMR reported Q1 FY2026 revenue of $4.35B, up 4.1% year-over-year, and net income of $605M, up 3.4%. Diluted EPS came in at $1.07, a 4.9% improvement from the prior year's $1.02.
The key takeaways include steady top-line growth of 4.1%, modest net income expansion, but a concerning 76.6% surge in current liabilities that pushed the current ratio below 1.0 to 0.84. Operating cash flow also declined 10% YoY to $699M, and share buybacks were cut by 72.2% to $250M, signaling a more cautious capital allocation approach.
Based on the financial data, the most notable risks include a sharp increase in current liabilities to $10.52B (up 76.6% YoY), rising long-term debt of $7.58B (up 15.5% YoY), and declining operating cash flow. These factors collectively suggest elevated near-term balance sheet and liquidity risks.
EMR's revenue grew 4.1% year-over-year to $4.35B in Q1 FY2026, compared to $4.18B in the same period last year. This growth was achieved despite cost of revenue rising slightly faster at 4.9%, indicating modest gross margin pressure.
EMR's financial health shows a mixed picture: net income and EPS are growing modestly, but the current ratio of 0.84 (below the healthy threshold of 1.0) and a 76.6% spike in current liabilities raise short-term liquidity concerns. Long-term debt also increased 15.5% to $7.58B, and operating cash flow declined 10% to $699M, suggesting the company faces some near-term financial pressures.