What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2026-02-03 · 357 added, 124 removed, 498 unchanged (49% of the section changed)

3 unchanged sentences

& SUBSIDIARIES

Three months ended December 31, 2024 and 2025

Three and six months ended March 31, 2025 and 2026

(Dollars in millions, except per share amounts;

Three Months Ended

March 31, Six Months Ended

2025 2026 2025 2026

Net sales $ 4,432 4,562 $ 8,608 8,908

18 unchanged sentences

& SUBSIDIARIES

Three months ended December 31, 2024 and 2025

Three and six months ended March 31, 2025 and 2026

(Dollars in millions;

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2026 2025 2026

Net earnings $ 430 618 $ 1,022 1,224

12 unchanged sentences

(Dollars and shares in millions, except per share amounts;

Sept 30, 2025 Dec 31, 2025

Sept 30, 2025 Mar 31, 2026

Current assets

35 unchanged sentences

& SUBSIDIARIES

Three months ended December 31, 2024 and 2025

Three and six months ended March 31, 2025 and 2026

(Dollars in millions;

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2026 2025 2026

Common stock $ 477 477 $ 477 477

2 unchanged sentences

Stock plans 42 48 ( 14 ) ( 44 )

Purchase of noncontrolling interest ( 1,400 ) — ( 1,400 ) —

Settlement of AspenTech share awards ( 76 ) — ( 76 ) —

Reclass negative APIC to retained earnings 1,321 — 1,321 23

22 unchanged sentences

Beginning balance 5,889 15 5,873 16

Net earnings 8 1

Net earnings (loss) ( 55 ) — ( 48 ) 1

Stock plans 14 — 30 —

Dividends paid ( 1 ) — ( 1 ) ( 1 )

Purchase of noncontrolling interest ( 5,832 ) — ( 5,832 ) —

Other comprehensive income 2 1 ( 5 ) —

5 unchanged sentences

& SUBSIDIARIES

Three Months Ended December 31, 2024 and 2025

Six Months Ended March 31, 2025 and 2026

(Dollars in millions;

Three Months Ended

Six Months Ended

Operating activities

5 unchanged sentences

Other, net ( 110 ) 26

Cash from continuing operations 1,603 1,478

Cash from discontinued operations ( 585 ) —

Cash provided by operating activities 1,018 1,478

5 unchanged sentences

Financing activities

Net increase (decrease) in short-term borrowings 2 ( 485 )

Net increase in short-term borrowings 2,628 2,027

Proceeds from short-term borrowings greater than three months 2,496 4,447

Payments of short-term borrowings greater than three months — ( 2,099 )

Payments on short-term borrowings greater than three months — ( 5,611 )

Proceeds from long-term debt 1,544 —

Payments of long-term debt ( 2 ) ( 587 )

1 unchanged sentence

Purchases of common stock ( 1,122 ) ( 542 )

Purchase of noncontrolling interest ( 7,171 ) —

Settlement of AspenTech share awards ( 76 ) —

Other, net ( 81 ) ( 123 )

35 unchanged sentences

The following table summarizes the balances of the Company's unbilled receivables (contract assets), which are reported in Other assets (current and noncurrent), and its customer advances (contract liabilities), which are reported in Accrued expenses and Other liabilities.

Sept 30, 2025 Dec 31, 2025

Sept 30, 2025 Mar 31, 2026

Unbilled receivables (contract assets) $ 1,891 1,909

Customer advances (contract liabilities) ( 1,105 ) ( 1,269 )

Net contract assets (liabilities) $ 786 729

Net contract assets $ 786 640

The majority of the Company's contract balances relate to (1) arrangements where revenue is recognized over time and payments from customers are made according to a contractual billing schedule, and (2) revenue from term software license arrangements where the license revenue is recognized upfront upon delivery.

Revenue recognized for the three months ended December 31, 2025 included $ 428 that was included in the beginning contract liability balance.

The decrease in net contract assets was due to customer billings exceeding revenue recognized for performance completed during the period.

Revenue recognized for the three and six months ended March 31, 2026 included $ 162 and $ 590 , respectively, that was included in the beginning contract liability balance.

Other factors that impacted the change in net contract assets were immaterial.

Revenue recognized for the three months ended December 31, 2025 for performance obligations that were satisfied in previous periods, including cumulative catchup adjustments on the Company's long- term contracts, was immaterial.

As of December 31, 2025, the Company's backlog relating to unsatisfied (or partially unsatisfied) performance obligations in contracts with its customers was approximately $ 9.2 billion .

Revenue recognized for the three and six months ended March 31, 2026 for performance obligations that were satisfied in previous periods, including cumulative catchup adjustments on the Company's long- term contracts, was immaterial.

As of March 31, 2026, the Company's backlog relating to unsatisfied (or partially unsatisfied) performance obligations in contracts with its customers was approximately $ 9.5 billion .

The Company expects to recognize appro ximately 75 percent of its remaining performance obligations as revenue over the next 12 months, with the remainder substantially over the following two years .

1 unchanged sentence

Reconciliations of weighted-average shares for basic and diluted earnings per common share follow.

Diluted earnings per share are calculated using the two-class method.

Earnings allocated to participating securities were inconsequential.

Three Months Ended

March 31, Six Months Ended

2025 2026 2025 2026

Basic shares outstanding 563.0 560.8 565.7 561.2

4 unchanged sentences

Emerson also incurred fees of $ 76 ($ 65 after-tax) and paid $ 76 to settle certain AspenTech share-based awards that were outstanding prior to the transaction closing.

The purchase of the remaining outstanding shares and related costs were reported as an adjustment to Equity in 2025.

Separately, AspenTech incurred $ 127 ($ 113 after-tax) of deal-related fees which were reported as acquisition/divestiture costs in Other deductions, net in 2025.

The purchase of the remaining outstanding shares and related costs are reported as an adjustment to Equity in 2025.

Separately, AspenTech incurred $ 127 ($ 113 after-tax) of deal-related fees which are reported as acquisition/divestiture costs in Other deductions, net in 2025.

AspenTech is now reported as a part of the Control Systems & Software segment in the Software & Systems business group, see Note 15.

2 unchanged sentences

The Company recognized goodwill of $ 32 ( none of which is expected to be tax deductible) and other identifiable intangible assets of $ 20 , consisting of developed technology and customer relationships with a weighted-average useful life of approximately 5 years.

(5) DISCONTINUED OPERATIONS

On May 31, 2023, the Company completed the sale of a majority stake in its Climate Technologies business to private equity funds managed by Blackstone .

As a part of this transaction, Emerson retained a 40 percent non-controlling common equity interest in a new standalone joint venture between Emerson and Blackstone named Copeland.

Subsequently, in August of 2024, the Company sold its 40 percent non-controlling common equity interest in Copeland to private equity funds managed by Blackstone for $ 1.5 billion.

