"Jefferies points to two interlocking drivers: accelerating orders and expanding margins. Underlying orders grew 9% in Q1 FY2026, marking the fourth consecutive quarter of strong growth."
"Adjusted segment EBITA margins have expanded consistently, with the Test & Measurement segment reaching 29.7% in Q1 FY2026, up from 25.5% a year earlier."
"CEO Lal Karsanbhai framed the momentum clearly: 'We are experiencing robust demand for our automation technology, led by Software & Systems, with strength in North America, India and the Middle East & Africa.'"
"Emerson trades at a forward P/E of 19x, well below the trailing P/E of 30x, reflecting the market's expectation of earnings growth ahead."
Jefferies upgraded Emerson Electric to Buy, raising the price target to $175 from $160. The upgrade is based on strong order momentum and expanding margins, with underlying orders growing 9% in Q1 FY2026. Adjusted segment EBITA margins have improved, and full-year guidance suggests adjusted EPS of $6.40-$6.55. CEO Lal Karsanbhai noted robust demand for automation technology. Emerson's forward P/E of 19x is below its trailing P/E of 30x, indicating market expectations for earnings growth. The company has a $7.9 billion backlog, supporting revenue visibility.
Read at 24/7 Wall St.
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