UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~December 3031, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from ____________________ to __________________

Commission file number 1-278

EMERSON ELECTRIC CO.

(Exact name of registrant as specified in its charter)


Missouri		43-0259330
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


8027 Forsyth Blvd
St. Louis,	Missouri	63105
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (314) 553-2000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	TradingSymbol(s)	Name of each exchange on which registered
Common Stock of $0.50 par value per share	EMR	New York Stock Exchange
		NYSE Texas
1.250% Notes due 2025	EMR 25A	New York Stock Exchange
2.000% Notes due 2029	EMR 29	New York Stock Exchange
3.000% Notes due 2031	EMR 31A	New York Stock Exchange
3.500% Notes due 2037	EMR 37	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Common stock of $0.50 par value per share outstanding at ~~June~~December 3031, 2025: 562.80 million shares.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Statements of Earnings

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three ~~and nine~~ months ended ~~June~~December 3031, 2024 and 2025

(Dollars in millions, except per share amounts; unaudited)

	Three Months EndedJune 30,			Nine Months EndedJune 30,
			Three Months EndedDecember 31,
	~~2024~~		~~2025~~	2024		2025
Net sales	$	~~4,380~~	~~4,553~~	~~12,873~~$	4,175	134,~~161~~346
Cost of sales	~~2,066~~		~~2,160~~	61,~~359~~940		62,~~161~~035
Selling, general and administrative expenses	~~1,254~~		~~1,266~~	31,~~827~~224		31,~~773~~242
Gain on subordinated interest	—		—	(79)		—
Other deductions, net				228		204
Loss on Copeland note receivable	279		—	279		—
Interest expense (net of interest income of $44 and $26, respectively)				8		90
Other deductions, net	294		298	1,075		944
Earnings before income taxes				775		775
Interest expense (net of interest income of $32, $31, $105 and $120, respectively)	56		95	157		145
Income taxes				182		169
Interest income from related party	(24)		—	(86)		—
Net earnings				593		606
Earnings from continuing operations before income taxes	455		734	1,341		2,138
Less: Noncontrolling interests in subsidiaries				8		1
Income taxes	88		154	266		536
Net earnings common stockholders				$	585	605
Earnings from continuing operations	367		580	1,075		1,602
Earnings per share:
Discontinued operations, net of tax of $5, $2, $27 and $2, respectively	(15)		6	(88)		7
Basic				$	1.03	1.08
Net earnings	352		586	987		1,609
Diluted				$	1.02	1.07
Less: Noncontrolling interests in subsidiaries	23		—	15		(48)
Net earnings common stockholders	$	329	586	972		1,657
Earnings common stockholders:
Earnings from continuing operations	344		580	1,060		1,650
Discontinued operations	(15)		6	(88)		7
Net earnings common stockholders	$	329	586	972		1,657
Basic earnings per share common stockholders:
Earnings from continuing operations	$	0.60	1.03	1.85		2.92
Discontinued operations	(0.02)		0.01	(0.15)		0.01
Basic earnings per common share	$	0.58	1.04	1.70		2.93
Diluted earnings per share common stockholders:
Earnings from continuing operations	$	0.60	1.03	1.84		2.91
Discontinued operations	(0.03)		0.01	(0.15)		0.01
Diluted earnings per common share	$	0.57	1.04	1.69		2.92
Weighted average outstanding shares:
Basic	~~571.9~~		~~562.1~~	~~571~~568.45		~~564~~561.58
Diluted	~~574.8~~		~~564.7~~	~~574~~571.1		~~567~~564.1

See accompanying Notes to Consolidated Financial Statements.

Consolidated Statements of Comprehensive Income

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three ~~and nine~~ months ended ~~June~~December 3031, 2024 and 2025

(Dollars in millions; unaudited)

Three Months Ended June 30,

Nine Months Ended June 30,

Three Months Ended December 31,

2024

2025

~~2024~~

~~2025~~

Net earnings

~~352~~593

~~586~~606

~~987~~

~~1,609~~

Other comprehensive income (loss), net of tax:

Foreign currency translation

(~~124~~492)

~~298~~(20)

~~(5)~~

Pension and postretirement

~~(12)~~3

~~(36)~~

Cash flow hedges

~~(6)~~10

~~(1)~~8

~~(4)~~

Total other comprehensive income (loss)

(~~142~~479)

~~301~~(8)

Comprehensive income

~~210~~114

~~887~~598

~~1,003~~

~~1,623~~

Less: Noncontrolling interests in subsidiaries

211

1—

~~(52)~~

Comprehensive income common stockholders

~~189~~113

~~886~~598

~~988~~

~~1,675~~

See accompanying Notes to Consolidated Financial Statements.

Consolidated Balance Sheets

EMERSON ELECTRIC CO. & SUBSIDIARIES

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

	Sept 30, 2024		June 30, 2025
	Sept 30, 2025		Dec 31, 2025
ASSETS
Current assets
Cash and equivalents	$	31,~~588~~544	21,~~219~~748
Receivables, less allowances of $121 and $125, respectively	2,927		2,908
Receivables, less allowances of $123 and $124, respectively	3,101		2,972
Inventories	2,~~180~~213		2,~~288~~353
Other current assets	1,~~497~~725		1,~~657~~770
Total current assets	108,~~192~~583		98,~~072~~843
Property, plant and equipment, net	2,~~807~~871		2,~~791~~867
Other assets
Goodwill	18,~~067~~193		18,~~158~~182
Other intangible assets	109,~~436~~458		9,~~669~~205
Other	2,~~744~~859		2,~~827~~842
Total other assets	3130,~~247~~510		30,~~654~~229
Total assets	$	4441,~~246~~964	4241,~~517~~939
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings and current maturities of long-term debt	$	~~532~~4,797	5,~~953~~832
Accounts payable	1,~~335~~384		1,~~272~~339
Accrued expenses	3,~~875~~616		3,~~507~~349
Total current liabilities	59,~~742~~797		10,~~732~~520
Long-term debt	78,~~155~~319		87,~~278~~575
Other liabilities	3,~~840~~550		3,~~621~~552
Equity
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 570.2 shares and 562.8 shares, respectively	477		477
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 562.8 shares and 562.0 shares, respectively	477		477
Additional paid-in-capital	~~169~~85		2816
Retained earnings	40,~~830~~603		40,~~265~~871
Accumulated other comprehensive income (loss)	(~~868~~821)		(~~850~~828)
Cost of common stock in treasury, 383.2 shares and 390.6 shares, respectively	(18,972)		(20,050)
Cost of common stock in treasury, 390.6 shares and 391.4 shares, respectively	(20,062)		(20,259)
Common stockholders’ equity	2120,~~636~~282		1920,~~870~~277
Noncontrolling interests in subsidiaries	~~5,873~~16		1615
Total equity	2720,~~509~~298		1920,~~886~~292
Total liabilities and equity	$	4441,~~246~~964	4241,~~517~~939

See accompanying Notes to Consolidated Financial Statements.

Consolidated Statements of Equity

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three ~~and nine~~ months ended ~~June~~December 3031, 2024 and 2025

(Dollars in millions; unaudited)

	Three Months Ended June 30,			Nine Months Ended June 30,
	Three Months Ended December 31,
	2024		2025	~~2024~~	~~2025~~
Common stock	$	477	477	~~477~~	~~477~~
Additional paid-in-capital
Beginning balance	~~158~~169		—85	62	~~169~~
Stock plans	16(56)		28(92)	~~186~~	14
AspenTech purchases of common stock	(34)		—	(108)	—
Reclass negative APIC to retained earnings	—		23
Purchase of noncontrolling interest	—		—	—	(1,400)
Ending balance	113		16
Settlement of AspenTech share awards	—		—	—	(76)
Reclass negative APIC to retained earnings	—		—	—	1,321
Ending balance	140		28	140	28
Retained earnings
Beginning balance	40,~~108~~830		3940,~~977~~603	~~40,070~~	~~40,830~~
Net earnings common stockholders	~~329~~585		~~586~~605	~~972~~	~~1,657~~
Dividends paid (per share: $0.525, $0.5275, $1.575 and 1.5825, respectively)	(302)		(298)	(907)	(901)
Dividends paid (per share: $0.5275 and $0.555, respectively)	(303)		(314)
Reclass negative APIC to retained earnings	—		—(23)	—	~~(1,321)~~
Ending balance	4041,~~135~~112		40,~~265~~871	~~40,135~~	~~40,265~~
Accumulated other comprehensive income (loss)
Beginning balance	(~~1,097~~868)		(~~1,150~~821)	~~(1,253)~~	~~(868)~~
Foreign currency translation	(~~122~~485)		~~297~~(19)	56	~~(1)~~
Pension and postretirement	~~(12)~~3		4	~~(36)~~	10
Cash flow hedges	~~(6)~~10		~~(1)~~8	~~(4)~~	9
Ending balance	(1,~~237~~340)		(~~850~~828)	~~(1,237)~~	~~(850)~~
Treasury stock
Beginning balance	(18,~~746~~972)		(20,~~055~~062)	~~(18,667)~~	~~(18,972)~~
Purchases	—(946)		(26252)	~~(175)~~	~~(1,161)~~
Issued under stock plans	3046		3155	~~126~~	83
Ending balance	(1819,~~716~~872)		(20,~~050~~259)	~~(18,716)~~	~~(20,050)~~
Common stockholders' equity	20,~~799~~490		1920,~~870~~277	~~20,799~~	~~19,870~~
Noncontrolling interests in subsidiaries
Beginning balance	5,~~881~~873		1716	~~5,909~~	~~5,873~~
Net earnings (loss)	23		—	15	(48)
Net earnings	8		1
Stock plans	15		—	48	30
AspenTech purchases of common stock	(25)		—	(80)	—
Dividends paid	—		(1)
Dividends paid	(3)		(2)	(3)	(3)
Other comprehensive income	(7)		(1)
Purchase of noncontrolling interest	—		—	—	(5,832)
Ending balance	5,889		15
Other comprehensive income	(2)		1	—	(4)
Total equity	$	26,379	20,292
Ending balance	5,889		16	5,889	16
Total equity	$	26,688	19,886	26,688	19,886

See accompanying Notes to Consolidated Financial Statements.

Consolidated Statements of Cash Flows

EMERSON ELECTRIC CO. & SUBSIDIARIES

~~Nine~~Three Months Ended ~~June~~December 3031, 2024 and 2025

(Dollars in millions; unaudited)

	Nine Months Ended
	Three Months Ended
	June 30,
	December 31,
	2024		2025
Operating activities
Net earnings	$	~~987~~593	~~1,609~~606
Earnings from discontinued operations, net of tax	88		(7)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	~~1,263~~383		~~1,139~~359
Stock compensation	~~203~~68		~~198~~55
Amortization of acquisition-related inventory step-up	231		—
Changes in operating working capital	(154)		(357)
Gain on subordinated interest	(79)		—
Other, net	(113)		36
Loss on Copeland note receivable	279		—
Cash provided by operating activities	777		699
Changes in operating working capital	(176)		(80)
Other, net	(552)		(195)
Cash from continuing operations	2,244		2,664
Cash from discontinued operations	4		(576)
Cash provided by operating activities	2,248		2,088
Investing activities
Capital expenditures	(~~251~~83)		(~~263~~97)
Purchases of businesses, net of cash and equivalents acquired	(~~8,342~~37)		~~(36)~~—
Proceeds from subordinated interest	79		—
Other, net	(22)		(28)
Other, net	(86)		(94)
Cash used in investing activities	(142)		(125)
Cash from continuing operations	(8,600)		(393)
Cash from discontinued operations	36		—
Cash used in investing activities	(8,564)		(393)
Financing activities
Net increase in short-term borrowings	2,229		1,419
Net increase (decrease) in short-term borrowings	2		(485)
Proceeds from short-term borrowings greater than three months	~~322~~—		53,~~292~~473
Payments of short-term borrowings greater than three months	~~(100)~~—		(12,~~349~~099)
Proceeds from long-term debt	—		1,544
Payments of long-term debt	(2)		(587)
Payments of long-term debt	(547)		(503)
Dividends paid	(301)		(312)
Dividends paid	(901)		(895)
Purchases of common stock	(899)		(250)
Purchases of common stock	(175)		(1,147)
Other, net	(91)		(104)
AspenTech purchases of common stock	(188)		—
Cash used in financing activities	(1,291)		(364)
Purchase of noncontrolling interest	—		(7,244)
Effect of exchange rate changes on cash and equivalents	(98)		(6)
Settlement of AspenTech share awards	—		(76)
Increase (decrease) in cash and equivalents	(754)		204
Other, net	(57)		(60)
Beginning cash and equivalents	3,588		1,544
Cash provided by (used in) financing activities	583		(3,019)
Ending cash and equivalents	$	2,834	1,748
Effect of exchange rate changes on cash and equivalents	(20)		(45)
Decrease in cash and equivalents	(5,753)		(1,369)
Beginning cash and equivalents	8,051		3,588
Ending cash and equivalents	$	2,298	2,219
Changes in operating working capital
Receivables	$	44156	19119
Inventories	(3486)		(91141)
Other current assets	(~~130~~5)		(~~113~~52)
Accounts payable	(6153)		(6233)
Accrued expenses	5(166)		~~167~~(250)
Total changes in operating working capital	$	(~~176~~154)	(80357)

See accompanying Notes to Consolidated Financial Statements.