Cash from discontinued operating activities of $ 585 for t he six months ended March 31, 2025 represents income taxes paid related to the sale of the Company's 40 percent non-controlling common equity interest in Copeland.

(6) PENSION & POSTRETIREMENT PLANS

Total periodic pension and postretirement (income) expense is summarized below:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2026 2025 2026

Service cost $ 18 19 $ 36 38

7 unchanged sentences

Three Months Ended

March 31, Six Months Ended

2025 2026 2025 2026

Amortization of intangibles (intellectual property and customer relationships) $ 229 205 $ 457 409

Restructuring costs 21 45 32 53

Acquisition/divestiture costs 13 1

Acquisition/divestiture fees and related costs 144 1 157 2

Foreign currency transaction (gains) losses 41 19 42 32

1 unchanged sentence

Total $ 418 229 $ 646 434

For the three months ended December 31, 2025, the decrease in intangibles amortization was largely due to backlog amortization of $ 26 in the prior year related to the AspenTech acquisition.

Other is composed of several items, including pension expense, litigation costs, provision for bad debt and other items, none of which is individually significant.

For the three and six months ended March 31, 2026, the decreases in acquisition/divestiture costs and intangibles amortization are primarily related to the AspenTech transaction, including backlog amortization of $ 26 and $ 52 , respectively, in the prior year.

Other is composed of several items, including a portion of pension expense (income), litigation costs, provision for bad debt and other items, none of which is individually significant.

(8) RESTRUCTURING COSTS

Restructuring expense reflects costs associated with the Company’s ongoing efforts to improve operational efficiency and deploy assets globally in order to remain competitive on a worldwide basis.

The Company expects fiscal 2026 restructuring expense and related costs to be approximately $ 100 , including costs to complete actions initiated in the first three months of the year.

The Company expects fiscal 2026 restructuring expense and related costs to be approximatel y $ 130 , including costs to complete actions initiated in the first six months of the year.

Restructuring expense by business segment follows:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended

2025 2026 2025 2026

Control Systems & Software $ 8 4 $ 11 5

1 unchanged sentence

Software & Systems 12 6 14 7

Sensors 2 8 3 13

Final Control 3 25 10 27

2 unchanged sentences

Corporate 2 3 3 2

Details of the change in the liability for restructuring costs during the three months ended December 31, 2025 follow:

Sept 30, 2025 Expense Utilized/Paid Dec 31, 2025

Total $ 21 45 $ 32 53

Details of the change in the liability for restructuring costs during the six months ended March 31, 2026 follow:

Sept 30, 2025 Expense Utilized/Paid Mar 31, 2026

Severance and benefits $ 116 46 57 105

1 unchanged sentence

Total $ 120 53 66 107

The tables above do not includ e $ 2 a nd $ 2 of costs related to restructuring actions incurred for the three months ended December 31, 2025 and 2024, respectively.

Income taxes were $ 169 in the first quarter of fiscal 2026 and $ 182 in 2025, resulting in effective tax rates of 22 percent and 24 percent, respectively.

In the current year, the One Big Beautiful Bill Act (the "OBBBA") increased the effective tax rate by approximately 1 percentage point due to a lower tax deduction for foreign derived intangible income from the change to domestic research and development in fiscal 2026.

Excluding the impact related to the OBBBA, the lower rate in the current year reflected favorable tax items compared to unfavorable items in the prior year.

The tables above do not include $ 8 and $ 6 of costs related to restructuring actions incurred for the three months ended March 31, 2026 and 2025, respectively, that are required to be reported in cost of sales and selling, general and administrative expenses;

year-to-date amounts are $ 11 and $ 8 , respectively .

Income taxes were $ 175 in the second quarter of fiscal 2026 and $ 199 in 2025, resulting in effective tax rates of 22 percent and 32 percent, respectively.

In the current year, the One Big Beautiful Bill Act (the "OBBBA") increased the effective tax rate by approxima tely 1 per centage point due to a lower tax deduction for foreign derived intangible income from the change to domestic research and development in fiscal 2026.

Excluding the impact related to the OBBBA, the lower rate in the current year reflected favorable tax items that reduced the rate by approximately 2 percentage points.

The prior year rate was negatively impacted by $ 49 ($ 0.09 per share) of discrete tax items related to the AspenTech transaction.

In addition, the fees incurred by AspenTech were not fully deductible.

In total, the net impact of these items increased the rate by approximately 10 percentage points.

Income taxes were $ 344 in the first six months of fiscal 2026 and $ 382 in 2025 , resulting in effective tax rates of 22 percent and 27 percent, respectively.

The current year rate was negatively impacted by approximately 1 percent due to the OBBBA impact discussed above.

Excluding the impact related to the OBBBA, the lower rate in the current year reflected favorable tax items that reduced the rate by approximately 2 percentage points.

The prior year items discussed above increased the prior year rate by approximately 5 percentage points.

(10) OTHER FINANCIAL INFORMATION

Sept 30, 2025 Dec 31, 2025

Sept 30, 2025 Mar 31, 2026

Finished products $ 520 596

14 unchanged sentences

Total $ 18,193 18,153

Sept 30, 2025 Mar 31, 2026

Other intangible assets

2 unchanged sentences

Net carrying amount $ 9,458 8,954

Other intangible assets include customer relationships, net, of $ 5,657 and $ 5,801 and intellectual property, net, of $ 3,292 and $ 3,411 as of December 31, 2025 and September 30, 2025, respectively.

Three Months Ended December 31,

Depreciation and amortization expense includes the following:

Other intangible assets include customer relationships, net, of $ 5,518 and $ 5,801 and intellectual property, net, of $ 3,172 and $ 3,411 as of March 31, 2026 and September 30, 2025, respectively.

Three Months Ended March 31, Six Months Ended March 31,

2025 2026 2025 2026

Depreciation and amortization expense include the following:

Depreciation expense $ 83 87 $ 166 171

Amortization of intangibles (includes $ 49 , $ 49 , $ 99 and $ 98 reported in Cost of Sales, respectively)

278 254 556 508

Amortization of capitalized software 23 28 45 49

Total $ 384 369 $ 767 728

Sept 30, 2025 Dec 31, 2025

Items reported in other noncurrent assets include the following:

Sept 30, 2025 Mar 31, 2026

Other assets include the following:

Pension assets $ 1,229 1,266

3 unchanged sentences

Asbestos-related insurance receivables 55 50

Items reported in accrued expenses include the following:

Accrued expenses include the following:

Customer advances (contract liabilities) $ 1,031 1,175

3 unchanged sentences

Product warranty 90 79

Items reported in other liabilities include the following:

Sept 30, 2025 Mar 31, 2026

Other liabilities include the following:

Deferred income taxes $ 1,822 1,745

2 unchanged sentences

Asbestos litigation 131 122

On February 10, 2026, the Company entered into a $ 2 billion 364-day revolving backup credit facility to support commercial paper borrowings.

