Emerson Gears Up to Post Q3 Earnings: Here's What to Expect

Emerson Electric Co. EMR is likely to witness earnings and revenue growth when it reports third-quarter fiscal 2026 (ended June 2026) results on Aug. 4, after market close. The Zacks Consensus Estimate for revenues is pegged at $4.79 billion, indicating growth of 5.3% from the prior-year quarter's figure.

The consensus mark for earnings is pinned at $1.68 per share, which has remained steady in the past 60 days. The figure indicates a jump of 10.5% from the prior-year figure. The company's bottom line matched the Zacks Consensus Estimate in the last reported quarter. EMR beat on earnings in two of the trailing four quarters and matched the mark in the other two, delivering an average surprise of 1.1%.

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 Intelligent Devices and Software and Systems groups is likely to have driven its performance in the fiscal third quarter. Solid momentum in the final control segment, driven by strength in power and LNG end markets, is likely to have benefited the top-line performance of its Intelligent Devices group in the fiscal third quarter. Robust growth across the Americas within the Sensors segment is also likely to aid the Intelligent Devices group's results. For the fiscal third quarter, the Zacks Consensus Estimate for the group's total sales is pegged at $2.64 billion, up 5.2% sequentially.

Solid momentum in the Control Systems & Software segment, supported by strength in the power and life sciences end markets, is likely to have augmented the performance of the Software & Systems group. Also, strength in the aerospace & defense and semiconductor end markets has been aiding the Test & Measurement segment. For the fiscal third quarter, the consensus estimate for the group's total sales is pegged at $1.59 billion, indicating a 6% rise from the previous quarter's number.

Robust growth across the Americas region is expected to have augmented the Safety & Productivity segment's performance in the to-be-reported quarter.

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.

Story Continues

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 -1.21% as the Zacks Consensus Estimate is pegged at $1.68 per share, higher than the Most Accurate Estimate of $1.66. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Zacks Rank: EMR currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Ferguson Enterprises Inc. FERG has an Earnings ESP of +1.22% and a Zacks Rank of 2 at present. The company is slated to release second-quarter 2026 results on Aug. 10.

Ferguson's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.

Xometry, Inc. XMTR has an Earnings ESP of +66.67% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on Aug. 4.

Xometry's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the mark in one, the average surprise being 46.1%.

Ball Corporation BALL has an Earnings ESP of +0.98% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on Aug. 4.

Ball Corp.'s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while matching the mark in one, the average surprise being 3.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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