Notes to Consolidated Financial Statements

EMERSON ELECTRIC CO. & SUBSIDIARIES

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

(1) BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited consolidated financial statements of Emerson Electric Co. ("Emerson", "we", "us", "our" or the "Company") include all adjustments necessary for a fair presentation of operating results for the interim periods presented. Adjustments consist of normal and recurring accruals. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all disclosures required for annual financial statements presented in conformity with U.S. generally accepted accounting principles (GAAP). ~~Results are computed independently each period; as a result, the quarterly amounts may not sum to the calculated year-to-date figures.~~ For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, ~~2024~~2025.

~~Certain prior year amounts have been reclassified to conform to the current year presentation.~~ On ~~March~~November 1220, 2025, Emerson ~~completed~~announced ~~its~~that ~~purchase~~with of the ~~remaining~~completion ~~outstanding shares~~ of ~~common~~the ~~stock~~Company's ~~of Aspen Technology~~transformation, ~~Inc.~~it ~~("AspenTech")~~has ~~not~~revised ~~already~~its ~~owned~~management byorganization ~~the~~and ~~Company.~~updated Asits areportable ~~result~~segments. ofEffective ~~the~~in ~~transaction~~fiscal 2026, ~~AspenTech~~Emerson is now areports ~~wholly~~results ~~owned~~for ~~subsidiary~~five ofsegments: ~~the~~Control ~~Company.~~Systems ~~AspenTech~~& ~~was~~Software ~~reorganized~~and ~~upon~~Test ~~completion~~& ofMeasurement, ~~the~~which ~~transaction~~are combined and ~~now~~reported ~~reports~~as tothe ~~Control~~Software & Systems &group; ~~Software~~Sensors ~~leadership.~~and ~~AspenTech's~~Final ~~results~~Control, which ~~were~~are ~~previously~~combined and reported as athe ~~separate~~Intelligent ~~segment,~~Devices ~~are~~group; ~~now~~and ~~consolidated~~Safety ~~into~~& ~~the~~Productivity. ~~Control~~Prior ~~Systems~~year &amounts ~~Software~~have ~~segment~~been ~~for~~reclassified ~~all~~to ~~periods~~conform ~~presented~~to the current year presentation. See ~~Notes~~Note 413 ~~and~~for 15further details.

(2) REVENUE RECOGNITION

Emerson is a global technology and software company that provides innovative solutions for customers in a wide range of end markets around the world. The majority of the Company's revenues relate to a broad offering of manufactured products and software which are recognized at the point in time when control transfers, while a smaller portion is recognized over time or relates to sales arrangements with multiple performance obligations. See Note 1513 for additional information about the Company's revenues.

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, 2024

June 30, 2025

Sept 30, 2025

Dec 31, 2025

Unbilled receivables (contract assets)

1,~~599~~891

1,~~795~~900

Customer advances (contract liabilities)

(1,~~115~~105)

(1,~~205~~171)

Net contract assets (liabilities)

~~484~~786

~~590~~729

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 ~~and nine~~ months ended ~~June~~December 3031, 2025 included $65428 ~~and $711, 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 ~~and nine~~ months ended ~~June~~December 3031, 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 ~~June~~December 3031, 2025, the Company's backlog relating to unsatisfied (or partially unsatisfied) performance obligations in contracts with its customers was approximately $8.9.2 billion. The Company expects to recognize approximately 75 percent of its remaining performance obligations as revenue over the next 12 months, with the remainder substantially over the following two years.

(3) COMMON SHARES

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 EndedJune 30,

Nine Months EndedJune 30,

Three Months EndedDecember 31,

2024

2025

~~2024~~

~~2025~~

Basic shares outstanding

~~571~~568.95

~~562~~561.18

~~571.4~~

~~564.5~~

Dilutive shares

2.96

2.63

~~2.7~~

~~2.6~~

Diluted shares outstanding

~~574~~571.81

564.71

~~574.1~~

~~567.1~~

(4) ACQUISITIONS AND DIVESTITURES

AspenTech

On March 12, 2025, Emerson completed its purchase of the remaining outstanding shares of common stock of AspenTech not already owned by the Company for approximately $7.2 billion. 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 ~~are~~were reported as an adjustment to Equity in 2025. Separately, AspenTech incurred $127 ($113 after-tax) of deal-related fees which ~~are~~were 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 ~~and~~& ~~Control~~Systems business group, see Note 1513.

National Instruments

On October 11, 2023, the Company completed the acquisition of National Instruments Corporation (“NI”). NI, which provides software-connected automated test and measurement systems that enable enterprises to bring products to market faster and at a lower cost, had revenues of approximately $1.7 billion and pretax earnings of approximately $170 for the 12 months ended September 30, 2023. NI is now referred to as Test & Measurement and reported as a new segment in the Software and Control business group, see Note 15.

The following table summarizes the components of the purchase consideration reflected in the acquisition accounting for NI.

Cash paid to acquire remaining NI shares not already owned by Emerson	$	7,833
Payoff of NI debt at closing	634
Total consideration paid in cash at closing	8,467
Fair value of NI shares already owned by Emerson prior to acquisition	137
Value of stock-based compensation awards attributable to pre-combination service	49
Total purchase consideration	$	8,653

Pro Forma Financial Information

The following unaudited proforma consolidated condensed financial results of operations are presented as if the acquisition of NI occurred on October 1, 2022. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time ($ in millions, except per share amounts).

	Three Months Ended June 30,		Nine Months Ended June 30,
	2024		2024
Net Sales	$	4,380	12,892
Net earnings from continuing operations common stockholders	$	374	1,396
Diluted earnings per share from continuing operations	$	0.65	2.43

The pro forma results for the three months ended June 30, 2024 exclude backlog amortization of $34 which was assumed to be incurred in the third quarter of fiscal 2023.

The pro forma results for the nine months ended June 30, 2024 exclude transaction costs of $69 which were assumed to be incurred in the first quarter of fiscal 2023. The pro forma results for the nine months ended June 30, 2024 also exclude backlog amortization of $102, inventory step-up amortization of $213, and retention bonuses of $51 which were all assumed to be incurred in the nine months ended June 30, 2023.

Other Transactions

On November 15, 2024, AspenTech acquired Open Grid Systems Limited, a global provider of network model management technology and a pioneer in developing model-driven applications supporting open access to data through industry standards, for a total purchase price of $46, net of cash acquired. 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.

In(5) PENSION ~~the~~& ~~second~~POSTRETIREMENT quarter of fiscal 2024, the Company received its final distribution of $79 related to its subordinated interest in Vertiv. In addition, the Company divested a small business in the Final Control segment and recognized a non-cash loss of $39. PLANS

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

(5) DISCONTINUED OPERATIONS


	Three Months Ended December 31,
		2024		2025
Service cost		$	18	19
Interest cost		48		48
Expected return on plan assets		(73)		(75)
Net amortization		4		5
Total		$	(3)	(3)

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 in a $14.0 billion transaction. As a part of this transaction, Emerson received a note receivable with a face value of $2.25 billion and retained a 40 percent non-controlling common equity interest in a new standalone joint venture between Emerson and Blackstone named Copeland. Subsequently, on June 6, 2024, the Company entered into a definitive agreement to sell its 40 percent non-controlling common equity interest in Copeland to private equity funds managed by Blackstone for $1.5 billion. The transaction closed on August 13, 2024 and the Company recognized a gain of $539 ($435 after-tax) in discontinued operations in fiscal 2024. See Note 10 for further details.7

~~Results~~(6) OTHER ~~from~~DEDUCTIONS, ~~discontinued operations were as follows:~~NET

Other deductions, net are summarized below:

	Three Months Ended June 30,					Nine Months Ended June 30,
	Three Months EndedDecember 31,
	2024				~~2025~~	~~2024~~2025	~~2025~~
Net sales	$	—			—	—	—
Amortization of intangibles (intellectual property and customer relationships)			$	229		205
Cost of sales	—				—	—	—
Restructuring costs			11			9
SG&A	—				—	—	1
Acquisition/divestiture costs			13			1
Gain on sale of business	—				—	—	—
Foreign currency transaction (gains) losses			1			13
Other deductions, net	20				(4)	115	(6)
Other			(26)			(24)
Earnings before income taxes	(20)				4	(115)	5
Total			$	228		204
Income taxes	(5)				(2)	(27)	(2)
Earnings, net of tax	$	(15)			6	(88)	7

~~Results~~For ~~for~~ the three months ended ~~and~~December ~~nine~~31, ~~months~~2025, ~~ended~~the ~~June~~decrease ~~30,~~in ~~2024~~intangibles ~~included~~amortization ~~equity~~was ~~method~~largely ~~losses~~due to backlog amortization of $1626 ~~($9~~in ~~after-tax)~~the ~~and~~prior ~~$111~~year ~~($82~~related ~~after-tax)~~to the AspenTech acquisition. Other is composed of several items, ~~respectively~~including pension expense, ~~related~~litigation tocosts, ~~the~~provision ~~Company's~~for ~~non-controlling~~bad ~~common~~debt ~~equity~~and ~~interest~~other initems, ~~Copeland~~none of which is individually significant.

~~Net cash from operating and investing activities from discontinued operations for the nine months ended June 30, 2025 and 2024 were as follows:~~(7) 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.

Restructuring expense by business segment follows:


	Three Months Ended December 31,
		2024		2025

Control Systems & Software		$	2	1
Test & Measurement		(1)		—
Software & Systems		1		1

Sensors		1		5
Final Control		7		2
Intelligent Devices		8		7

Safety & Productivity		1		1

Corporate		1		—

Total		$	11	9

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

Severance and benefits		$	116		4		25		95




Other		4			5		6		3
Total		$	120		9		31		98

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

	Nine Months Ended June 30,
	2024	2025
Cash from operating activities	4	(576)
Cash from investing activities	36	—

(8) TAXES

~~Cash~~Income ~~from~~taxes ~~operating~~were ~~activities~~$169 ~~for~~in the ~~nine~~first ~~months~~quarter ~~ended~~of ~~June~~fiscal ~~30,~~2026 and $182 in 2025, ~~primarily~~resulting ~~reflects~~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 ~~taxes~~from ~~paid~~the change to domestic research and development in fiscal 2026. Excluding the impact related to the ~~sale~~OBBBA, ofthe lower rate in the ~~Company's~~current 40year ~~percent~~reflected ~~non-controlling~~favorable ~~common~~tax ~~equity~~items ~~interest~~compared to unfavorable items in ~~Copeland~~the prior year.

(9) OTHER FINANCIAL INFORMATION

(6) PENSION & POSTRETIREMENT PLANS


	Sept 30, 2025			Dec 31, 2025
Inventories
Finished products		$	520		563
Raw materials and work in process		1,693			1,790
Total		$	2,213		2,353

	Three Months Ended June 30,				Nine Months Ended June 30,
Property, plant and equipment, net
		2024		2025		2024	2025
Property, plant and equipment, at cost		$	6,408	6,461
Service cost		$	9	18		27	54
Less: Accumulated depreciation		3,537		3,594
Interest cost		55		48		165	144
Total		$	2,871	2,867
Expected return on plan assets		(74)		(73)		(222)	(219)
Net amortization		(14)		4		(42)	12
Total		$	(24)	(3)		(72)	(9)

(7) OTHER DEDUCTIONS, NET




Goodwill by business segment
Control Systems & Software	$	9,095	9,096
Test & Measurement	3,468		3,463
Software & Systems	12,563		12,559


Sensors	1,604		1,602
Final Control	3,400		3,396
Intelligent Devices	5,004		4,998

Safety & Productivity	626		625

Total	$	18,193	18,182

	Three Months EndedJune 30,				Nine Months EndedJune 30,
Other intangible assets
	2024			2025		2024	2025
Gross carrying amount		$	15,832	15,843
Amortization of intangibles (intellectual property and customer relationships)		$	264	219		811	677
Less: Accumulated amortization		6,374		6,638
Restructuring costs		57		37		170	70
Net carrying amount		$	9,458	9,205
Acquisition/divestiture costs		7		25		92	181
Foreign currency transaction (gains) losses		9		31		60	73
Loss on divestiture of business		—		—		39	—
Other		(43)		(14)		(97)	(57)
Total		$	294	298		1,075	944

~~For~~Other ~~the~~intangible ~~three~~assets ~~and~~include ~~nine~~customer ~~months ended June 30~~relationships, ~~2025~~net, ~~the~~of ~~increase~~$5,657 inand ~~acquisition/divestiture~~$5,801 ~~costs~~and isintellectual ~~primarily~~property, ~~related~~net, ~~to the AspenTech transaction. See Note 4. Other is composed~~ of ~~several items~~$3,292 ~~including~~and a$3,411 ~~portion~~as of ~~pension expense~~December 31, ~~litigation~~2025 ~~costs, provision for bad debt~~ and ~~other~~September 30, ~~items~~2025, ~~none of which is individually significant~~respectively.