This facility replaces the Company's $ 3 billion 364-day revolving backup credit facility entered into on February 11, 2025, which expired by its terms.

This facility is in addition to the Company's existing $ 3.5 billion five-year revolving backup credit facility with various banks, which was entered into in February 2023.

Both credit facilities are unsecured and may be accessed under various interest rate alternatives at the Company's option.

The fees to maintain the facilities are immaterial and the Company has not incurred any borrowings under either facility or previous facilities.

In March 2025, the Company issued € 500 of 3.0 % notes due March 2031, $ 500 of 5.0 % notes due March 2035, and € 500 of 3.5 % notes due March 2037.

The Company used the net proceeds from the sale of the notes and increased commercial paper borrowings, along with cash on hand, to fund the AspenTech transaction ( see Note 4 ).

(12) FINANCIAL INSTRUMENTS

Hedging Activities – As of December 31, 2025, the notional amount of foreign currency hedge positions was approximately $ 4.2 billion.

Hedging Activities – As of March 31, 2026, the notional amount of foreign currency hedge positions was approximately $ 4.3 billion.

All derivatives receiving hedge accounting are cash flow hedges.

The majority of hedging gains and losses deferred as of December 31, 2025 are expected to be recognized over the next 12 months as the underlying forecasted transactions occur.

The majority of hedging gains and losses deferred as of March 31, 2026 are expected to be recognized over the next 12 months as the underl ying forecasted transactions occur.

Gains and losses on foreign currency derivatives reported in Other deductions, net reflect hedges of balance sheet exposures that do not receive hedge accounting.

1 unchanged sentence

Net Investment Hedge – In fiscal 2019, the Company issued euro-denominated debt of € 1.5 billion, of which € 500 was repaid in 2024.

During the quarter, the Company repaid an additional € 500 of 1.25 % euro notes that matured in October 2025.

During the current year, the Company repaid an additional € 500 of 1.25 % euro notes that matured in October 2025.

In fiscal 2025, the Company issued € 500 of 3.0 % notes due March 2031 and € 500 of 3.5 % notes due March 2037.

2 unchanged sentences

Cash flows related to the euro-denominated debt are classified within financing cash flows.

The following gains and losses are included in earnings and other comprehensive income (OCI) for the three months ended December 31, 2025 and 2024:

Three Months Ended

The following gains and losses are included in earnings and other comprehensive income (OCI) for the three and six months ended March 31, 2025 and 2026:

Into Earnings Into OCI

2nd Quarter Six Months 2nd Quarter Six Months

Gains (Losses) Location 2025 2026 2025 2026 2025 2026 2025 2026

Foreign currency

$ 2 2 3 3 — 3 11 7

Foreign currency

Cost of sales

— 7 — 12 2 5 5 17

Foreign currency

Other deductions, net

18 — ( 33 ) ( 9 )

Net Investment Hedges

3 unchanged sentences

The amounts ultimately recognized will differ from those presented above for open positions, which remain subject to ongoing market price fluctuations until settlement.

Derivatives receiving hedge accounting are highly effective and no amounts were excluded from the as sessment of hedge effectiveness.

Derivatives receiving hedge accounting are highly effective and no amounts were excluded from the assessment of hedge effectiveness.

Fair Value Measurement – Valuations for all derivatives and the Company's long-term debt fall within Level 2 of the GAAP valuation hierarchy.

As of December 31, 2025, the fair value of long-term debt was approximately $ 7.6 billion, which was lower than the carrying value by $ 694 .

As of March 31, 2026, the fair value of long-term debt was approximately $ 7.5 billion, which was lower than the carrying value by $ 798 .

The fair value of foreign currency contracts, which are reported in Other current assets and Accrued expenses, did not materially change since September 30, 2025.

4 unchanged sentences

The Company also can demand full collateralization of derivatives in net asset positions should any counterparty credit ratings fall below certain thresholds.

No collateral was posted with counterparties and none was held by the Company as of December 31, 2025.

No collateral was posted with counterparties and none was held by the Company as of March 31, 2026.

(13) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Activity in Accumulated other comprehensive income (loss) for the three months ended December 31, 2025 and 2024 is shown below, net of income taxes:

Three Months Ended December 31,

Activity in Accumulated other comprehensive income (loss) for the three and six months ended March 31, 2026 and 2025 is shown below, net of income taxes:

Three Months Ended March 31, Six Months Ended March 31,

2025 2026 2025 2026

Foreign currency translation

2 unchanged sentences

184 ( 36 ) ( 301 ) ( 55 )

Purchase of noncontrolling interest 3 — 3 —

Ending balance ( 914 ) ( 620 ) ( 914 ) ( 620 )

7 unchanged sentences

Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $ 1 , $ 2 , $ 1 and $ 4 , respectively

( 1 ) ( 7 ) ( 2 ) ( 11 )

Ending balance 3 20 3 20

30 unchanged sentences

The segment provides a comprehensive range of mechanical, electrical and diagnostic solutions to support critical infrastructure, promote safety and drive productivity across construction, maintenance and industrial environments.

Recently expanded to include the electrical equipment and materials joining businesses from the former Discrete Automation segment, Safety & Productivity combines rugged performance with intelligent design and advanced connectivity.

This segment also now includes the electrical equipment and materials joining businesses from the former Discrete Automation segment.

Summarized information about the Company's results of operations by business segment follows:

Three Months Ended December 31,

Three Months Ended March 31,

Control Systems & Software Test & Measurement Software & Systems Sensors Final Control Intelligent Devices Safety & Productivity

4 unchanged sentences

Earnings (Loss) $ 238 ( 24 ) 214 266 355 621 105

Three Months Ended December 31,

Three Months Ended March 31,

Control Systems & Software Test & Measurement Software & Systems Sensors Final Control Intelligent Devices Safety & Productivity

4 unchanged sentences

Earnings (Loss) $ 224 ( 5 ) 219 276 353 629 109

Six Months Ended March 31,

Control Systems & Software Test & Measurement Software & Systems Sensors Final Control Intelligent Devices Safety & Productivity

Net Sales $ 2,116 717 2,833 1,972 2,793 4,765 1,010

Cost of sales 931 181 1,112 860 1,459 2,319 567

Selling, general and administrative expenses 561 358 919 533 606 1,139 226

Other deductions, net 180 215 395 27 68 95 15

Earnings (Loss) $ 444 ( 37 ) 407 552 660 1,212 202

Six Months Ended March 31,

Control Systems & Software Test & Measurement Software & Systems Sensors Final Control Intelligent Devices Safety & Productivity

Net Sales $ 2,133 823 2,956 2,020 2,882 4,902 1,050

Cost of sales 986 213 1,199 891 1,492 2,383 593

Selling, general and administrative expenses 574 381 955 549 621 1,170 234

Other deductions, net 117 219 336 38 84 122 19

Earnings (Loss) $ 456 10 466 542 685 1,227 204

The following table reconciles the total segment results from the tables above to the Company's consolidated results.

