EMR AI Stock Analysis – Buy, Hold, or Avoid?
Emerson Electric Co. (EMR)
Fundamentals
Emerson Electric (EMR) demonstrates robust fundamentals with strong revenue growth, stable profitability, and consistent quarterly earnings beats. The company maintains a solid operating margin profile and shows resilience in navigating varying industrial cycles. While valuation is elevated, EMR's growth trajectory and operational execution reinforce its position as an industrial automation leader.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
2.93% YoY
Q1 2026
Net Income
27.42% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.6B | 4.3B | 4.9B | 4.6B | 4.4B | 4.2B | 4.6B | 4.4B |
| Revenue Growth YoY | +2.93% | +4.10% | +5.11% | +3.95% | +1.28% | +1.41% | +12.93% | +11.00% |
| Net Income | 618.0M | 605.0M | 636.0M | 586.0M | 485.0M | 585.0M | 996.0M | 329.0M |
| Net Income Growth YoY | +27.42% | +3.42% | -36.14% | +78.12% | -3.19% | +311.97% | +33.87% | -96.48% |
| EPS | $1.10 | $1.08 | $1.13 | $1.04 | $0.86 | $1.03 | $1.74 | $0.58 |
| EPS Growth YoY | +27.68% | +4.96% | -35.06% | +80.78% | -1.74% | +313.59% | +41.98% | -48.92% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 53.09% | 53.18% | 51.88% | 52.56% | 53.50% | 53.53% | 51.33% | 52.83% |
| Operating Margin | 19.75% | 19.88% | 20.23% | 19.94% | 19.38% | 18.73% | 17.10% | 18.17% |
| Net Margin | 13.55% | 13.92% | 13.10% | 12.87% | 10.94% | 14.01% | 21.56% | 7.51% |
| Return on Equity (ROE) | 3.04% | 2.98% | 3.14% | 2.95% | 2.52% | 2.86% | 4.60% | 1.58% |
| Return on Assets (ROA) | 4.13% | 4.16% | 4.44% | 3.99% | 3.43% | 3.99% | 6.33% | 1.93% |
Technical Analysis
EMR is currently in a strong bullish uptrend, confirmed by price trading above key moving averages with a golden cross in place. Momentum is neutral but stable, and the stock is in the advancing phase with signs of institutional accumulation, presenting a favorable environment for buyers.
No extreme reading
Price in downtrend
Range-bound market
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Emerson Electric (EMR) demonstrates robust fundamentals with strong revenue growth, stable profitability, and consistent quarterly earnings beats. The company maintains a solid operating margin profile and shows resilience in navigating varying industrial cycles. While valuation is elevated, EMR's growth trajectory and operational execution reinforce its position as an industrial automation leader.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$1.54
Estimated
$1.53
Surprise
+$0.01
Surprise %
+0.65%
Revenue
Actual
$4.56B
Estimated
$4.59B
Surprise
-$30.1M
Surprise %
-0.66%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.54 | $1.46 | $1.62 | $1.52 | $1.48 | $1.38 | $1.48 | $1.43 |
| EPS (Estimated) | $1.53 | $1.42 | $1.62 | $1.51 | $1.41 | $1.28 | $1.47 | $1.41 |
| EPS Surprise | +$0.01 | +$0.04 | +$0.00 | +$0.01 | +$0.07 | +$0.10 | +$0.01 | +$0.02 |
| % Diff | +0.7% | +2.8% | +0.0% | +0.7% | +5.0% | +7.8% | +0.7% | +1.4% |
| Revenue | ||||||||
| Revenue (Actual) | $4.56B | $4.35B | $4.86B | $4.55B | $4.43B | $4.18B | $4.62B | $4.38B |
| Revenue (Estimated) | $4.59B | $4.35B | $4.9B | $4.6B | $4.39B | $4.22B | $4.57B | $4.44B |
| Revenue Surprise | -$30.1M | -$1.42M | -$45.15M | -$44.85M | +$42.64M | -$42.68M | +$50.87M | -$59.43M |
| % Diff | -0.7% | -0.0% | -0.9% | -1.0% | +1.0% | -1.0% | +1.1% | -1.3% |
Valuation
Emerson Electric Co. currently holds a valuation profile reflective of a mature industrial giant with steady earnings growth and solid financial health, though its valuation multiples suggest a premium relative to traditional industrial peers. Analyst consensus leans toward a Buy with a notable upside potential around 15%. The company's consistent margins and operational strengths justify its valuation, though some caution arises from cyclical industry risks and elevated EV/EBITDA multiples.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 29.72 | 30.81 | 29.02 | 31.97 | 31.82 | 30.11 | 15.69 | 46.96 |
| Price to Sales | 16.11 | 17.16 | 15.21 | 16.46 | 13.93 | 16.88 | 13.53 | 14.11 |
| Price to Book | 3.62 | 3.67 | 3.64 | 3.77 | 3.21 | 3.44 | 2.89 | 2.97 |
| Enterprise Value to EBITDA | 66.86 | 69.39 | 60.72 | 72.93 | 67.96 | 62.18 | 52.94 | 75.71 |
| Enterprise Value to Revenue | 18.64 | 19.96 | 17.72 | 19.24 | 16.85 | 18.02 | 14.57 | 16.04 |
Sentiment & Analyst Ratings
Market sentiment for Emerson Electric (EMR) is cautiously optimistic, supported by strong Q2 2026 earnings growth, raised EPS guidance, and robust demand in key sectors like industrial software and life sciences. However, geopolitical headwinds from the Middle East conflict and some valuation concerns temper enthusiasm, creating a mixed but generally positive outlook from analysts and investors alike.
