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November 12, 2025 • 3 min read
Emerson Electric, a global heavyweight in automation and industrial technology, recently filed its annual report, offering a detailed look at its financial health for the fiscal year ending September 30, 2025. Today, we're diving into the numbers from this 10-K filing to see how the company performed and what's driving its results.
The headline figures present an interesting picture: while top-line growth was modest, profitability took a significant leap forward.
For fiscal year 2025, Emerson reported net sales of $18.0 billion, a 3% increase from the prior year's $17.5 billion. However, the real story is further down the income statement. Earnings from continuing operations surged 41% to $2.3 billion, and diluted earnings per share (EPS) from continuing operations followed suit, jumping 43% to $4.03.
To better understand how Emerson's revenue flows through its costs to generate profit, the following flow diagram visualizes the company's 2025 income statement.
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The small unallocated revenue represents inter-segment sales that are removed during corporate consolidation.
This impressive bottom-line performance wasn't just a fluke. The company's adjusted diluted EPS—a metric that smooths out one-time items like acquisition costs to show core operational performance—grew a healthy 9% to $6.00. This signals that underlying business strength, not just accounting adjustments, is fueling the growth.
Emerson operates through two main business groups: Intelligent Devices (think valves, measurement tools, and safety systems) and Software and Control (the "brains" that run automated processes).
Intelligent Devices, the larger group, saw its sales grow by 2% to $12.4 billion, with earnings climbing a respectable 5% to nearly $3.0 billion.
Software and Control, however, was the star of the show. Sales in this group grew 5% to $5.7 billion, but its earnings skyrocketed an incredible 193%, from $282 million in 2024 to $827 million in 2025.
What caused this dramatic jump? The answer lies in the Test & Measurement division, which was created through Emerson's major acquisition of National Instruments (NI). In 2024, this division posted a loss of $290 million, weighed down by acquisition and integration costs. In 2025, that loss narrowed significantly to just $68 million as restructuring costs fell from $81 million to $18 million and intangible asset amortization decreased. This turnaround is a powerful indicator that the NI acquisition is integrating successfully and beginning to deliver on its strategic promise.
Beyond the income statement, Emerson's fundamentals appear solid. The company generated $3.7 billion in operating cash flow from continuing operations, an 11% increase year-over-year. This strong cash generation gives it flexibility for investments, debt management, and shareholder returns.
Furthermore, the company's order backlog—a key indicator of future revenue—grew slightly to $8.6 billion. Management's confidence is also reflected in its forecast for fiscal 2026, where it projects adjusted diluted EPS to be in the range of $6.35 to $6.55, suggesting continued growth ahead.
In conclusion, Emerson's 2025 performance highlights a company successfully executing a major strategic pivot. While facing the universal challenges of competitive markets and retaining talent, its focus on integrating its software and control assets is clearly paying off, turning a costly acquisition into a powerful engine for profitability. The modest sales growth is overshadowed by impressive margin improvement and operational strength, positioning Emerson well for the year ahead.
Last updated: November 12, 2025