Earnings (Loss)

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2026 2025 2026

Segment Totals $ 940 957 $ 1,821 1,897

5 unchanged sentences

Total $ 629 793 $ 1,404 1,568

Stock compensation for the three months ended December 31, 2025 included $ 4 of integration-related stock compensation expense.

Corporate and other for the three months ended December 31, 2025 included acquisition/divestiture fees and related costs of $ 7 compared to $ 22 in the prior year.

S tock compensation for the three and six months ended March 31, 2026 included integration-related stock compensation expense of $ 4 and $ 9 , respectively (of which $ 1 was reported as restructuring costs for the six months ended March 31, 2026);

prior year amounts were $ 9 and $ 11 , respectively (of which $ 1 was reported as restructuring costs).

Corporate and other for the three and six months ended March 31, 2026 included acquisition/divestiture fees and related costs of $ 7 and $ 14 , respectively;

prior year amounts were $ 160 and $ 179 , respectively.

Additional segment financial information is presented in the tables below:

Total Assets Depreciation and Amortization

As of December 31, Three Months Ended December 31,

30, As of March 31, Three Months Ended March 31, Six Months Ended March 31,

2025 2026 2025 2026 2025 2026

9 unchanged sentences

Sales by geographic destination, Americas, Asia, Middle East & Africa ("AMEA") and Europe, are summarized below:

Three Months Ended December 31, Three Months Ended December 31,

Three Months Ended March 31,

Americas AMEA Europe Total Americas AMEA Europe Total

7 unchanged sentences

Total $ 2,235 1,331 866 4,432 2,371 1,293 898 4,562

Six Months Ended March 31,

Americas AMEA Europe Total Americas AMEA Europe Total

Control Systems & Software $ 1,002 632 482 2,116 1,024 605 504 2,133

Test & Measurement 330 194 193 717 368 243 212 823

Software & Systems 1,332 826 675 2,833 1,392 848 716 2,956

Sensors 977 693 302 1,972 1,028 671 321 2,020

Final Control 1,312 975 506 2,793 1,380 937 565 2,882

Intelligent Devices 2,289 1,668 808 4,765 2,408 1,608 886 4,902

Safety & Productivity 738 112 160 1,010 770 112 168 1,050

Total $ 4,359 2,606 1,643 8,608 4,570 2,568 1,770 8,908

Items 2 and 3.

1 unchanged sentence

(Dollars are in millions, except per share amounts or where noted)

For the first quarter of fiscal 2026, net sales were $4.3 billion, up 4 percent compared with the prior year.

Underlying sales, which exclude foreign currency translation, acquisitions and divestitures, were up 2 percent.

Foreign currency translation ha d a 2 percent favorable impact.

Earnings attributable to common stockholders were $605, up 3 percent, and diluted earnings per share were $1.07, up 5 percent compared with $1.02 in the prior year.

Adjusted diluted earnings per share were $1.46, up 6 percent compared with $1.38 in the prior year.

For the second quarter of fiscal 2026, net sales were $4.6 billion, up 3 percent compared with the prior year.

Underlying sales, which exclude foreign currency translation, acquisitions and divestitures, were up 0.5 percent, including a negative 1 percent impact related to the conflict in the Middle East.

The conflict remains dynamic and continuation or escalation of the conflict could adversely impact our business or results of operations in future periods.

Foreign currency translation had a 2.5 percent favorable impact.

Earnings attributable to common stockholders were $618, up 27 percent, and diluted earnings per share were $1.10, up 28 percent compared with $0.86 in the prior year, reflecting the impact of higher acquisition/divestiture fees and related costs in the prior year primarily related to the AspenTech transaction.

Adjusted diluted earnings per share were $1.54, up 4 percent compared with $1.48 in the prior year, despite a negative impact related to the timing of software renewals of $(0.09).

The table below presents the Company's diluted earnings per share on an adjusted basis to facilitate period-to-period comparisons and provide additional insight into the underlying, ongoing operating performance of the Company.

Adjusted diluted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, discrete taxes and certain gains, losses or impairments.

Three Months Ended Dec 31 2024 2025

Three Months Ended March 31, 2025 2026

Diluted earnings per share $ 0.86 1.10

7 unchanged sentences

Three Months Ended

Adjusted diluted earnings per share - Dec 31, 2024

Adjusted diluted earnings per share - March 31, 2025

Operations 0.08

1 unchanged sentence

Foreign currency 0.07

Effective tax rate 0.02

Share count 0.01

Adjusted diluted earnings per share - Dec 31, 2025

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31

Following is an analysis of the Company’s operating results for the first quarter ended December 31, 2025 compared with the first quarter ended December 31, 2024.

Three Months Ended Dec 31 2024 2025 Change

Adjusted diluted earnings per share - March 31, 2026

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31

Following is an analysis of the Company’s operating results for the second quarter ended March 31, 2026, compared with the second quarter ended March 31, 2025.

2025 2026 Change

(dollars in millions, except per share amounts)

3 unchanged sentences

SG&A $ 1,283 1,316 3 %

Percent of sales 29.3 % 28.6 % (0.7) pts

Percent of sales 28.9 % 28.9 % — %

Other deductions, net $ 418 229

4 unchanged sentences

Percent of sales 14.2 % 17.4 % 3.2 pts

Earnings common stockholders $ 585 605 3 %

Percent of sales 14.0 % 13.9 % (0.1) pts

Net earnings common stockholders $ 485 618 27 %

Diluted EPS - Earnings $ 1.02 1.07 5 %

Adjusted Diluted EPS - Earnings $ 1.38 1.46 6 %

Net sales for the first quarter of fiscal 2026 were $4.3 billion, up 4 percent compared with 2025.

Software & Systems sales were up 5 percent, Intelligent Devices sales were up 4 percent, and Safety & Productivity sales were up 3 percent.

Underlying sales were up 2 percent on 3 percent higher price, offset by 1 percent lower volume due to a negative impact related to the timing of software renewals.

Foreign currency translation had a 2 percent favorable impact.

Percent of sales 11.0 % 13.5 % 2.5 pts

Diluted EPS $ 0.86 1.10 28 %

Adjusted Diluted EPS $ 1.48 1.54 4 %

Net sales for the second quarter of fiscal 2026 were $4.6 billion, up 3 percent compared with 2025.