	Three Months Ended December 31,
	2024		2025
Depreciation and amortization expense includes the following:
Depreciation expense	$	83	84
Amortization of intangibles (includes $49 and $49 reported in Cost of Sales, respectively)	278		254
Amortization of capitalized software	22		21
Total	$	383	359

(8) RESTRUCTURING COSTS


	Sept 30, 2025			Dec 31, 2025
Items reported in other noncurrent assets include the following:
Pension assets		$	1,229		1,247
Operating lease right-of-use assets		637			640
Unbilled receivables (contract assets)		621			608
Deferred income taxes		79			75
Asbestos-related insurance receivables		55			52

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 2025 restructuring expense and related costs to be approximately $140, including costs to complete actions initiated in the first nine months of the year.



Items reported in accrued expenses include the following:
Customer advances (contract liabilities)	$	1,031	1,088
Employee compensation	740		461
Income taxes	130		193
Operating lease liabilities (current)	138		139
Product warranty	90		85

	Three Months Ended June 30,					Nine Months EndedJune 30,
Items reported in other liabilities include the following:
	2024			2025		2024		2025
Deferred income taxes		$	1,822		1,792
Final Control		$	5		3		1		6
Operating lease liabilities (noncurrent)		505			513
Measurement & Analytical		3			2		7		5
Pension and postretirement liabilities		467			454
Discrete Automation		16			6		33		17
Asbestos litigation		131			126
Safety & Productivity		1			(1)		2		—
Intelligent Devices		25			10		43		28
Control Systems & Software		3			7		7		16
Test & Measurement		24			—		78		3
Software and Control		27			7		85		19
Corporate		5			20		42		23
Total		$	57		37		170		70

~~Corporate~~(10) FINANCIAL restructuring for the three and nine months ended June 30, 2025 includes $20 and $21, respectively, of integration-related stock compensation expense attributable to the AspenTech transaction. Corporate restructuring of $5 and $42 for the three and nine months ended June 30, 2024, respectively, is comprised almost entirely of integration-related stock compensation expense attributable to NI. INSTRUMENTS

~~Details~~Hedging Activities – As of December 31, 2025, the ~~change~~notional inamount ~~the~~of ~~liability~~foreign ~~for~~currency ~~restructuring~~hedge ~~costs~~positions ~~during~~was ~~the~~approximately ~~nine~~$4.2 ~~months~~billion. ~~ended~~All ~~June~~derivatives receiving hedge accounting are cash flow hedges. The majority of hedging gains and losses deferred as of December 3031, 2025 ~~follow:~~are expected to be recognized over the next 12 months as the underlying 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. Cash flows related to foreign currency hedges are classified within operating cash flows.

	Sept 30, 2024			Expense		Utilized/Paid		June 30, 2025
Severance and benefits		$	105		58		87		76
Other		7			12		14		5
Total		$	112		70		101		81

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. In fiscal 2025, the Company issued €500 of 3.0% notes due March 2031 and €500 of 3.5% notes due March 2037. The euro notes reduce foreign currency risk associated with the Company's international subsidiaries that use the euro as their functional currency and have been designated as a hedge of a portion of the investment in these operations. Foreign currency gains or losses associated with the euro-denominated debt are deferred in accumulated other comprehensive income (loss) and will remain until the hedged investment is sold or substantially liquidated. 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:

The tables above do not include $3 and $4 of costs related to restructuring actions incurred for the three months ended June 30, 2024 and 2025, respectively, that are required to be reported in cost of sales and selling, general and administrative expenses; year-to-date amounts are $10 and $11, respectively.


		Three Months Ended December 31,
		Into Earnings			Into OCI
Gains (Losses)	Location	2024		2025		2024	2025
Foreign currency	Sales	1		1		11	4
Foreign currency	Cost of sales	—		5		3	12
Foreign currency	Other deductions, net	(51)		(9)

Net Investment Hedges
Euro denominated debt				—		70	12
Total		$	(50)	(3)		84	28

(9) TAXES

Income taxes were $154 in the third quarter of fiscal 2025 and $88 in 2024, resulting in effective tax rates of 21 percent and 19 percent, respectively. The prior year rate reflected a 3 percentage point benefit from return-to-provision adjustments related to the filing of the prior year U.S. tax return, partially offset by other individually immaterial items.

Income taxes were $536 in the first nine of months of fiscal 2025 and $266 in 2024, resulting in effective tax rates of 25 percent and 20 percent, respectively. The current 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 3 percentage points. The prior year rate included a $57 ($0.10 per share) benefit related to discrete tax items and the benefit discussed above related to the prior year U.S. tax return, partially offset by unfavorable impacts from inventory step-up amortization and the loss on divestiture (see Note 4), which was nondeductible for tax purposes. In total, the net impact of these items benefited the rate by approximately 2 percentage points, which was partially offset by other individually immaterial items.

~~(10)~~Regardless ~~EQUITY~~of ~~METHOD~~whether ~~INVESTMENT~~derivatives ~~AND~~and ~~NOTE~~non-derivative ~~RECEIVABLE~~financial instruments receive hedge accounting, the Company expects hedging gains or losses to be offset by losses or gains on the related underlying exposures. 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 assessment of hedge effectiveness.

AsFair ~~discussed~~Value inMeasurement ~~Note~~– 5,Valuations for all derivatives and the Company's ~~completed~~long-term ~~the~~debt ~~divestiture~~fall ofwithin aLevel ~~majority~~2 ~~stake~~of inthe ~~Copeland~~GAAP onvaluation ~~May~~hierarchy. As of December 31, ~~2023~~2025, ~~and~~the ~~received~~fair ~~upfront,~~value ~~pretax~~of ~~cash~~long-term ~~proceeds~~debt ofwas approximately $9.7.6 billion, ~~and~~which awas ~~note~~lower ~~receivable~~than ~~with~~the acarrying ~~face~~ value ofby $2694.25 ~~billion,~~The ~~while~~fair ~~retaining~~value aof 40foreign ~~percent~~currency ~~non-controlling~~contracts, ~~common~~which ~~equity~~are ~~interest~~reported in ~~Copeland~~Other current assets and Accrued expenses, did not materially change since September 30, 2025.

OnCounterparties ~~June~~to 6,derivatives ~~2024,~~arrangements ~~the~~are companies with investment-grade credit ratings. The Company ~~entered~~has ~~into~~bilateral ~~definitive~~collateral ~~agreements~~arrangements towith ~~sell~~counterparties ~~its~~with 40credit ~~percent~~rating-based ~~non~~posting thresholds that vary depending on the arrangement. If credit ratings on the Company's debt fall below pre-~~controlling~~established ~~common~~levels, ~~equity~~counterparties ~~interest~~can require immediate full collateralization of all derivatives in ~~Copeland~~net toliability ~~private~~positions. ~~equity~~The ~~funds~~maximum ~~managed~~amount bythat ~~Blackstone~~could ~~for~~potentially $1have been required was immaterial.5 ~~billion~~The ~~and~~Company ~~the~~also ~~note~~can ~~receivable~~demand tofull ~~Copeland~~collateralization ~~for~~of $1derivatives in net asset positions should any counterparty credit ratings fall below certain thresholds.9 ~~billion,~~No collateral was posted with counterparties and ~~the~~none ~~transactions~~was ~~were~~held ~~subsequently~~by ~~completed~~the inCompany ~~August~~as ~~2024~~of December 31, 2025.

~~For the three and nine months ended June 30, 2024 the Company recognized non-cash interest income on the note receivable~~ (~~through the date of the agreement~~11) ACCUMULATED ofOTHER ~~$24~~COMPREHENSIVE ~~and~~INCOME ~~$86, respectively which is reported in Interest income from related party within continuing operations. Upon entering into the note agreement, the Company recorded a pretax loss of $279~~ (~~$217 after-tax, $0.38 per share~~LOSS) ~~to adjust the carrying value of the note to $1.9 billion to reflect the transaction price.~~

Summarized financial information for Copeland for the three and nine months ended June 30, 2024 is as follows.


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,
		2024		2025
Foreign currency translation
Beginning balance		$	(616)	(565)
Other comprehensive income (loss), net of tax of $16 and $(3), respectively		(485)		(19)

Ending balance		(1,101)		(584)

Pension and postretirement
Beginning balance		(245)		(269)
Amortization of deferred actuarial losses into earnings, net of tax of $(1) and $(1), respectively		3		4

Ending balance		(242)		(265)

Cash flow hedges
Beginning balance		(7)		13
Gains deferred during the period, net of taxes of $(3) and $(4), respectively		11		12
Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $— and $2, respectively		(1)		(4)


Ending balance		3		21

Accumulated other comprehensive income (loss)		$	(1,340)	(828)

	Three Months Ended June 30,		Nine Months Ended June 30,
	2024		2024
Net sales	$	1,259	$	3,458
Gross profit	$	441	$	1,198
Income (loss) from continuing operations	$	(40)	$	(280)
Net income (loss)	$	(40)	$	(280)
Net income (loss) attributable to shareholders	$	(40)	$	(278)

(12) STOCK-BASED COMPENSATION

	Sept 30, 2024			June 30, 2025
Inventories
Finished products		$	512		553
Raw materials and work in process		1,668			1,735
Total		$	2,180		2,288

In 2025, the Board of Directors of the Company adopted and shareholders approved the 2025 Employee Stock Purchase Plan (the “ESPP”), and the plan commenced on January 1, 2026. The ESPP permits eligible employees to purchase shares of common stock at a discount through payroll deductions with a maximum of 10 million shares of common stock available to be issued over the term of the plan. The shares purchasable under the ESPP shall be shares of authorized but unissued or reacquired common stock, including shares of common stock purchased on the open market.

Property, plant and equipment, net
Property, plant and equipment, at cost	$	6,185	6,271
Less: Accumulated depreciation	3,378		3,480
Total	$	2,807	2,791

Goodwill by business segment
Final Control	$	2,702	2,713
Measurement & Analytical	1,576		1,593
Discrete Automation	919		935
Safety & Productivity	404		415
Intelligent Devices	5,601		5,656
Control Systems & Software	9,003		9,038
Test & Measurement	3,463		3,464
Software and Control	12,466		12,502
Total	$	18,067	18,158

	Sept 30, 2024			June 30, 2025
Other intangible assets
Gross carrying amount		$	15,628		15,767
Less: Accumulated amortization		5,192			6,098
Net carrying amount		$	10,436		9,669

(13) BUSINESS SEGMENTS

~~Other~~On ~~intangible~~November ~~assets~~20, ~~include~~2025, ~~customer~~Emerson ~~relationships,~~announced ~~net,~~that with the completion of ~~$5,917~~the ~~and~~Company's $6portfolio transformation,~~296~~ ~~and~~it ~~intellectual~~has ~~property,~~revised ~~net,~~its ~~of $3,500~~management organization and ~~$3,901~~updated asits ofreportable ~~June 30,~~segments. ~~2025~~Effective ~~and~~in ~~September 30,~~fiscal ~~2024~~2026, ~~respectively~~Emerson now reports results for five segments which are described in further detail below. Prior year amounts have been reclassified to conform to the current year presentation.

	Three Months Ended June 30,			Nine Months Ended June 30,
	2024		2025	2024	2025
Depreciation and amortization expense include the following:
Depreciation expense	$	80	81	238	246
Amortization of intangibles (includes $49, $50, $147 and $149 reported in Cost of Sales, respectively)	313		269	958	826
Amortization of capitalized software	24		22	67	67
Total	$	417	372	1,263	1,139

The Control Systems & Software segment delivers a portfolio of automation systems, intelligent software and industrial AI solutions. This segment empowers industrial organizations worldwide to harness data, optimize performance and achieve operational excellence on the plant level and across the enterprise.

	Sept 30, 2024			June 30, 2025
Other assets include the following:
Pension assets		$	1,194		1,257
Operating lease right-of-use assets		692			638
Unbilled receivables (contract assets)		519			579
Deferred income taxes		64			55

Featuring market-leading brands and technologies – including DeltaV™ and Ovation™ control systems and AspenTech’s asset optimization software – this segment integrates advanced automation, edge-to-cloud analytics and AI. These solutions enable customers to make faster, smarter decisions, boost productivity and accelerate their digital transformation in complex environments. This segment also now includes programmable automation controllers, which were previously reported in the former Discrete Automation segment.

