Emerson forecast about 5% growth in net and underlying sales for fiscal 2027 after underlying orders advanced 14%, while outlining nearly $3.8 billion in planned shareholder returns.
The three months ended Sept. 30 were the fourth quarter of fiscal 2026. Net sales reached $5.201 billion, up 7% from a year earlier, and underlying sales also grew 7%. Emerson's underlying-sales calculation excludes currency translation and significant acquisitions and divestitures; its underlying-orders figure excludes AspenTech.
Emerson President and Chief Executive Officer Lal Karsanbhai said projects in growth sectors helped support the order increase. He described demand as broad across business groups and regions.
Fourth-quarter earnings per share under generally accepted accounting principles rose 24% to $1.33. Adjusted earnings per share increased 15% to $1.86. Adjusted segment EBITA was $1.511 billion, with its margin up 160 basis points to 29.1%.
The Associated Press reported that a Zacks survey of seven analysts put the average estimate for adjusted earnings at $1.85 per share, below Emerson's $1.86 result. AP also reported that revenue topped a $5.12 billion estimate from five analysts.
For fiscal 2026, net sales totaled $18.982 billion, up 5%, while underlying sales grew 4%. GAAP earnings per share reached $4.79, an increase of 20%, and adjusted earnings per share rose 10% to $6.59. Free cash flow was $3.535 billion, 9% higher than a year earlier.
For fiscal 2027, Emerson expects net and underlying sales to each grow about 5%. Its outlook puts GAAP earnings per share near $5.70 and adjusted earnings per share around $7.25, with operating cash flow of $4.3 billion to $4.4 billion and free cash flow of $3.8 billion to $3.9 billion. First-quarter guidance calls for GAAP earnings per share of $1.19 to $1.23 and adjusted earnings per share of $1.58 to $1.62.
The capital-return plan assumes about $2.5 billion in share repurchases and $1.3 billion in dividends. Emerson raised its quarterly dividend 7% to $0.595 per share, payable Dec. 10 to shareholders of record Nov. 13.