Software and System sales were up 4 percent, Intelligent Devices sales were up 2 percent, and Safety & Productivity sales were up 5 percent .

Underlying sales were up 0.5 percent on 3.5 percent higher price, offset by 3 percent lower volume due to a negative impact of 2 percent related to the timing of software renewals and 1 percent related to the conflict in the Middle East.

For eign currency translation had a 2.5 percent favorable impact .

Underlying sales were up 9 percent in the U.S.

and flat internationally.

The Americas was up 3 percent, Europe was up 3 percent, while Asia, Middle East & Africa was flat (China down 5 percent).

Cost of sales for the first quarter of fiscal 2026 were $2,035, an increase of $95 compared with 2025 and gross margin of 53.2 percent decreased 0.3 percentage po ints.

and down 5 percent internationally.

The Americas was up 5 percent, Europe was down 4 percent, and Asia, Middle East & Africa was down 5 percent (China down 9 percent).

Cost of sales for the second quarter of fiscal 2026 were $2,140, an increase of $79 compared with 2025, and gross margin of 53.1 percent decreased 0.4 percentage po ints.

Gross margin was negatively impacted by tariffs, which were more than offset by targeted price actions but diluted margins, and the timing of software renewals.

In total, these items negatively impacted gross margin by approximately 0.8 percentage points.

Selling, general and administrative (SG&A) expens es of $1,242 increased $18 and SG&A as a percent of sales decreased 0.7 percentage points to 28.6 percent compared with the prior year, reflecting leverage on higher sales and savings from cost reduction actions.

Other deductions, net were $204 for the first quarter of fiscal 2026, a decrease of $24 compared with the prior year, reflecting lower amortization due to backlog amortization of $26 in the prior year related to the AspenTech acquisition.

Pretax earnings of $775 were flat compared with the prior year.

Earnings increased $51 in Software & Control, $7 in Intelligent Devices, and $1 in Safety & Productivity, see the Business Segments discussion that follows and Note 13.

Income taxes were $169 in the first quarter of fiscal 2026 and $182 in 2025, resulting in effective tax rates of 22 percent and 24 percent, respectively.

In the current year, the One Big Beautiful Bill Act (the "OBBBA") increased the effective tax rate by approximately 1 percentage point due to a lower tax deduction for foreign derived intangible

income from the change to domestic research and development in fiscal 2026.

In February 2026, the U.S.

Supreme Court ruled that the International Emergency Power Act ("IEEPA"), which the U.S.

administration had relied upon to impose certain tariffs, does not authorize the imposition of tariffs.

Following this decision, the U.S.

Court of International Trade directed U.S.

Customs and Border Protection ("CBP") to implement a process for refunding IEEPA tariffs.

On April 20, 2026, CBP launched an administrative portal through which eligible importers may submit claims for such refunds.

The amount and timing of any tariff refunds Emerson may be eligible for remains uncertain and accordingly, the Company did not record a benefit related to potential refunds of IEEPA tariffs paid as of March 31, 2026.

Selling, general and administrative (SG&A) expens es of $1,316 increased $33 and SG&A as a percent of sales was 28.9 percent, consistent with the prior year.

Other deductions, net were $229 for the second quarter of fiscal 2026, a decrease of $189 compared with the prior year, due to a $143 decrease in acquisition/divestiture fees and related costs primarily associated with the AspenTech acquisition in the prior year and lower amortization due to backlog amortization of $26 in the prior year related to the AspenTech acquisition.

Pretax earnings of $793 increased $164, up 26 percent compared with the prior year, reflecting the impact of the AspenTech acquisition-related costs in the prior year discussed above.

Earnings increased $5 in Software & Systems, $8 in Intelligent Devices, and $4 in Safety and Productivity.

S ee the Business Segments discussion that follows and Note 15.

Income taxes were $ 175 in the second quarter of fiscal 2026 and $199 in 2025, resulting in effective tax rates of 22 percent and 32 percent, respectively.

In the current year, the One Big Beautiful Bill Act (the "OBBBA") increased the effective tax rate by approximately 1 percentage point due to lower tax deduction for foreign derived intangible income from the change to domestic research and development in fiscal 2026.

The Company expects the OBBBA to slightly benefit the effective tax rate beginning in fiscal 2027.

Excluding the impact related to the OBBBA, the lower rate in the current year reflected favorable tax items compared to unfavorable items in the prior year.

Excluding the impact related to the OBBBA, the lower rate in the current year reflected favorable tax items that reduced the rate by approximately 2 percentage points.

The prior year rate was negatively impacted by $ 49 ($ 0.09 per share) of discrete tax items related to the AspenTech transaction.

In addition, the fees incurred by AspenTech were not fully deductible.

In total, the net impact of these items increased the rate by 10 percentage points.

Earnings attributable to common stockholders were $618, up 27 percent, and diluted earnings per share were $1.10, up 28 percent compared with $0.86 in the prior year.

Adjusted diluted earnings per share were $1.46 compared with $1.38 in the prior year, reflecting strong operating results.

Adjusted diluted earnings per share were $1.54 compared with $1.48 in the prior year.

See the analysis above of adjusted earnings per share for further details.

2 unchanged sentences

Adjusted EBITA and adjusted EBITA margin are measures used by management and may be useful for investors to evaluate the Company's operational performance.

Three Months Ended Dec 31 2024 2025 Change

Three Months Ended March 31, 2025 2026 Change

Earnings before income taxes $ 629 793 26 %

7 unchanged sentences

Business Segments

Following is an analysis of operating results for the Company’s business segments for the first quarter ended December 31, 2025, compared with the first quarter ended December 31, 2024.

Following is an analysis of operating results for the Company’s business segments for the second quarter ended March 31, 2026, compared with the second quarter ended March 31, 2025.

The Company defines segment earnings as earnings before interest and taxes.

1 unchanged sentence

SOFTWARE & SYSTEMS

Three Months Ended Dec 31 2024 2025 Change FX Acq/Div U/L

2025 2026 Change FX Acq/Div U/L

Control Systems & Software $ 1,093 1,089 — % (2) % — % (2) %

12 unchanged sentences

Test & Measurement 6 7

Total $ 15 11

Adjusted EBITA $ 462 438 (5) %

Adjusted EBITA Margin 31.7 % 29.2 % (2.5) pts

Software & Systems sales were $ 1,453 in the first quarter of 2026, an increase of $71, or 5 percent compared to the prior year, reflecting strong growth in Test & Measurement.

Underlying sales were up 3 percent on 3 percent higher price, while volume was flat including a negative 3 percent impact related to the timing of software renewals.

Underlying sales increased 3 percent in the Americas, 3 percent in Asia, Middle East & Africa (China up 1 percent), and 4 percent in Europe .

Control Systems & Software sales increased $21, or 2 percent, and underlying sales increased slightly, reflecting strong demand in power and life sciences, offset by the negative impact related to the timing of software renewals.

