Top-Line Growth Maintained
Revenue rose 7% year-over-year to $4.87B, with cost of revenue growing only 2.7%, indicating favorable pricing or volume leverage.
Source: 10-Q Income Statement (XBRL)
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
EMR's fiscal third quarter of 2026 was defined by a noticeable divergence between moderate revenue growth and strong net income expansion, as cost discipline drove significant margin improvement. While revenue continued to climb, net income surged at a multiple of that growth rate, reflecting lower cost of revenue increases and contained operating expenses. However, the period also revealed persistent liquidity tightness, with current liabilities exceeding current assets, though operating cash flow generation remained robust and supported debt reduction.
Revenue
$4.87B
+7.03% YoY
EPS (Diluted)
$1.28
+23.08% YoY
Source: SEC XBRL
Emerson Electric (EMR) reported Q3 FY2026 revenue of $4.87B, up 7.0% year over year. EMR's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.54 | 1.55 | Miss -0.7% |
| Dec 2025 | 1.46 | 1.43 | Beat +2.4% |
| Sep 2025 | 1.62 | 1.63 | Miss -0.8% |
| Jun 2025 | 1.52 | 1.53 | Miss -0.4% |
Compiled by AI from this SEC filing
Revenue rose 7% year-over-year to $4.87B, with cost of revenue growing only 2.7%, indicating favorable pricing or volume leverage.
Source: 10-Q Income Statement (XBRL)
Net income jumped 22.5% to $718M, far outpacing revenue growth, as SG&A expenses were managed with a 6.1% increase.
Source: 10-Q Income Statement (XBRL)
Year-to-date operating cash flow reached $2.9B, a 39% increase from the prior-year period, supporting strategic capital allocation.
Source: 10-Q Cash Flow Statement (XBRL)
Long-term debt decreased by 9.1% to $7.53B, improving the debt-to-equity ratio and reducing interest burden.
Source: 10-Q Balance Sheet (XBRL)
Share buybacks totaled $898M year-to-date, down 21.7% from the prior year, freeing cash for deleveraging.
Source: 10-Q Cash Flow Statement (XBRL)
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
A current ratio of 0.90 indicates that short-term obligations exceed liquid assets, posing a risk of meeting near-term commitments if cash flow weakens.
Source: 10-Q Balance Sheet (XBRL)
Despite recent reductions, long-term debt of $7.53B remains substantial, exposing the company to refinancing risk and interest rate sensitivity.
Source: 10-Q Balance Sheet (XBRL)
Net income growth has relied heavily on containing costs; any unexpected increase in input prices or operating expenses could quickly erode profitability.
Source: 10-Q Income Statement (XBRL)
While top-line growth was steady, the company’s revenue may face headwinds from economic cycles or competitive dynamics, potentially impacting future earnings.
Source: 10-Q Income Statement (XBRL)
Strong free cash flow has been essential for debt reduction and buybacks; a downturn in working capital or higher capital spending could constrain shareholder returns.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.87 $B | 4.55 $B | +7.03% |
Cost of Revenue $B | 2.22 $B | 2.16 $B | +2.69% |
Net Income $M | 718.00 $M | 586.00 $M | +22.53% |
EPS (Basic) $ | 1.28 $ | 1.04 $ | +23.08% |
EPS (Diluted) $ | 1.28 $ | 1.04 $ | +23.08% |
SG&A Expense $B | 1.34 $B | 1.27 $B | +6.08% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
EMR delivered solid Q2 FY2026 results with revenue growing 2.9% YoY to $4.56B and net income surging 27.4% YoY to $618M, supported by strong operating cash flow generation and continued debt reduction.
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.
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