Analyst Recommendations
Risk Assessment
Emerson Electric exhibits a moderate financial risk profile characterized by tight liquidity ratios below standard benchmarks but manageable debt levels supported by solid interest coverage. The company faces typical sector challenges including competitive pressures, technological disruption risks, and geopolitical uncertainties which temper upside potential despite stable demand growth signals.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 0.87 | 0.84 | 0.88 | 0.85 | 0.80 | 1.54 | 1.77 | 1.16 |
| Quick Ratio | 0.64 | 0.62 | 0.65 | 0.63 | 0.59 | 1.17 | 1.40 | 0.86 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.66 | 0.69 | 0.68 | 0.75 | 0.77 | 0.37 | 0.39 | 0.52 |
| Debt-to-Assets | 0.32 | 0.33 | 0.33 | 0.35 | 0.35 | 0.18 | 0.19 | 0.24 |
Liquidity Assessment
Current Ratio: 0.87(Weak)
Quick Ratio: 0.64(Weak)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 0.66(Moderate)
Debt-to-Assets: 0.32(Moderate)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about EMR
AI Answers: Common Questions About EMR
Get AI-powered answers to the questions investors ask most about Emerson Electric Co.
EMR is a good buy for medium- and long-term investors, offering strong earnings growth (EPS up 18.3% YoY), high margins (gross >52%), and a leadership position in automation. While the P/E ratio is elevated at 32.71 and the price is near $141, analyst targets suggest 15% upside to $162–$168. Entry is best on pullbacks or clear breakouts above $145.
Unless your thesis has changed or you are highly risk-averse to valuation or liquidity, there is no strong reason to sell. Fundamentals remain robust, technicals are bullish, and guidance is positive; consider trimming only if the stock fails to break resistance or if liquidity deteriorates further.
The biggest risks are tight liquidity (current and quick ratios both below 1), premium valuation (P/E 32.71, high EV/EBITDA), and exposure to macro/geopolitical shocks—especially supply chain disruptions and raw material inflation. Debt is manageable (debt/equity 0.66, interest coverage ~8x), but short-term cash crunches are possible.
Technical resistance is at $145–$147 and the 52-week high of $165.15; analysts target $162–$168 over the next 12 months, implying 15% upside from current levels. Support is at $138 (50-day SMA) and $135, so downside risk is moderate if the stock breaks below these levels.
EMR is fairly valued to slightly expensive, with a P/E of 32.71 and high EV/EBITDA compared to sector averages. This premium is justified by strong margins, recurring revenue, and analyst confidence, but leaves less room for error if growth slows.
EMR is fundamentally strong—revenue and EPS are growing, gross margins are above 52%, operating margins near 20%, and free cash flow is robust. The balance sheet is solid, though liquidity ratios are tight and should be monitored.
Technical analysis is bullish: price is above all major moving averages, a golden cross is in place, and RSI is neutral (51.65), indicating room for further upside. The stock is consolidating near highs, with support at $138 and resistance at $145–$147 and $165.15.
Key catalysts include upcoming earnings reports (with potential for further beats and guidance raises), new product launches in industrial software and AI, and macro events such as easing geopolitical tensions or infrastructure spending. Watch for volume spikes and news on supply chain improvements.
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