Test & Measurement sales increased $50, or 14 percent, and underlying sales increased 11 percent in the first quarter, reflecting strength in aerospace & defense and semiconductor.

Earnings for Software & Systems increased $51, up 26 percent, and margin increased 2.9 percentage points, reflecting leverage on higher sales, savings from cost reduction actions, and lower intangibles amortization and restructuring and related costs compared to the prior year.

Adjusted EBITA margin increased 0.2 percentage points, which included a negative impact relating to the timing of software renewals of approximately 2 percentage points.

Software & Systems sales were $ 1,503 in the second quarter of 2026, an increase of $52, or 4 percent.

Underlying sales were up 1 percent on 3 percent higher price, while volume decreased 2 percent including a 4.5 percent negative percent impact related to the timing of software renewals.

Unde rlying sales increased 6 percent in the Americas, Europe decreased 5 percent, and Asia, Middle East & Africa was flat (China down 2 percent ).

Control Systems & Software sales decreased slightly and underlying sales decreased 2 percent, reflecting the negative impact related to the timing of software renewals, partially offset by strong demand in power and life sciences.

Sales for Test & Measurement increased $ 56 , or 16 percent , and underlying sales increased 12 percent in the second quarter, reflecting strength in aerospace & defense and semiconductor.

Earnings for Software & Systems were $ 219 , an increase of $ 5 , or 3 percent, while margin decreased slightly to 14.6 percent, reflecting t he negative impact related to the timing of software renewals offset by leverage on higher Test & Measurement sales, lower intangibles amortization and savings from cost reduction actions .

Adjusted EBITA margin was 29.2 percent, a decrease of 2.5 percentage points, which included a negative impact relating to the timing of software renewals of approximately 3 percentage points.

INTELLIGENT DEVICES

Three Months Ended Dec 31 2024 2025 Change FX Acq/Div U/L

2025 2026 Change FX Acq/Div U/L

Sensors $ 1,000 1,024 2 % (2) % — % — %

14 unchanged sentences

Adjusted EBITA Margin 27.1 % 27.9 % 0.8 pts

Intelligent Devices sales were $2,390 in the first quarter of 2026, an increase of $84, or 4 percent.

Underlying sales increased 2 percent on 3 percent higher price, offset by 1 percent lower volume.

Underlying sales increased 3 percent in the Americas, Europe increased 3 percent and Asia, Middle East & Africa was down 2 percent (China down 8 percent).

Sensors sales increased $24 , or 2 percent, reflecting solid growth in Europe .

Sales for Final Control increased $60 , or 4 percent, reflecting strong growth in the Americas and solid growth in Europe, with strength in power.

Earnings for Intelligent Devices were $597 , an increase of $7 , or 1 percent , while margin decreased 0.6 percentage points to 25.0 percent, reflecting unfavorable foreign currency transaction comparisons, deleverage on lower volume and unfavorable mix, partially offset by favorable price less net material inflation.

Adjusted EBITA margin was 26.9 percent, a decrease of 0.7 percentage points .

Intelligent Devices sales were $2,512 in the second quarter of 2026, an increase of $53, or 2 percent, compared to the prior year.

Underlying sales decreased 1 percent on 4 percent lower volume, including a 2 percent negative impact related to the conflict in the Middle East, offset by 3 percent higher price.

Underlying sales increased 5 percent in the Americas, while Europe decreased 4 percent and Asia, Middle East & Africa was down 7 percent (China down 13 percent).

Sensors sales increased $24, or 2 percent, and underlying sales were flat, reflecting the negative impact related to the conflict in the Middle East offset by strong growth in the Americas.

Final Control sales increased $29 or 2 percent, and underlying sales decreased 1 percent, reflecting the negative impact related to the conflict in the Middle East offset by solid growth in the Americas, including strength in power and LNG.

Earnings for Intelligent Devices increased $8, or 1 percent, while margin decreased 0.3 percentage points reflecting unfavorable mix and deleverage on lower volume, partially offset by favorable price less net material inflation.

Adjusted EBITA margin was 27.9 percent, an increase of 0.8 percentage points.

SAFETY & PRODUCTIVITY

Three Months Ended Dec 31 2024 2025 Change FX Acq/Div U/L

2025 2026 Change FX Acq/Div U/L

Sales $ 522 547 5 % (3) % — % 2 %

5 unchanged sentences

Adjusted EBITA Margin 21.8 % 21.7 % (0.1) pts

Safety & Productivity sales were $ 503 in the first quarter of 2026, an increase of $16, or 3 percent compared to the prior year .

Safety & Productivity sales were $547 in the second quarter of 2026, an increase of $25, or 5 percent compared to the prior year .

Underlying sales were up 2 percent on 5 percent higher price offset by 3 percent lower volume.

Underlying sales increased 3 percent in the Americas and 2 percent in Asia, Middle East & Africa, while Europe decreased 6 percent.

Earnings for Safety & Productivity increased $1, up 1 percent , while margin decreased 0.5 percent age points, reflecting deleverage on lower volume, offset by higher price less net material inflation and the impact of tariffs, and savings from cost reduction actions.

Underlying sales increased 5 percent in the Americas, while Asia, Middle East & Africa decreased 7 percent and Europe was down 3 percent.

Earnings for Safety & Productivity increased $4, up 3 percent, while margin decreased 0.4 percent age points, reflecting deleverage on lower volume, offset by higher price less net material inflation and savings from cost reduction actions.

Adjusted EBITA margin decreased 0.1 percentage points .

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31

Following is an analysis of the Company’s operating results for the six months ended March 31, 2026, compared with the six months ended March 31, 2025.

2025 2026 Change

(dollars in millions, except per share amounts)

Net sales $ 8,608 8,908 3 %

Gross profit $ 4,606 4,734 3 %

Percent of sales 53.5 % 53.1 % (0.4) pts

SG&A $ 2,506 2,559 2 %

Percent of sales 29.1 % 28.7 % (0.4) pts

Other deductions, net $ 646 434

Amortization of intangibles $ 457 409

Restructuring costs $ 32 53

Interest expense, net $ 50 173

Earnings before income taxes $ 1,404 1,568 12 %

Percent of sales 16.3 % 17.6 % 1.3 pts

Net earnings common stockholders $ 1,070 1,223 14 %

Percent of sales 12.4 % 13.7 % 1.3 pts

Diluted EPS $ 1.88 2.17 15 %

Adjusted Diluted EPS $ 2.86 3.00 5 %

Net sales for the first six months of 2026 were $8.9 billion, up 3 percent compared with 2025.

Software & Systems sales were up 4 percent, Intelligent Device sales were up 3 percent, and Safety & Productivity sales were up 4 percent.

