Emerson Raises Dividend 7% and Plans $2.5 Billion of Buybacks as Q4 Underlying Orders Jump 14%

Emerson raised its quarterly dividend 7% and laid out a fiscal 2027 plan that includes $2.5 billion of share repurchases after fourth-quarter underlying orders jumped 14%, according to its 8-K released Wednesday.

The automation company's net sales rose 7% to $5.201 billion in the quarter ended Sept. 30, with underlying sales up 7%. GAAP EPS increased 24% to $1.33, and adjusted EPS rose 15% to $1.86. Adjusted segment EBITA margin widened 160 basis points to 29.1%.

Strong finish to the year

For fiscal 2026, net sales grew 5% to $18.982 billion, GAAP EPS rose 20% to $4.79 and adjusted EPS increased 10% to $6.59. Free cash flow climbed 9% to $3.535 billion.

"Underlying orders were up 14%, supported by exceptional long-cycle project activity in our growth verticals," said President and CEO Lal Karsanbhai. He said demand was broad-based across all business groups and regions.

Software & Systems led the margin gains, with adjusted segment EBITA margin rising to 32.3% from 27.4% a year earlier.

2027 outlook

Emerson said its 2027 guidance figures are approximate. The company estimates 5% net and underlying sales growth for fiscal 2027, GAAP EPS of $5.70 and adjusted EPS of $7.25. It expects operating cash flow of $4.3 billion to $4.4 billion and free cash flow of $3.8 billion to $3.9 billion.

For the first quarter, Emerson guided to adjusted EPS of $1.58 to $1.62 and GAAP EPS of $1.19 to $1.23.

The plan assumes returning an estimated $3.8 billion to shareholders, the company said, through $2.5 billion of buybacks and $1.3 billion of dividends.

Dividend

The quarterly dividend rises to $0.595 per share, payable Dec. 10, 2026, to holders of record on Nov. 13.

By the numbers

• Q4 net sales: $5.201 billion, up 7%
• Q4 adjusted EPS: $1.86, up 15%
• FY2026 adjusted EPS: $6.59, up 10%
• FY2027 adjusted EPS estimate: $7.25
• Quarterly dividend: $0.595, up 7%

Sources

1. Emerson Form 8-K with fiscal fourth-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0000032604-26-000049)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.