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Emerson Electric Faces A Geopolitical Tipping Point — Can Growth Absorb The $100 Million Hit?

Emerson Electric Company reported a solid performance in its third quarter of fiscal 2026, exceeding expectations across several key metrics including sales, margins, earnings per share (EPS), and cash flow. The company highlighted robust demand driven by secular trends in its growth verticals such as semiconductor and power, where underlying order growth reached 7%, with Software & Systems posting a 10% increase and Test & Measurement orders up 19%. Geographic growth was broad-based, led by North America and Asia, while Europe and China remained softer but showed signs of improvement. Sales grew 6% underlying, with segment EBITDA margin expanding by 140 basis points to 28.5%. Adjusted EPS rose 13% to $1.71, above the top of the company’s guidance range. Software annual contract value (ACV) increased 9% year-over-year, ending the quarter at $1.68 billion.