Underlying sales were up 1 percent on 3 percent higher price, offset by 2 percent lower volume d ue to a negative impact of 1.5 percent related to the timing of software renewals and 0.5 percent related to the conflict in the Middle East.

Foreign currency translation had a 2 percent favorable impact .

Underlying sales increased 7 percent in the U.S.

and decreased 3 percent internationally.

The Americas was up 4 percent, Europe was down 1 percent and Asia, Middle East & Africa was down 3 percent (China was down 7 percent).

Cost of sales for 2026 were $4,174, an increase of $172 compared with 2025, and gross margin of 53.1 percent decreased 0.4 percentage points.

Gross margin was negatively impacted by tariffs, which were more than offset by targeted price actions but diluted margins, and the timing of software renewals.

In total, these items negatively impacted gross margin by approximately 0.8 percentage points.

SG&A expenses of $2,559 increased $53 and SG&A as a percent of sales decreased 0.4 percentage points to 28.7 percent, reflecting savings from cost reduction actions and leverage on higher sales.

Other deductions, net were $434 in 2026, a decrease of $212 compared with the prior year, due to a $155 decrease in acquisition/divestiture fees and related costs primarily associated with the AspenTech acquisition in the prior year and lower amortization due to backlog amortization of $52 in the prior year related to the AspenTech acquisition.

Pretax earnings of $1,568 increased $164 compared with prior year, reflecting the impact of the AspenTech acquisition-related costs in the prior year discussed above.

Earnings increased $59 in Software & Systems, $15 in Intelligent Devices, and $2 in Safety & Productivity, see the Business Segments discussion that follows and Note 15.

Income taxes were $344 in the first six months of fiscal 2026 and $382 in 2025 , resulting in effective tax rates of 22 percent and 27 percent, respectively.

The Company expects the OBBBA to slightly

benefit the effective tax rate beginning in fiscal 2027.

Excluding the impact related to the OBBBA, t he lower rate in the current year reflected favorable tax items that reduced the rate by approximately 2 percentage points.

The prior year rate was negatively impacted by $ 49 ($ 0.09 per share) of discrete tax items related to the AspenTech transaction.

In addition, the fees incurred by AspenTech were not fully deductible.

Overall, these items increased the current year rate by approximately 5 percentage points.

Earnings attributable to common stockholders were $1,223, up 14 percent compared with the prior year, and diluted earnings per share were $2.17, up 15 percent compared with $1.88 in 2025.

Adjusted diluted earnings per share were $3.00 compared with $2.86 in the prior year, reflecting strong operating results.

See the analysis below of adjusted earnings per share for further details.

Six Months Ended March 31, 2025 2026

Diluted earnings per share $ 1.88 2.17

Amortization of intangibles 0.63 0.69

Restructuring and related costs 0.06 0.09

Discrete taxes 0.09 0.02

Acquisition/divestiture fees and related costs 0.20 0.03

Adjusted diluted earnings per share $ 2.86 3.00

The table below summarizes the changes in adjusted diluted earnings per share.

The items identified below are discussed throughout MD&A, see further discussion above and in the Business Segments and Financial Position sections below.

Six Months Ended

Adjusted diluted earnings per share - March 31, 2025

Operations 0.18

Impact of software renewals (0.15)

Foreign currency 0.07

Effective tax rate 0.02

Share count 0.03

Adjusted diluted earnings per share - March 31, 2026

The table below, which shows results on an adjusted EBITA basis, is intended to supplement the Company's discussion of its results of operations herein.

Six Months Ended March 31, 2025 2026 Change

Earnings before income taxes $ 1,404 1,568 12 %

Percent of sales 16.3 % 17.6 % 1.3 pts

Interest expense, net 50 173

Amortization of intangibles 556 508

Restructuring and related costs 40 64

Acquisition/divestiture fees and related costs 189 22

Adjusted EBITA $ 2,239 2,335 4 %

Percent of sales 26.0 % 26.2 % 0.2 pts

Business Segments

Following is an analysis of operating results for the Company’s business segments for the six months ended March 31, 2026, compared with the six months ended March 31, 2025.

The Company defines segment earnings as earnings before interest and taxes.

See Note 15 for a discussion of the Company's business segments.

SOFTWARE & SYSTEMS

2025 2026 Change FX Acq/Div U/L

Control Systems & Software $ 2,116 2,133 1 % (2) % — % (1) %

Test & Measurement 717 823 15 % (3) % — % 12 %

Total $ 2,833 2,956 4 % (2) % — % 2 %

Control Systems & Software $ 444 456 2 %

Test & Measurement (37) 10 126 %

Total $ 407 466 14 %

Margin 14.4 % 15.8 % 1.4 pts

Amortization of intangibles:

Control Systems & Software $ 255 202

Test & Measurement 210 215

Total $ 465 417

Restructuring and related costs:

Control Systems & Software $ 11 5

Test & Measurement 5 6

Total $ 16 11

Adjusted EBITA $ 888 894 — %

Adjusted EBITA Margin 31.4 % 30.2 % (1.2) pts

Software & Systems sales were $2,956 in the first six months of 2026, an increase of 4 percent compared to the prior year.

Underlying sales increased 2 percent on 3 percent higher price while volume decreased 1 percent including a negative 4 percent impact related to the timing of software renewals.

Underlying sales increased 4 percent in the Americas, Europe decreased 1 percent , and Asia, Middle East & Africa increased 2 percent (China was flat).

Control Systems & Software sales increased $17, or 1 percent, and underlying sales decreased 1 percent reflecting the negative impact related to the timing of software renewals , partially offset by strong demand in power and life sciences.

Sales for Test & Measurement increased $106, or 15 percent, and underlying sales increased 12 percent, reflecting strength in aerospace & defense and semiconductor.

Earnings for Software & Systems were $466, an increase of $59, or 14 percent, and margin increased 1.4 percentage points, reflecting leverage on higher sales, lower intangibles amortization and savings from cost reduction actions.

Adjusted EBITA margin was 30.2 percent, a decrease of 1.2 percentage points, which included a negative impact relating to the timing of software renewals of approximately 2.5 percentage points.

INTELLIGENT DEVICES

2025 2026 Change FX Acq/Div U/L

Sensors $ 1,972 2,020 2 % (2) % — % — %

Final Control 2,793 2,882 3 % (3) % — % — %

Total $ 4,765 4,902 3 % (3) % — % — %

Sensors $ 552 542 (2) %

Final Control 660 685 4 %

Total $ 1,212 1,227 1 %

Margin 25.4 % 25.0 % (0.4) pts

Amortization of intangibles:

Sensors $ 21 23

Final Control 57 54

Total $ 78 77

Restructuring and related costs:

Sensors $ 3 13

Final Control 10 27

Total $ 13 40

Adjusted EBITA $ 1,303 1,344 3 %

Adjusted EBITA Margin 27.3 % 27.4 % 0.1 pts

Intelligent Devices sales were $4,902 in the first six months of 2026, an increase of $137, or 3 percent compared to the prior year.