Accrued expenses include the following:
Customer advances (contract liabilities)	$	1,043	1,125
Employee compensation	706		684
Income taxes	587		126
Operating lease liabilities (current)	158		150
Product warranty	82		88

The Test & Measurement segment offers an integrated portfolio of intelligent test platforms, modular hardware and powerful software to accelerate innovation, reduce complexity and enhance product quality. With automated test solutions, the NI brand delivers flexible, AI-enabled tools that provide insights and adaptability for measurement and control challenges across diverse industries.

Other liabilities include the following:
Deferred income taxes	$	2,138	1,914
Operating lease liabilities (noncurrent)	511		488
Pension and postretirement liabilities	466		464

Featuring open software architectures, flexible hardware systems and expert services, Test & Measurement enables customers to connect data and automation, optimize testing processes and assist in reliable performance. By integrating advanced analytics and automation technologies, these solutions help companies drive efficiency and respond quickly to evolving demands.

The ~~(12)~~Control ~~DEBT~~Systems & Software and Test & Measurement segments are combined and reported as the Software & Systems group.

OnThe ~~February~~Sensors ~~11,~~segment ~~2025,~~(formerly ~~the~~described ~~Company~~as ~~entered~~Measurement ~~into~~& aAnalytical) $3delivers ~~billion~~leading ~~364-day~~sensing ~~revolving~~and ~~backup~~measurement ~~credit~~solutions ~~facility~~that toprovide ~~support~~real-time, ~~increased~~reliable ~~commercial~~data ~~paper~~for ~~borrowings in connection with~~ the ~~AspenTech transaction. This facility is in addition to the Company'~~world’s ~~existing~~most ~~$3.5~~essential ~~billion revolving backup credit facility~~applications. ~~Both~~Leveraging ~~credit~~innovative ~~facilities~~technologies ~~are unsecured~~ and ~~may~~trusted bebrands ~~accessed~~like ~~under~~Rosemount ~~various~~and ~~interest~~Micro ~~rate~~Motion, ~~alternatives at~~ the ~~Company's~~segment ~~option.~~helps ~~The~~customers ~~fees~~ to ~~maintain~~monitor ~~the~~critical ~~facilities~~parameters, ~~are~~optimize ~~immaterial~~operations and ~~the~~support ~~Company has not incurred any borrowings under either facility or previous facilities. Overall~~safer, ~~the~~more ~~Company's~~sustainable ~~commercial paper borrowings increased to approximately $5~~performance.~~4 billion at June 30, 2025.~~

With a comprehensive portfolio that includes secure, wireless and non-intrusive instrumentation, Emerson’s Sensors segment empowers organizations to detect, analyze and respond to changing conditions in even the harshest environments. By integrating advanced sensors with automation platforms and analytics, these solutions help customers unlock operational insights, ensure compliance and accelerate productivity at scale.

The Final Control segment is a leading supplier of valves, digital valve controllers, actuators and regulators engineered to excel in the most demanding conditions. Anchored by trusted brands like Fisher, ASCO and Bettis, the segment empowers customers to precisely manage the flow of liquids and gases for safer, more reliable and efficient operations. This segment also now includes the fluid & motion control business from the former Discrete Automation segment.

With solutions spanning control, isolation and pressure relief valves, as well as solenoid and pneumatic valves, valve position indicators, cylinders, air preparation equipment and electric linear motion, Final Control supports critical applications across a wide range of industries. By combining deep expertise with leading technologies, these solutions help customers optimize performance and drive long-term sustainability.

The Sensors and Final Control segments are combined and reported as the Intelligent Devices group.

The Safety & Productivity segment delivers innovative tools, connected equipment and technologies that empower professionals in the mechanical, electrical and plumbing industries. 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.

InRecently ~~June~~expanded ~~2025,~~to ~~the~~include ~~Company repaid $500 of 3.15% notes that matured. In March 2025,~~ the ~~Company~~electrical ~~issued~~equipment ~~€500 of 3.0% notes due March 2031, $500 of 5.0% notes due March 2035,~~ and ~~€500~~materials ofjoining ~~3.5%~~businesses ~~notes due March 2037. The Company used the net proceeds~~ from the ~~sale~~former ofDiscrete ~~the~~Automation ~~notes~~segment, ~~and~~Safety ~~increased~~& ~~commercial~~Productivity ~~paper~~combines ~~borrowings,~~rugged ~~along~~performance with ~~cash~~intelligent ondesign ~~hand,~~and toadvanced ~~fund the AspenTech transaction (see Note 4)~~connectivity.

~~(13)~~Summarized ~~FINANCIAL~~information ~~INSTRUMENTS~~about the Company's results of operations by business segment follows:

Hedging Activities – As of June 30, 2025, the notional amount of foreign currency hedge positions was approximately $3.2 billion. All derivatives receiving hedge accounting are cash flow hedges. The majority of hedging gains and losses deferred as of June 30, 2025 are expected to be recognized over the next 12 months as the underlying 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.


	Three Months Ended December 31,
	2024
	Control Systems & Software		Test & Measurement	Software & Systems	Sensors	Final Control	Intelligent Devices	Safety & Productivity
Net Sales	$	1,023	359	1,382	972	1,334	2,306	487
Cost of sales	451		89	540	424	698	1,122	276
Selling, general and administrative expenses	277		175	452	260	298	558	110
Other deductions, net	87		108	195	3	33	36	5
Earnings (Loss)	$	208	(13)	195	285	305	590	96

Net Investment Hedge – In fiscal 2019, the Company issued euro-denominated debt of €1.5 billion, of which €500 was repaid in 2024. Additionally, in March 2025, the Company issued €500 of 3.0% notes due March 2031 and €500 of 3.5% notes due March 2037. The net proceeds from the sale of the March 2025 euro notes were used for general corporate purposes and to fund a portion of the purchase price of the AspenTech transaction (see Note 4). The euro notes reduce foreign currency risk associated with the Company's international subsidiaries that use the euro as their functional currency and have been designated as a hedge of a portion of the investment in these operations. Foreign currency gains or losses associated with the euro-denominated debt are deferred in accumulated other comprehensive income (loss) and will remain until the hedged investment is sold or substantially liquidated.


	Three Months Ended December 31,
	2025
	Control Systems & Software		Test & Measurement	Software & Systems	Sensors	Final Control	Intelligent Devices	Safety & Productivity
Net Sales	$	1,044	409	1,453	996	1,394	2,390	503
Cost of sales	481		103	584	445	722	1,167	285
Selling, general and administrative expenses	277		184	461	270	313	583	112
Other deductions, net	54		108	162	15	28	43	9
Earnings (Loss)	$	232	14	246	266	331	597	97

		Into Earnings					Into OCI
		3rd Quarter			Nine Months		3rd Quarter		Nine Months
Gains (Losses)	Location	2024		2025	2024	2025	2024	2025	2024	2025
Foreign currency	Sales	—		1	—	5	5	(7)	7	5
Foreign currency	Cost of sales	3		—	9	(1)	(10)	7	(3)	11
Foreign currency	Other deductions, net	(12)		29	(23)	(4)
Net Investment Hedges
Euro denominated debt		$	—	—	—	—	25	(134)	(27)	(138)
Total		$	(9)	30	(14)	—	20	(134)	(23)	(122)

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

Regardless of whether derivatives and non-derivative financial instruments receive hedge accounting, the Company expects hedging gains or losses to be offset by losses or gains on the related underlying exposures. 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 assessment of hedge effectiveness.


	Earnings (Loss)
	Three Months Ended December 31,
	2024		2025
Segment Totals	$	881	940

Corporate items:
Stock compensation	(68)		(55)
Unallocated pension and postretirement costs	27		29
Corporate and other	(57)		(49)
Interest expense, net	(8)		(90)
Total	$	775	775

~~Fair~~Stock ~~Value~~compensation ~~Measurement – Valuations~~ for ~~all derivatives and~~ the ~~Company's~~three ~~long-term~~months ~~debt~~ended ~~fall~~December ~~within Level 2 of the GAAP valuation hierarchy. As of June 30~~31, 2025, ~~the~~included ~~fair~~$4 ~~value~~ of ~~long~~integration-~~term~~related ~~debt~~stock ~~was~~compensation ~~approximately $8~~expense.1 ~~billion,~~Corporate ~~which~~and ~~was~~other ~~lower~~for ~~than~~ the ~~carrying~~three ~~value~~months byended ~~$766. The fair value of foreign currency contracts~~December 31, ~~which~~2025 ~~are~~included ~~reported~~acquisition/divestiture infees ~~Other current assets~~ and ~~Accrued~~related ~~expenses,~~costs ~~did~~of ~~not~~$7 ~~materially~~compared ~~change~~to ~~since~~$22 ~~September~~in ~~30,~~the ~~2024.~~prior year.

Counterparties to derivatives arrangements are companies with investment-grade credit ratings. The Company has bilateral collateral arrangements with counterparties with credit rating-based posting thresholds that vary depending on the arrangement. If credit ratings on the Company's debt fall below pre-established levels, counterparties can require immediate full collateralization of all derivatives in net liability positions. The maximum amount that could potentially have been required was immaterial. 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 June 30, 2025.

~~(14)~~Additional ~~ACCUMULATED~~segment ~~OTHER~~financial ~~COMPREHENSIVE~~information ~~INCOME~~is ~~(LOSS)~~presented in the tables below:

Activity in Accumulated other comprehensive income (loss) for the three and nine months ended June 30, 2025 and 2024 is shown below, net of income taxes:
	Total Assets					Depreciation and Amortization
	Three Months Ended June 30,							Nine Months Ended June 30,
	As of December 31,					Three Months Ended December 31,
	2024		~~2024~~		2025	~~2025~~2024		2025	~~2024~~	~~2025~~
Foreign currency translation
Control Systems & Software	$	16,036			15,995	$	149	122
Beginning balance			$	(834)		(914)			(1,012)	(616)
Test & Measurement	8,964				8,722	118		119
Other comprehensive income (loss), net of tax of $(6), $31, $6 and $32, respectively			(122)			297			33	(4)
Software & Systems	25,000				24,717	267		241
Purchase of noncontrolling interest			—			—			—	3
Sensors	3,995				4,209	31		33
Reclassification to loss on divestiture of business			—			—			23	—
Final Control	7,146				7,541	55		56
Ending balance			(956)			(617)			(956)	(617)
Intelligent Devices	11,141				11,750	86		89
Pension and postretirement
Safety & Productivity	1,779				1,887	19		19
Beginning balance			(271)			(239)			(247)	(245)
Corporate and other	4,690				3,585	11		10
Amortization of deferred actuarial losses into earnings, net of tax of $2, $0, $6 and $(2), respectively			(12)			4			(36)	10
Total	$	42,610			41,939	$	383	359
Ending balance			(283)			(235)			(283)	(235)
Cash flow hedges
Beginning balance			8			3			6	(7)
Gains deferred during the period, net of taxes of $1, $0, $(1) and $(4), respectively			(4)			—			3	12
Reclassification of realized (gains) losses to sales and cost of sales, net of tax of $1, $—, $2 and $1, respectively			(2)			(1)			(7)	(3)
Ending balance			2			2			2	2
Accumulated other comprehensive income (loss)			$	(1,237)		(850)			(1,237)	(850)

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,
	2024						2025
		Americas		AMEA	Europe	Total	Americas	AMEA	Europe	Total
Control Systems & Software		$	494	303	226	1,023	504	293	247	1,044
Test & Measurement		175		93	91	359	186	117	106	409
Software & Systems		669		396	317	1,382	690	410	353	1,453

Sensors		485		338	149	972	492	338	166	996
Final Control		613		488	233	1,334	650	470	274	1,394
Intelligent Devices		1,098		826	382	2,306	1,142	808	440	2,390

Safety & Productivity		357		53	77	487	369	55	79	503


Total		$	2,124	1,275	776	4,175	2,201	1,273	872	4,346

(15) BUSINESS SEGMENTS

As disclosed in Note 4, on March 12, 2025, Emerson completed its purchase of the remaining outstanding shares of common stock of AspenTech not already owned by the Company. As a result of the transaction, AspenTech is now a wholly owned subsidiary of the Company. AspenTech was reorganized upon completion of the transaction and now reports to Control Systems & Software leadership. AspenTech's results, which were previously reported as a separate segment, are now consolidated into the Control Systems & Software segment for all periods presented. Prior year amounts have been reclassified to conform to the current year presentation. In 2024, the Company completed the acquisition of NI on October 11, 2023. NI is now referred to as Test & Measurement and reported as a segment in the Software and Control business group.

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

	Three Months Ended June 30,					Nine Months Ended June 30,
	Sales			Earnings (Loss)		Sales		Earnings (Loss)
	2024		2025	2024	2025	2024	2025	2024	2025
Final Control	$	1,046	1,116	253	267	3,037	3,165	706	770
Measurement & Analytical	982		1,014	252	246	2,942	2,992	761	796
Discrete Automation	618		649	109	118	1,863	1,844	322	333
Safety & Productivity	351		346	79	73	1,038	996	230	216
Intelligent Devices	2,997		3,125	693	704	8,880	8,997	2,019	2,115
Control Systems & Software	1,043		1,083	217	267	2,940	3,138	474	713
Test & Measurement	355		361	(88)	(26)	1,104	1,079	(245)	(63)
Software and Control	1,398		1,444	129	241	4,044	4,217	229	650
Stock compensation				(56)	(71)			(203)	(198)
Unallocated pension and postretirement costs				38	27			107	82
Corporate and other				(38)	(72)			(540)	(366)
Loss on Copeland note receivable				(279)	—			(279)	—
Gain on subordinated interest				—	—			79	—
Eliminations/Interest	(15)		(16)	(56)	(95)	(51)	(53)	(157)	(145)
Interest income from related party				24	—			86	—
Total	$	4,380	4,553	455	734	12,873	13,161	1,341	2,138

Stock compensation for the three and nine months ended June 30, 2025 included $24 and $30, respectively, of integration-related stock compensation expense attributable to AspenTech (of which $20 and $21, respectively, was reported as restructuring costs). Additionally, the three and nine months ended June 30, 2025 included $2 and $7, respectively, of integration-related stock compensation expense attributable to NI. Stock compensation for the three and nine months ended June 30, 2024 included $9 and $53, respectively, of integration-related stock compensation expense attributable to NI (of which $5 and $41, respectively, was reported as restructuring costs). Corporate and other for the three and nine months ended June 30, 2025 included acquisition/divestiture fees and related costs of $38 and $216, respectively. Corporate and other for the three and nine months ended June 30, 2024 included acquisition/divestiture fees and related costs of $13 and $159, respectively, while year-to-date also included acquisition-related inventory step-up amortization of $231 and a divestiture loss of $39.

Depreciation and amortization (includes intellectual property, customer relationships and capitalized software) by business segment are summarized below:

	Three Months Ended June 30,				Nine Months Ended June 30,
		2024		2025		2024	2025
Final Control		$	41	39		120	120
Measurement & Analytical		32		32		105	95
Discrete Automation		22		22		65	64
Safety & Productivity		14		15		43	45
Intelligent Devices		109		108		333	324
Control Systems & Software		148		134		444	427
Test & Measurement		150		119		454	356
Software and Control		298		253		898	783
Corporate and other		10		11		32	32
Total		$	417	372		1,263	1,139

Test & Measurement depreciation and amortization for the three and nine months ended June 30, 2024 included backlog amortization of $34 and $102, respectively.

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

	Three Months Ended June 30,						Three Months Ended June 30,
	2024						2025
		Americas		AMEA	Europe	Total	Americas	AMEA	Europe	Total
Final Control		$	509	398	139	1,046	561	410	145	1,116
Measurement & Analytical		488		345	149	982	510	351	153	1,014
Discrete Automation		294		154	170	618	319	161	169	649
Safety & Productivity		262		18	71	351	265	18	63	346
Intelligent Devices		1,553		915	529	2,997	1,655	940	530	3,125
Control Systems & Software		493		299	251	1,043	537	320	226	1,083
Test & Measurement		160		98	97	355	165	96	100	361
Software and Control		653		397	348	1,398	702	416	326	1,444
Total		$	2,206	1,312	877	4,395	2,357	1,356	856	4,569
	Nine Months Ended June 30,						Nine Months Ended June 30,
	2024						2025
		Americas		AMEA	Europe	Total	Americas	AMEA	Europe	Total
Final Control		$	1,476	1,172	389	3,037	1,587	1,191	387	3,165
Measurement & Analytical		1,475		1,004	463	2,942	1,492	1,044	456	2,992
Discrete Automation		874		477	512	1,863	896	459	489	1,844
Safety & Productivity		774		53	211	1,038	766	48	182	996
Intelligent Devices		4,599		2,706	1,575	8,880	4,741	2,742	1,514	8,997
Control Systems & Software		1,400		858	682	2,940	1,516	930	692	3,138
Test & Measurement		486		295	323	1,104	496	290	293	1,079
Software and Control		1,886		1,153	1,005	4,044	2,012	1,220	985	4,217
Total		$	6,485	3,859	2,580	12,924	6,753	3,962	2,499	13,214

(16) SUBSEQUENT EVENTS

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law. The OBBBA extends certain key elements of the 2017 Tax Cuts and Jobs Act including provisions related to bonus depreciation and domestic research and development, among others. The Company is currently assessing the impact of the OBBBA on its consolidated financial statements, but does not expect the OBBBA to have a material impact in the current fiscal year.

Items 2 and 3.

Management's Discussion and Analysis of Financial Condition and Results of Operations

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

OVERVIEW

OnFor ~~March 12, 2025, Emerson completed its purchase of~~ the ~~remaining~~first ~~outstanding~~quarter ~~shares~~ of ~~common~~fiscal ~~stock~~2026, ofnet ~~AspenTech~~sales ~~not~~were ~~already owned by the Company for approximately~~ $74.23 billion~~. As a result of the transaction~~, ~~AspenTech~~up is4 ~~now~~percent acompared ~~wholly~~with ~~owned subsidiary of~~ the ~~Company.~~prior ~~AspenTech was reorganized upon completion of the transaction and now reports to Control Systems & Software leadership~~year. ~~AspenTech's~~Underlying ~~results~~sales, which ~~were~~exclude ~~previously~~foreign ~~reported~~currency astranslation, aacquisitions ~~separate~~and ~~segment~~divestitures, ~~are~~were ~~now~~up ~~consolidated~~2 ~~into~~percent. ~~the~~Foreign ~~Control~~currency ~~Systems~~translation &had ~~Software~~a ~~segment~~2 ~~for~~percent ~~all~~favorable ~~periods presented~~impact. ~~See Notes 4 and 15.~~

~~For~~Earnings ~~the~~attributable ~~third~~to ~~quarter~~common ofstockholders ~~fiscal~~were ~~2025~~$605, ~~Emerson~~up ~~consolidated~~3 ~~net~~percent, ~~sales~~and diluted earnings per share were $41.~~6 billion~~07, up 45 percent compared with $1.02 in the prior year. ~~Underlying~~Adjusted ~~sales,~~diluted ~~which~~earnings ~~exclude~~per ~~foreign~~share ~~currency~~were ~~translation~~$1.46, ~~acquisitions and divestitures, were~~ up 36 percent. ~~Foreign~~compared ~~currency~~with ~~translation had a~~ $1.38 ~~percent~~in ~~favorable~~the ~~impact.~~prior year.

~~Earnings~~The ~~from~~table ~~continuing~~below ~~operations~~presents ~~attributable~~the toCompany's ~~common stockholders were $580, up 68 percent, and~~ diluted earnings per share ~~from~~on ~~continuing~~an ~~operations~~adjusted ~~were~~basis ~~$1.03,~~to upfacilitate 72period-to-period ~~percent~~comparisons ~~compared~~and ~~with~~provide ~~$0.60~~additional ininsight into the ~~prior~~underlying, ~~year.~~ongoing ~~The~~operating ~~prior~~performance ~~year included a pretax loss~~ of ~~$279 ($217 after-tax, $0.38 per share) related to~~ the Company~~'s definitive agreement to sell its Copeland note receivable for $1~~.9 ~~billion (see Note 10).~~ Adjusted diluted earnings per share ~~from~~excludes ~~continuing~~intangibles ~~operations~~amortization ~~were $1.52~~expense, uprestructuring 6expense, ~~percent~~first ~~compared~~year ~~with~~purchase ~~$1.43~~accounting inrelated ~~the~~items ~~prior~~and ~~year~~transaction-related costs, ~~reflecting~~discrete ~~sales~~taxes, ~~growth~~ and ~~strong~~certain ~~operating~~gains, ~~performance~~losses or impairments.

The table below presents the Company's diluted earnings per share from continuing operations 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 from continuing operations excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, and certain gains, losses or impairments.


Three Months Ended Dec 31	2024		2025

Diluted earnings per share	$	1.02	1.07

Amortization of intangibles	0.31		0.35
Restructuring and related costs	0.02		0.02
Acquisition/divestiture fees and related costs	0.03		0.01
Discrete taxes	—		0.01

Adjusted diluted earnings per share	$	1.38	1.46

Three Months Ended June 30,	2024		2025
Diluted earnings from continuing operations per share	$	0.60	1.03
Amortization of intangibles	0.35		0.37
Restructuring and related costs	0.08		0.06
Acquisition/divestiture fees and related costs	0.02		0.06
Loss on Copeland note receivable	0.38		—
Adjusted diluted earnings from continuing operations per share	$	1.43	1.52

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.

The table below summarizes the changes in adjusted diluted earnings per share from continuing operations. The items identified below are discussed throughout MD&A, see further discussion above and in the Business Segments and Financial Condition sections below.


	Three Months Ended
Adjusted diluted earnings per share - Dec 31, 2024	$	1.38

Operations	0.10
Impact of software renewals	(0.06)

Foreign currency	0.01


Effective tax rate	0.02
Share count	0.02
Other	(0.01)

Adjusted diluted earnings per share - Dec 31, 2025	$	1.46

	Three Months Ended
Adjusted diluted earnings from continuing operations per share - June 30, 2024	$	1.43
Operations	0.09
Foreign currency	(0.02)
Pension	(0.02)
Share count	0.03
Other	0.01
Adjusted diluted earnings from continuing operations per share - June 30, 2025	$	1.52

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
(dollars in millions, except per share amounts)

Net sales	$	4,175		4,346		4	%
Gross profit	$	2,235		2,311		3	%
Percent of sales	53.5		%	53.2	%	(0.3) pts

SG&A	$	1,224		1,242		2	%
Percent of sales	29.3		%	28.6	%	(0.7) pts





Other deductions, net	$	228		204
Amortization of intangibles	$	229		205
Restructuring costs	$	11		9

Interest expense, net	$	8		90

Earnings before income taxes	$	775		775		—	%
Percent of sales	18.6		%	17.8	%	(0.8) pts
Earnings common stockholders	$	585		605		3	%
Percent of sales	14.0		%	13.9	%	(0.1) pts
Net earnings common stockholders	$	585		605		3	%


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. Underlying sales were up 6 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 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 0.9 percentage points.

Selling, general and administrative (SG&A) expenses 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. 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.

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 compared with $1.38 in the prior year, reflecting strong operating results. See the analysis above of adjusted earnings per share for further details.

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. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, and certain gains, losses or impairments. 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

Earnings before income taxes	$	775		775		—	%
Percent of sales	18.6		%	17.8	%	(0.8) pts
Interest expense, net	8			90
Amortization of intangibles	278			254
Restructuring and related costs	13			11
Acquisition/divestiture fees and related costs	22			11
Adjusted EBITA	$	1,096		1,141		4	%
Percent of sales	26.3		%	26.3	%	‒ pts

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. The Company defines segment earnings as earnings before interest and taxes. See Note 13 for a discussion of the Company's business segments.

SOFTWARE & SYSTEMS


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


Sales:
Control Systems & Software	$	1,023		1,044		2	%	(2)	%	—	%	—	%
Test & Measurement	359			409		14	%	(3)	%	—	%	11	%
Total	$	1,382		1,453		5	%	(2)	%	—	%	3	%

Earnings:
Control Systems & Software	$	208		232		12	%
Test & Measurement	(13)			14		212	%
Total	$	195		246		26	%
Margin	14.1		%	17.0	%	2.9 pts

Amortization of intangibles:
Control Systems & Software	$	127		101
Test & Measurement	105			107
Total	$	232		208

Restructuring and related costs:
Control Systems & Software	$	2		1
Test & Measurement	(1)			—
Total	$	1		1

Adjusted EBITA	$	428		455		6	%
Adjusted EBITA Margin	31.1		%	31.3	%	0.2 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.

~~RESULTS~~INTELLIGENT ~~OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30~~ DEVICES

	2024			2025		Change
Three Months Ended Dec 31	2024			2025		Change		FX		Acq/Div		U/L
(dollars in millions, except per share amounts)
Sales:
Net sales	$	4,380		4,553		4	%
Sensors	$	972		996		2	%	(1)	%	—	%	1	%
Gross profit	$	2,314		2,393		3	%
Final Control	1,334			1,394		4	%	(2)	%	—	%	2	%
Percent of sales	52.8		%	52.6	%	(0.2) pts
Total	$	2,306		2,390		4	%	(2)	%	—	%	2	%
SG&A	$	1,254		1,266		1	%
Earnings:
Percent of sales	28.6		%	27.8	%	(0.8) pts
Sensors	$	285		266		(7)	%
Loss on Copeland note receivable	$	279		—
Final Control	305			331		9	%
Other deductions, net	$	294		298
Total	$	590		597		1	%
Amortization of intangibles	$	264		219
Margin	25.6		%	25.0	%	(0.6) pts
Restructuring costs	$	57		37
Amortization of intangibles:
Interest expense, net	$	56		95
Sensors	$	10		11
Interest income from related party	$	(24)		—
Final Control	29			28
Earnings from continuing operations before income taxes	$	455		734		61	%
Total	$	39		39
Percent of sales	10.4		%	16.1	%	5.7 pts
Restructuring and related costs:
Earnings from continuing operations common stockholders	$	344		580		68	%
Sensors	$	1		5
Percent of sales	7.9		%	12.7	%	4.8 pts
Final Control	7			2
Net earnings common stockholders	$	329		586		78	%
Total	$	8		7
Diluted EPS - Earnings from continuing operations	$	0.60		1.03		72	%
Adjusted EBITA	$	637		643		1	%
Diluted EPS - Net earnings	$	0.57		1.04		82	%
Adjusted EBITA Margin	27.6		%	26.9	%	(0.7) pts
Adjusted Diluted EPS - Earnings from continuing operations	$	1.43		1.52		6	%

~~Net~~Intelligent Devices sales ~~for~~were $2,390 in the ~~third~~first quarter of ~~fiscal~~2026, ~~2025~~an ~~were~~increase ~~$4.6~~of ~~billion~~$84, upor 4 percent. ~~compared~~Underlying ~~with~~sales ~~2024.~~increased ~~Intelligent~~2 ~~Devices~~percent ~~sales~~on ~~were~~3 uppercent 4higher ~~percent~~price, ~~while~~offset ~~Software~~by ~~and~~1 ~~Control~~percent ~~sales~~lower ~~were~~volume. upUnderlying sales increased 3 percent. ~~Underlying~~in ~~sales~~the ~~were~~Americas, upEurope increased 3 percent onand ~~2.5~~Asia, ~~percent~~Middle ~~higher~~East ~~price~~& ~~and~~Africa ~~0.5~~was down 2 percent ~~higher~~(China ~~volume~~down 8 percent). ~~Foreign~~Sensors ~~currency~~sales ~~translation~~increased ~~had~~$24, aor 12 percent, ~~favorable~~reflecting ~~impact~~solid growth in Europe. ~~Underlying~~Sales ~~sales~~for ~~were~~Final upControl 10increased $60, or 4 percent, reflecting strong growth in the ~~U.S.~~Americas and ~~down~~solid 2growth ~~percent~~in ~~internationally~~Europe, with strength in power. ~~The~~Earnings ~~Americas~~for ~~was~~Intelligent upDevices were $597, an increase of $7, or 1 percent, ~~Europe~~while ~~was~~margin ~~down~~decreased 70.6 percentage points to 25.0 percent, reflecting unfavorable foreign currency transaction comparisons, deleverage on lower volume and ~~Asia~~unfavorable mix, ~~Middle~~partially ~~East~~offset &by ~~Africa~~favorable ~~was~~price upless 2net ~~percent~~material ~~(China~~inflation. Adjusted EBITA margin was ~~flat)~~26.9 percent, a decrease of 0.7 percentage points.

Cost of sales for the third quarter of fiscal 2025 were $2,160, an increase of $94 compared with 2024, while gross margin of 52.6 percent decreased 0.2 percentage points. Tariffs, net of targeted price actions, had an immaterial impact on gross profit, but diluted margins by approximately 0.6 percentage points, while favorable price less net material inflation was partially offset by unfavorable mix.

Selling, general and administrative (SG&A) expenses of $1,266 increased $12 and SG&A as a percent of sales decreased 0.8 percentage points to 27.8 percent compared with the prior year, reflecting savings from cost reduction actions (primarily at Test & Measurement and AspenTech).

Other deductions, net were $298 for the third quarter of fiscal 2025, an increase of $4 compared with the prior year. The increase was due to higher acquisition/divestiture costs related to the AspenTech transaction and higher foreign currency transaction losses, partially offset by backlog amortization of $34 in the prior year related to the Test & Measurement acquisition. See Note 7.

Pretax earnings from continuing operations of $734 increased $279, up 61 percent compared with the prior year, reflecting the pretax loss of $279 recognized in the prior year related to the Company's definitive agreement to sell its Copeland note receivable for $1.9 billion. Earnings increased $11 in Intelligent Devices and increased $112 in Software and Control. See the Business Segments discussion that follows and Note 15.

~~Income~~SAFETY ~~taxes~~& were $154 in the third quarter of fiscal 2025 and $88 in 2024, resulting in effective tax rates of 21 percent and 19 percent, respectively. The prior year rate reflected a 3 percentage point benefit from return-to-provision adjustments related to the filing of the prior year U.S. tax return, partially offset by other individually immaterial items. PRODUCTIVITY

Earnings from continuing operations attributable to common stockholders were $580, up 68 percent, and diluted earnings per share from continuing operations were $1.03, up 72 percent compared with $0.60 in the prior year. Adjusted diluted earnings per share from continuing operations were $1.52 compared with $1.43 in the prior year, up 6 percent, reflecting strong operating results. See the analysis above of adjusted earnings per share for further details.


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



Sales	$	487		503		3	%	(2)	%	—	%	1	%

Earnings	$	96		97		1	%
Margin	19.7		%	19.2	%	(0.5) pts

Amortization of intangibles	$	7		7

Restructuring and related costs	$	1		1

Adjusted EBITA	$	104		105		1	%
Adjusted EBITA Margin	21.3		%	20.9	%	(0.4) pts

~~Earnings~~Safety ~~(Loss)~~& ~~from~~Productivity ~~discontinued~~sales ~~operations~~ were $6503 (in the first quarter of 2026, an increase of $~~0.01~~16, ~~per~~or ~~share)~~3 ~~for~~percent compared to the ~~third~~prior ~~quarter~~year. ofUnderlying ~~fiscal~~sales ~~2025~~were up 1 percent on 5 percent higher price offset by 4 percent lower volume. Underlying sales increased 3 percent in the Americas and ~~$(15)~~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.~~03)~~5 ~~per~~percentage ~~share)~~points, inreflecting deleverage on lower volume, offset by higher price less net material inflation and the ~~prior~~impact ~~year~~of tariffs, and savings from cost reduction actions. ~~See~~Adjusted ~~Note~~EBITA 5margin decreased 0.4 percentage points.

Net earnings common stockholders in the third quarter of fiscal 2025 were $586 compared with $329 in the prior year, and earnings per share were $1.04 compared with $0.57 in the prior year.

The table below, which shows results from continuing operations on an adjusted EBITA basis, is intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted EBITA as earnings from continuing operations excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, and certain gains, losses or impairments. 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 June 30,	2024			2025		Change
Earnings from continuing operations before income taxes	$	455		734		61	%
Percent of sales	10.4		%	16.1	%	5.7 pts
Interest expense, net	56			95
Interest income from related party	(24)			—
Amortization of intangibles	313			269
Restructuring and related costs	60			41
Acquisition/divestiture fees and related costs	17			44
Loss on Copeland note receivable	279			—
Adjusted EBITA from continuing operations	$	1,156		1,183		2	%
Percent of sales	26.4		%	26.0	%	(0.4) pts

Business Segments

Following is an analysis of operating results for the Company’s business segments for the third quarter ended June 30, 2025 compared with the third quarter ended June 30, 2024. The Company defines segment earnings as earnings before interest and taxes. See Note 15 for a discussion of the Company's business segments.

INTELLIGENT DEVICES

	2024			2025		Change		FX		Acq/Div		U/L
Sales:
Final Control	$	1,046		1,116		7	%	(2)	%	—	%	5	%
Measurement & Analytical	982			1,014		3	%	(1)	%	—	%	2	%
Discrete Automation	618			649		5	%	(2)	%	—	%	3	%
Safety & Productivity	351			346		(1)	%	(1)	%	—	%	(2)	%
Total	$	2,997		3,125		4	%	(1)	%	—	%	3	%
Earnings:
Final Control	$	253		267		5	%
Measurement & Analytical	252			246		(2)	%
Discrete Automation	109			118		9	%
Safety & Productivity	79			73		(7)	%
Total	$	693		704		2	%
Margin	23.1		%	22.5	%	(0.6) pts
Amortization of intangibles:
Final Control	$	21		22
Measurement & Analytical	11			11
Discrete Automation	9			8
Safety & Productivity	6			7
Total	$	47		48
Restructuring and related costs:
Final Control	$	5		3
Measurement & Analytical	3			2
Discrete Automation	16			6
Safety & Productivity	1			—
Total	$	25		11
Adjusted EBITA	$	765		763		—	%
Adjusted EBITA Margin	25.5		%	24.4	%	(1.1) pts

Intelligent Devices sales were $3.1 billion in the third quarter of 2025, an increase of $128, or 4 percent. Underlying sales increased 3 percent on 2.5 percent higher price and 0.5 percent higher volume. Underlying sales increased 7 percent in the Americas, Europe decreased 5 percent and Asia, Middle East & Africa was up 2 percent (China down 1 percent). Final Control sales increased $70, or 7 percent, reflecting strength in power end markets, particularly in the Americas. Sales for Measurement & Analytical increased $32, or 3 percent, reflecting mixed geographic results. Discrete Automation sales increased $31, or 5 percent, reflecting strength in the Americas and modest growth in Asia, Middle East & Africa, partially offset by continued softness in Europe. Safety & Productivity sales decreased $5, or 1 percent, due to softness in Europe, partially offset by modest growth in the Americas. Earnings for Intelligent Devices were $704, an increase of $11, or 2 percent, and margin decreased 0.6 percentage points to 22.5 percent, reflecting unfavorable foreign currency transactions and the impact of tariffs, partially offset by favorable price less net material inflation. Adjusted EBITA margin was 24.4 percent, decreasing 1.1 percentage points compared with the prior year, reflecting lower restructuring and related costs in the current year.

SOFTWARE AND CONTROL

	2024			2025		Change		FX		Acq/Div		U/L
Sales:
Control Systems & Software	$	1,043		1,083		4	%	(1)	%	—	%	3	%
Test & Measurement	355			361		2	%	(3)	%	—	%	(1)	%
Total	$	1,398		1,444		3	%	(1)	%	—	%	2	%
Earnings:
Control Systems & Software	$	217		267		23	%
Test & Measurement	(88)			(26)		70	%
Total	$	129		241		87	%
Margin	9.2		%	16.7	%	7.5 pts
Amortization of intangibles:
Control Systems & Software	$	127		114
Test & Measurement	139			107
Total	$	266		221
Restructuring and related costs:
Control Systems & Software	$	4		7
Test & Measurement	25			—
Total	$	29		7
Adjusted EBITA	$	424		469		11	%
Adjusted EBITA Margin	30.3		%	32.6	%	2.3 pts

Software and Control sales were $1.4 billion in the third quarter of 2025, an increase of $46, or 3 percent compared to the prior year. Underlying sales were up 2 percent on higher price. Underlying sales increased 8 percent in the Americas and 4 percent in Asia, Middle East & Africa (China up 1 percent), while Europe decreased 11 percent. Control Systems & Software sales increased $40, or 4 percent, reflecting growth in power end markets globally and process end markets in the Americas. Test & Measurement sales increased $6, or 2 percent, reflecting early signs of recovery in discrete end markets and mixed geographic results. Earnings for Software and Control increased $112, up 87 percent, and margin increased 7.5 percentage points, reflecting higher price, savings from cost reduction actions (primarily at Test & Measurement and AspenTech), and lower intangibles amortization and restructuring costs compared to the prior year. Adjusted EBITA margin increased 2.3 percentage points.

RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED JUNE 30

	2024			2025		Change
(dollars in millions, except per share amounts)
Net sales	$	12,873		13,161		2	%
Gross profit	$	6,514		7,000		7	%
Percent of sales	50.6		%	53.2	%	2.6 pts
SG&A	$	3,827		3,773		(1)	%
Percent of sales	29.7		%	28.7	%	(1.0) pts
Loss on Copeland note receivable	$	279		—
Gain on subordinated interest	$	(79)		—
Other deductions, net	$	1,075		944
Amortization of intangibles	$	811		677
Restructuring costs	$	170		70
Interest expense, net	$	157		145
Interest income from related party	$	(86)		—
Earnings from continuing operations before income taxes	$	1,341		2,138		59	%
Percent of sales	10.4		%	16.2	%	5.8 pts
Earnings from continuing operations common stockholders	$	1,060		1,650		56	%
Percent of sales	8.2		%	12.5	%	4.3 pts
Net earnings common stockholders	$	972		1,657		70	%
Diluted EPS - Earnings from continuing operations	$	1.84		2.91		58	%
Diluted EPS - Net earnings	$	1.69		2.92		73	%
Adjusted Diluted EPS - Earnings from continuing operations	$	4.01		4.38		9	%

Net sales for the first nine months of 2025 were $13.2 billion, up 2 percent compared with 2024. Intelligent Devices sales were up 1 percent, while Software and Control sales were up 4 percent. Underlying sales were up 2 percent on 1.5 percent higher price and 0.5 percent higher volume. Foreign currency translation had no impact. Underlying sales increased 4 percent in the U.S. and increased 1 percent internationally. The Americas was up 5 percent, Europe was down 4 percent and Asia, Middle East & Africa was up 3 percent (China was down 4 percent).

Cost of sales for 2025 were $6,161, a decrease of $198 versus $6,359 in 2024, and gross margin of 53.2 percent increased 2.6 percentage points, as the prior year reflected the impact from acquisition-related inventory step-up of $231, which negatively impacted margins in the prior year by 1.8 percentage points. Favorable price less net material inflation also contributed to the increase in gross margin.

SG&A expenses of $3,773 decreased $54 and SG&A as a percent of sales decreased 1.0 percentage points to 28.7 percent, reflecting savings from cost reduction actions.

In the third quarter of fiscal 2024, the Company recognized a pretax loss of $279 ($217 after-tax, $0.38 per share) related to the Company's definitive agreement to sell its Copeland note receivable for $1.9 billion.

In the second quarter of fiscal 2024, the Company received its final distribution of $79 related to its subordinated interest in Vertiv.

Other deductions, net were $944 in 2025, a decrease of $131 compared with the prior year, reflecting lower intangibles amortization expense of $134 (including $102 of backlog amortization related to the Test & Measurement acquisition) and lower restructuring expense of $100, partially offset by higher acquisition/divestiture fees and related costs. The prior year included a divestiture loss of $39.

Pretax earnings from continuing operations of $2,138 increased $797 compared with prior year. Earnings increased $96 in Intelligent Devices and increased $421 in Software and Control. See the Business Segments discussion that follows and Note 15.

Income taxes were $536 in the first nine of months of fiscal 2025 and $266 in 2024, resulting in effective tax rates of 25 percent and 20 percent, respectively. The current 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 3 percentage points. The prior year rate included a $57 ($0.10 per share) benefit related to discrete tax items and a benefit from return-to-provision adjustments related to the filing of the prior year U.S. tax return, partially offset by unfavorable impacts from inventory step-up amortization and the loss on divestiture (see Note 4), which was nondeductible for tax purposes. In total, the net impact of these items benefited the rate by approximately 2 percentage points, which was partially offset by other individually immaterial items.

Earnings from continuing operations attributable to common stockholders were $1,650, up 56 percent compared with the prior year, and diluted earnings per share from continuing operations were $2.91, up 58 percent compared with $1.84 in 2024. Adjusted diluted earnings per share from continuing operations were $4.38 compared with $4.01 in the prior year, up 9 percent. See the analysis below of adjusted earnings per share for further details.

Earnings (Loss) from discontinued operations were $7 ($0.01 per share) compared to $(88) ($(0.15) per share) in the prior year. See Note 5.

Net earnings common stockholders were $1,657 ($2.92 per share) compared with $972 ($1.69 per share) in the prior year.

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.

Nine Months Ended June 30,	2024		2025
Diluted earnings from continuing operations per share	$	1.84	2.91
Amortization of intangibles	1.07		1.00
Restructuring and related costs	0.25		0.12
Discrete taxes	(0.10)		0.09
Amortization of acquisition-related inventory step-up	0.38		—
Acquisition/divestiture fees and related costs	0.22		0.26
Loss on divestiture of business	0.07		—
Gain on subordinated interest	(0.10)		—
Loss on Copeland note receivable	0.38		—
Adjusted diluted earnings from continuing operations per share	$	4.01	4.38

	Nine Months Ended
Adjusted diluted earnings from continuing operations per share - June 30, 2024	$	4.01
Operations	0.45
Foreign currency	(0.03)
Pensions	(0.06)
Other	0.01
Adjusted diluted earnings from continuing operations per share - June 30, 2025	$	4.38

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.

Nine Months Ended June 30,	2024			2025		Change
Earnings from continuing operations before income taxes	$	1,341		2,138		59	%
Percent of sales	10.4		%	16.2	%	5.8 pts
Interest expense, net	157			145
Interest income from related party	(86)			—
Amortization of intangibles	958			826
Restructuring and related costs	180			81
Acquisition/divestiture fees and related costs	171			232
Loss on divestiture of business	39			—
Amortization of acquisition-related inventory step-up	231			—
Gain on subordinated interest	(79)			—
Loss on Copeland note receivable	279			—
Adjusted EBITA from continuing operations	$	3,191		3,422		7	%
Percent of sales	24.8		%	26.0	%	1.2 pts

Business Segments

Following is an analysis of operating results for the Company’s business segments for the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024. The Company defines segment earnings as earnings before interest and taxes. See Note 15 for a discussion of the Company's business segments.

INTELLIGENT DEVICES

	2024			2025		Change		FX		Acq/Div		U/L
Sales:
Final Control	$	3,037		3,165		4	%	—	%	—	%	4	%
Measurement & Analytical	2,942			2,992		2	%	—	%	—	%	2	%
Discrete Automation	1,863			1,844		(1)	%	—	%	—	%	(1)	%
Safety & Productivity	1,038			996		(4)	%	—	%	—	%	(4)	%
Total	$	8,880		8,997		1	%	—	%	—	%	1	%
Earnings:
Final Control	$	706		770		9	%
Measurement & Analytical	761			796		5	%
Discrete Automation	322			333		3	%
Safety & Productivity	230			216		(6)	%
Total	$	2,019		2,115		5	%
Margin	22.7		%	23.5	%	0.8 pts
Amortization of intangibles:
Final Control	$	65		64
Measurement & Analytical	43			33
Discrete Automation	26			24
Safety & Productivity	19			20
Total	$	153		141
Restructuring and related costs:
Final Control	$	5		6
Measurement & Analytical	7			5
Discrete Automation	33			17
Safety & Productivity	2			1
Total	$	47		29
Adjusted EBITA	$	2,219		2,285		3	%
Adjusted EBITA Margin	25.0		%	25.4	%	0.4 pts

Intelligent Devices sales were $9.0 billion in the first nine months of 2025, an increase of $117, or 1 percent. Underlying sales increased 1 percent on higher price. Underlying sales increased 4 percent in the Americas, Europe decreased 4 percent, and Asia, Middle East & Africa was up 2 percent (China down 4 percent). Final Control sales increased $128, or 4 percent, reflecting strength in power end markets. Sales for Measurement & Analytical increased $50, or 2 percent, reflecting mixed geographic results and difficult comparisons. Discrete Automation sales decreased $19, or 1 percent, reflecting softness in Europe and Asia, Middle East & Africa, partially offset by moderate growth in the Americas. Safety & Productivity sales decreased $42, or 4 percent, reflecting softness in all geographies. Earnings for Intelligent Devices were $2,115, an increase of $96, or 5 percent, and margin increased 0.8 percentage points to 23.5 percent, reflecting favorable price less net material inflation. Adjusted EBITA margin was 25.4 percent, an increase of 0.4 percentage points.

SOFTWARE AND CONTROL

	2024			2025		Change		FX		Acq/Div		U/L
Sales:
Control Systems & Software	$	2,940		3,138		7	%	—	%	—	%	7	%
Test & Measurement	1,104			1,079		(2)	%	—	%	—	%	(2)	%
Total	$	4,044		4,217		4	%	—	%	—	%	4	%
Earnings:
Control Systems & Software	$	474		713		50	%
Test & Measurement	(245)			(63)		74	%
Total	$	229		650		184	%
Margin	5.7		%	15.4	%	9.7 pts
Amortization of intangibles:
Control Systems & Software	$	386		367
Test & Measurement	419			318
Total	$	805		685
Restructuring and related costs:
Control Systems & Software	$	8		16
Test & Measurement	81			5
Total	$	89		21
Adjusted EBITA	$	1,123		1,356		21	%
Adjusted EBITA Margin	27.8		%	32.2	%	4.4 pts

Software and Control sales were $4,217 in the first nine months of 2025, an increase of $173, or 4 percent compared to the prior year. Underlying sales were up 4 percent on 2 percent higher volume and 2 percent higher price. Underlying sales increased 7 percent in the Americas and 6 percent in Asia, Middle East & Africa (China down 6 percent), while Europe decreased 3 percent. Control Systems & Software sales increased $198, or 7 percent, reflecting robust growth at AspenTech and favorable demand in process and power end markets across all geographies. Test & Measurement sales decreased $25, or 2 percent, reflecting softness in Europe partially offset by modest growth in the Americas. Earnings for Software and Control increased $421, up 184 percent, and margin increased 9.7 percentage points, reflecting leverage on higher Control Systems & Software sales, higher price, savings from cost reduction actions (primarily at Test & Measurement), lower intangibles amortization, and lower restructuring and related costs compared to the prior year. Adjusted EBITA margin increased 4.4 percentage points.

FINANCIAL CONDITION

Key elements of the Company's financial condition ~~as of and~~ for the ~~nine~~three months ended ~~June~~December 3031, 2025 as compared to the year ended September 30, ~~2024~~2025 and the ~~nine~~three months ended ~~June~~December 3031, 2024 follow.

	June 30, 2024			Sept 30, 2024			June 30, 2025
	Dec 31, 2024			Sept 30, 2025			Dec 31, 2025
Operating working capital	$	1,~~921~~468		$	12,~~394~~039		$	2,~~074~~407
Current ratio	1.25			10.89			0.8
Total debt-to-total capital	3227.71		%	2639.23		%	4139.78		%
Net debt-to-net capital	2718.39		%	1536.92		%	3736.75		%
Interest coverage ratio	810.50		X	78.26		X	97.69		X

~~The~~Operating ~~change in operating~~ working capital increased slightly compared to September 30, ~~2024~~2025. ~~was~~The ~~due~~current toratio ~~the~~decreased ~~payment~~slightly ofcompared ~~income~~to ~~taxes~~September of30, ~~approximately~~2025. ~~$585~~The ininterest ~~the~~coverage ~~second~~ratio ~~quarter~~(earnings ofbefore ~~fiscal~~income ~~2025~~taxes ~~related~~plus tointerest ~~the~~expense, ~~sale~~divided by interest expense) of 7.9X for the ~~Company's~~3 40months ~~percent~~ended ~~non-controlling~~December ~~common~~31, ~~equity~~2025 ~~interest~~compares into ~~Copeland~~10.0X ~~The~~for ~~current~~the ~~ratio~~3 ~~decreased~~months ~~compared~~ended toDecember ~~September 30~~31, 2024,. ~~reflecting~~The ~~the~~ decrease inreflects ~~cash~~higher ~~and~~interest ~~increase~~expense incompared ~~short-term borrowing~~ to ~~support~~ the ~~AspenTech~~prior ~~transaction~~year.

~~The~~Operating ~~interest~~cash ~~coverage~~flow ~~ratio~~for ~~(earnings~~the ~~before~~first ~~income~~three ~~taxes~~months ~~plus~~of ~~interest~~fiscal ~~expense~~2026 was $699, ~~divided~~a decrease of $78 compared with $777 in the prior year, reflecting an increase in operating working capital, partially offset by ~~interest~~higher ~~expense)~~earnings. Free cash flow of ~~9.6X~~$602 ~~for~~in the 12first three months ~~ended~~of ~~June 30,~~fiscal ~~2025~~2026 ~~compares~~(operating cash flow of $699 less capital expenditures of $97) decreased $92 compared to ~~8.5X~~free ~~for~~cash flow of $694 in 2025 (operating cash flow of $777 less capital expenditures of $83), reflecting the 12decrease ~~months~~in ~~ended~~operating ~~June 30~~cash flow. Cash used in investing activities was $125, ~~2024~~and cash used in financing activities was $364, reflecting share repurchases of $250 and dividends. During the quarter, the Company repaid €500 of 1.25% euro notes that matured in October 2025.

~~The increase in the debt-to-capital ratios reflects increased short-term borrowings and long-term debt to fund the AspenTech transaction.~~ On February 11, 2025, the Company entered into a $3 billion, 364-day revolving backup credit facility to support increased commercial paper borrowings ~~in connection with the AspenTech transaction~~. ~~This~~The ~~facility~~Company isexpects ~~in addition~~ to ~~the~~enter ~~Company's~~into ~~existing~~a ~~$3.5~~new ~~billion~~364-day revolving backup credit facility. ~~Both~~with ~~credit~~a ~~facilities~~reduced ~~are~~capacity ~~unsecured~~prior ~~and may be accessed under various interest rate alternatives at the Company's option. The fees~~ to ~~maintain~~ the ~~facilities~~expiration ~~are~~of ~~immaterial and~~ the ~~Company~~current ~~has~~facility. ~~not~~This ~~incurred any borrowings under either~~ facility oris ~~previous~~in ~~facilities.~~addition ~~Overall,~~to the Company's ~~commercial~~existing ~~paper borrowings increased to approximately~~ $~~5.4 billion at June 30, 2025. In March 2025, the Company issued €500 of~~ 3.~~0% notes due March 2031, $500 of~~ 5~~.0%~~ ~~notes~~billion due March 2035, and €500 of 3.5% notes due March 2037. Although the Company's financial leverage and debt ratios are currently elevated compared to its historical levels, Emerson expects to retain its investmentfive-~~grade~~year ~~long-term~~revolving ~~debt~~backup ~~ratings.~~credit ~~Further,~~facility ~~the~~with ~~Company~~various ~~expects its leverage and debt ratios to improve through its strong operating cash flows and disciplined capital allocation~~banks, ~~including~~which awas ~~targeted~~entered ~~reduction~~into in ~~net~~February ~~debt of approximately $1 billion over the next 6-12 months~~2023.

~~Operating~~Emerson ~~cash~~maintains ~~flow~~a ~~from~~conservative ~~continuing~~financial ~~operations~~structure ~~for~~to ~~the~~provide ~~first nine months of fiscal 2025 was $2,664, an increase of $420 compared with $2,244 in~~ the ~~prior~~strength ~~year, reflecting higher earnings~~ and ~~favorable~~flexibility ~~changes~~necessary into ~~working~~achieve ~~capital.~~our ~~Free~~strategic ~~cash~~objectives ~~flow~~and ~~from~~has ~~continuing~~been ~~operations~~successful ~~of $2,401~~ in ~~the~~efficiently ~~first~~deploying ~~nine months of fiscal 2025 (operating~~ cash ~~flow~~where ofneeded ~~$2,664~~worldwide ~~less capital expenditures of $263) increased $408 compared~~ to ~~free~~fund ~~cash flow of $1~~operations,~~993~~ incomplete ~~2024~~acquisitions ~~(operating~~and ~~cash~~sustain ~~flow~~long-term ~~of $2,244 less capital expenditures of $251), reflecting the increase in operating cash flow~~growth. ~~Cash~~Emerson ~~used~~is in ~~investing~~a ~~activities~~strong ~~from~~financial ~~continuing operations was $393. Cash used by financing activities from continuing operations was $3~~position,~~019,~~ ~~reflecting~~with ~~the~~total ~~purchase~~assets of ~~the~~$42 ~~remaining~~billion ~~outstanding~~and ~~shares of~~ common ~~stock~~stockholders' ofequity ~~AspenTech not already owned by the Company for approximately $7.2 billion, share purchases~~ of $~~1.1~~20 billion ~~and dividends~~, and has the ~~repayment~~resources ofavailable ~~$500~~for ofreinvestment ~~3.15%~~in ~~notes~~existing ~~that matured~~businesses, ~~partially~~strategic ~~offset~~acquisitions byand ~~the~~managing ~~increase~~its incapital structure on a short- and long-term ~~debt discussed above~~basis.

~~Total~~FISCAL ~~cash~~2026 provided by operating activities was $2,088 including the impact of discontinued operations, and decreased $160 compared with $2,248 in the prior year. The decrease reflected higher operating cash flow from continuing operations, offset by $585 of income taxes paid in the second quarter related to the sale of the Company's 40 percent non-controlling common equity interest in Copeland. OUTLOOK

~~Emerson~~For ~~maintains~~fiscal ayear ~~conservative~~2026, ~~financial~~consolidated ~~structure~~net ~~designed~~sales toare ~~provide~~expected ~~the strength and flexibility necessary~~ to ~~achieve~~be ~~our~~up ~~strategic~~approximately ~~objectives~~5.5 ~~and~~percent, ~~has~~with ~~been~~underlying ~~successful~~sales inup ~~efficiently~~approximately ~~deploying~~4 ~~cash~~percent, ~~where~~excluding ~~needed~~a ~~worldwide~~1.5 topercent ~~fund~~favorable ~~operations,~~impact ~~complete~~from ~~acquisitions~~foreign ~~and~~currency ~~sustain long-term growth~~translation. ~~Emerson~~Earnings isper inshare aare ~~strong~~expected ~~financial~~to ~~position,~~be ~~with total assets of~~ $434.78 ~~billion~~to ~~and common stockholders' equity of~~ $~~20 billion~~4.93, ~~and~~while ~~has~~adjusted ~~the~~earnings ~~resources~~per ~~available~~share ~~for~~are ~~reinvestment~~expected into ~~existing~~be ~~businesses,~~$6.40 ~~strategic~~to ~~acquisitions~~$6.55 ~~and~~(see ~~managing~~the ~~its~~following ~~capital structure on a short- and long-term basis~~reconciliation).


Outlook for Fiscal 2026 Earnings Per Share						2026

Diluted earnings per share						$4.78 - $4.93

Amortization of intangibles						~ 1.38
Restructuring and related costs						~ 0.14
Acquisition/divestiture fees and related costs						~ 0.06
Discrete taxes						~ 0.04

Adjusted diluted earnings per share						$6.40- $6.55

~~FISCAL~~Operating ~~2025~~cash ~~OUTLOOK~~flow is expected to be $4.0 to $4.1 billion and free cash flow, which excludes projected capital spending of approximately $0.45 billion, is expected to be $3.5 to $3.6 billion. The fiscal 2026 outlook assumes returning approximately $2.2 billion to shareholders through approximately $1.0 billion of share repurchases and approximately $1.2 billion of dividend payments.

For fiscal year 2025, consolidated net sales from continuing operations are expected to be up approximately 3.5 percent, with underlying sales also up approximately 3.5 percent. Earnings per share are expected to be approximately $4.08, while adjusted earnings per share are expected to be approximately $6.00 (see the following reconciliation).21

Outlook for Fiscal 2025 Earnings Per Share	2025
Diluted earnings from continuing operations per share	$	4.08
Amortization of intangibles	~ 1.34
Restructuring and related costs	~ 0.22
Acquisition/divestiture fees and related costs	~ 0.27
Discrete taxes	~ 0.09
Adjusted diluted earnings from continuing operations per share	$	6.00

Statements in this report that are not strictly historical may be “forward-looking” statements, which represent management’s expectations, based on currently available information. Actual results, performance or achievements could differ materially from those expressed in any forward-looking statement. Any forward-looking statements in this report speak only as of the date of this report. 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. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

~~Operating~~Item ~~cash flow is expected to be approximately $~~3.6 ~~billion~~Quantitative and ~~free~~Qualitative ~~cash~~Disclosures ~~flow,~~About ~~which~~Market excludes projected capital spending of approximately $0.4 billion, is expected to be approximately $3.2 billion. The fiscal 2025 outlook assumes returning approximately $2.3 billion to shareholders through approximately $1.1 billion of share repurchases and approximately $1.2 billion of dividend payments. Risks

~~Statements~~There inhas ~~this~~been ~~report~~no ~~that~~significant ~~are~~change ~~not~~in ~~strictly~~our ~~historical~~exposure ~~may~~to bemarket ~~“forward-looking”~~risk ~~statements,~~during ~~which~~the ~~represent~~three ~~management’s~~months ~~expectations,~~ended ~~based~~December ~~on currently available information. Actual results~~31, ~~performance or achievements could differ materially from those expressed in any forward-looking statement~~2025. ~~Any~~For ~~forward-looking~~a ~~statements~~discussion ~~in this report speak only as~~ of ~~the~~our ~~date~~exposure ~~of this report. 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~~risk, ~~pricing,~~refer ~~protection~~to ofItem ~~intellectual property~~7A, ~~cybersecurity,~~"Quantitative ~~tariffs, competitive~~ and ~~technological~~Qualitative ~~factors,~~Disclosures ~~inflation,~~about ~~among~~Market ~~others, which are set forth in the “~~Risk ~~Factors” of Part I~~, ~~Item 1A, and the~~ "~~Safe~~ ~~Harbor~~contained ~~Statement"~~in ofour ~~Part II, Item 7, to the Company's~~ Annual Report on Form 10-K for the fiscal year ended September 30, ~~2024, "Risk Factors" of Part II - Other Information, Item 1A of the Company's Quarterly Report on Form 10-Q for the three-month period ended June 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.~~

Item 4. Controls and Procedures

The Company maintains a system of disclosure controls and procedures designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported in a timely manner. This system also is designed to ensure information is accumulated and communicated to management, including the Company's certifying officers, to allow timely decisions regarding required disclosure. Based on an evaluation performed, the certifying officers have concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report.

Notwithstanding the foregoing, there can be no assurance that the Company's disclosure controls and procedures will detect or uncover all failures of persons within the Company and its consolidated subsidiaries to report material information otherwise required to be set forth in the Company's reports.

There was no change in the Company's internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

2922

PART II. OTHER INFORMATION

Item 1A. Risk Factors

The following risks update the risk factors set forth in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2024. Please refer to Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2024, for other risks related to our business.

Our Substantial Sales Both in the U.S. and Abroad Subject Us to Economic Risk as Our Results of Operations May Be Adversely Affected by Changes in Government Regulations and Policies and Currency Fluctuations

We sell, manufacture, engineer and purchase products globally, with significant sales in both mature and emerging markets. We expect sales in non-U.S. markets to continue to represent a significant portion of our total sales. Our U.S. and international operations subject the Company to changes in government regulations and policies in a large number of jurisdictions around the world, including those related to trade, investments, taxation, exchange controls and repatriation of earnings. Changes in laws or policies (including their interpretations) governing the terms of foreign trade, trade restrictions or barriers, tariffs or taxes, trade protection measures, and retaliatory countermeasures, including on imports from countries where we manufacture products, could adversely impact our business and financial results. In addition, changes in the relative values of currencies occur from time to time and have affected our operating results and could do so in the future. While we monitor our exchange rate exposures and attempt to mitigate this exposure through hedging activities, this risk could adversely affect our operating results.

The recent changes in U.S. trade policy involving the application or increase of tariffs and the subsequent retaliatory measures against the U.S. have created a dynamic environment that may have a material adverse impact on our business. While we have deployed strategies to mitigate the impact of these dynamic trade policies, there is no assurance that we will be able to mitigate the full impact of all such tariffs, retaliatory tariffs or other trade policies that have or may develop in this rapidly changing environment. Increasing trade tensions and changes in trade policies have the potential to adversely impact our costs, the demand for our products, our supply chain and the global economy, which may have an adverse impact on our business, including operating and financial results and conditions.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Period	Total Number of SharesPurchased (000s)		Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (000s)		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (000s)
April 2025		262	$95.30		262	19,765
October 2025		1,055	$132.39		1,055	18,555
May 2025		—	$—		—	19,765
November 2025		590	$130.22		590	67,965
June 2025		—	$—		—	19,765
December 2025		248	$135.17		248	67,717
Total		~~262~~1,893	$95132.3008		~~262~~1,893	1967,~~765~~717

In ~~March~~November ~~2020~~2025, the Board of Directors authorized the purchase of 60up to 50 million shares. ~~and~~This ais ~~total~~in addition to the authorization approved by the Board in March 2020 for the purchase of ~~approximately~~up 19to 60 million shares.8 Approximately 67.7 million shares remain available ~~for~~at ~~purchase~~December ~~under~~31, ~~the authorization~~2025.

Item 5. Other Information

During the three-month period ended ~~June~~December 3031, 2025, none of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement.

Item 6. Exhibits

(a) Exhibits (Listed by numbers corresponding to the Exhibit Table of Item 601 in Regulation S-K).

10.1			Form of Special Performance-based Nonqualified Stock Option Agreement, filed herewith.
31			Certifications pursuant to Exchange Act Rule 13a-14(a).
32*			Certifications pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350.
32			Certifications pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350.
101.INS			Attached as Exhibit 101 to this report are the following documents formatted in iXBRL (Inline ~~eXtensible~~Extensible Business Reporting Language): (~~XBRL~~i) ~~Instance~~Consolidated ~~Document~~Statements –of Earnings for the ~~instance~~three ~~document~~months ~~does~~ended ~~not~~December ~~appear~~31, in2025 and 2024, (ii) Consolidated Statements of Comprehensive Income for the ~~Interactive~~three ~~Data~~months ~~File~~ended ~~because~~December ~~its~~31, ~~XBRL~~2025 ~~tags~~and ~~are~~2024, ~~embedded~~(iii) ~~within~~Consolidated Balance Sheets as of September 30, 2025 and December 31, 2025, (iv) Consolidated Statements of Equity for the ~~Inline~~three ~~XBRL~~months ~~document~~ended December 31, 2025 and 2024, (v) Consolidated Statements of Cash Flows for the three months ended December 31, 2025 and 2024, and (vi) Notes to Consolidated Financial Statements for the three months ended December 31, 2025 and 2024.
101.SCH			Inline XBRL Taxonomy Extension Schema Document
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*Furnished herewith.23

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EMERSON ELECTRIC CO.

/s/ M. J. Baughman

M. J. Baughman

Executive Vice President, Chief Financial Officer

and Chief Accounting Officer

(on behalf of the registrant and as Chief Financial Officer)

August 6, 2025

February 3, 2026

3224

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