Underlying sales were up slightly on 3 percent higher price offset by 3 percent lower volume, including a 1 percent negative impact related to the conflict in the Middle East.

Underlying sales increased 5 percent in the Americas, decreased 1 percent in Europe, and decreased 5 percent in Asia, Middle East & Africa (China down 10 percent ).

Sensor sales increased $48, or 2 percent, and underlying sales increased slightly, reflecting solid growth in the Americas.

Final Control sales increased $89, or 3 percent, and underlying sales increased slightly, reflecting solid growth in the Americas, with strength in power and LNG.

Earnings for Intelligent Devices increased $15, up 1 percent percent, while margin decreased 0.4 percentage points, reflecting unfavorable mix, unfavorable foreign currency transaction comparisons and deleverage on lower volume, partially offset by favorable price less net material inflation.

Adjusted EBITA margin increased 0.1 percentage points.

SAFETY & PRODUCTIVITY

2025 2026 Change FX Acq/Div U/L

Sales $ 1,010 1,050 4 % (2) % — % 2 %

Earnings $ 202 204 2 %

Margin 19.9 % 19.5 % (0.4) pts

Amortization of intangibles $ 13 14

Restructuring and related costs $ 3 5

Adjusted EBITA $ 218 223 3 %

Adjusted EBITA Margin 21.6 % 21.3 % (0.3) pts

Safety & Productivity sales were $1,050 in the first six months of 2026, an increase of $40, or 4 percent compared to the prior year .

Underlying sales were up 2 percent on 5 percent higher price offset by 3 percent lower volume.

Underlying sales increased 4 percent in the Americas, Europe decreased 4 percent and Asia, Middle East & Africa decreased 3 percent.

Earnings for Safety & Productivity increased $2, or 2 percent, while margin decreased 0.4 percent age points, reflecting deleverage on lower volume, offset by higher price less net material inflation and the impact of tariffs, and savings from cost reduction actions.

Adjusted EBITA margin decreased 0.3 percentage points.

FINANCIAL CONDITION

Key elements of the Company's financial condition for the three months ended December 31, 2025 as compared to the year ended September 30, 2025 and the three months ended December 31, 2024 follow.

Dec 31, 2024 Sept 30, 2025 Dec 31, 2025

Key elements of the Company's financial conditi on as of and for the six months ended March 31, 2026 as compared to the year ended September 30, 2025 and the six months ended March 31, 2025 follow.

Mar 31, 2025 Sept 30, 2025 Mar 31, 2026

Operating working capital $ 2,081 $ 2,039 $ 2,610

3 unchanged sentences

Interest coverage ratio 9.8 X 8.6 X 7.5 X

Operating working capital increased slightly compared to September 30, 2025.

T he current ratio decreased slightly compared to September 30, 2025.

The interest coverage ratio (earnings before income taxes plus interest expense, divided by interest expense) of 7.9X for the 3 months ended December 31, 2025 compares to 10.0X for the 3 months ended December 31, 2024.

Operating working capital increased $571 compared to September 30, 2025, primarily reflecting an increase in inventory and a decrease in accrued expenses.

The current ratio remained flat compared to September 30, 2025.

The interest coverage ratio (earnings before income taxes plus interest expense, divided by interest expense) of 7.5X for the 6 months ended March 31, 2026 compares to 9.8X for the 6 months ended March 31, 2025.

The decrease reflects higher interest expense compared to the prior year.

Operati ng cash flow for the first three months of fiscal 2026 was $699, a decrease of $78 compared with $777 in the prior year, reflecting an increase in operating working capital, partially offset by higher earnings.

Free cas h flow of $602 in the first three months of fiscal 2026 (operating cash flow of $699 less capital expenditures of $97) decreased $92 compared to free cash flow of $694 in 2025 (operating cash flow of $777 less capital expenditures of $83), reflecting the decrease in operating cash flow.

Cash used in investing activities was $125, and cash used in financing activities was $364, reflecting share repurcha ses of $250 and dividends.

During the quarter, the Company repaid €500 of 1.25% euro notes that matured in October 2025.

On February 11, 2025, the Company entered into a $3 billion, 364-day revolving backup credit facility to support increased commercial paper borrowings.

The Company expects to enter into a new 364-day revolving backup credit facility with a reduced capacity prior to the expiration of the current facility.

Operating cash flow from continuing operations for the first six months of fiscal 2026 was $1,478, a decrease of $125 compared with $1,603 in the prior year, reflecting an increase in operating working capital, partially offset by higher earnings.

Free cas h flow of $1,296 in the first six months of fiscal 2026 (operating cash flow of $1,478 less capital expenditures of $182) decreased $137 compared to free cash flow of $1,433 in 2025 (operating cash flow of $1,603 less capital expenditures of $170), reflecting the decrease in operating cash flow.

Cash used in investing activities was $206.

Cash used in financing activities was $1,013, reflecting share repurchases of $542 and dividends.

During the first quarter, the Company repaid €500 of 1.25% euro notes that matured in October 2025.

Total cash provided by operating activities was $1,478, an increase of $460 compared with $1,018 in the prior year.

The increase reflects $585 of income taxes paid in the second quarter of fiscal 2025 related to the sale of the Company's 40 percent non-controlling common equity interest in Copeland, offset by lower operating cash flow from continuing operations.

On February 10, 2026, the Company entered into a $2 billion, 364-day revolving backup credit facility to support commercial paper borrowings.

The facility replaces the Company’s $3 billion, 364-day credit agreement entered into on February 11, 2025, which expired by its terms.

This facility is in addition to the Company's existing $3.5 billion five-year revolving backup credit facility with various banks, which was entered into in February 2023.

17 unchanged sentences

Emerson undertakes no obligation to update any such statements to reflect new information or later developments.

Examples of risks and uncertainties that may cause or actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, which are set forth in the “Risk Factors” of Part I, Item 1A, and the "Safe Harbor Statement" of Part II, Item 7, to the Company's Annual Report on Form 10-K for the year ended September 30, 2025, and in subsequent reports filed with the SEC, which are hereby incorporated by reference.

Examples of risks and uncertainties that may cause or actual results or performance to be materially different from those expressed or implied by forward looking statements include the scope, duration and ultimate impacts of the Russia-Ukraine, Middle East and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, which are set forth in the “Risk Factors” of Part I, Item 1A, and the "Safe Harbor Statement" of Part II, Item 7, to the Company's Annual Report on Form 10-K for the year ended September 30, 2025, and in subsequent reports filed with the SEC, which are hereby incorporated by reference.

The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements