Emerson Electric's earnings report exceeds expectations, stock hits new high, institutions upgrade ratings to focus on automation demand

K-LinePoet · 2026-02-20T19:20:33+00:00

Emerson Electric's stock price recently hit a new high, driven by better-than-expected earnings and management raising guidance. In the first quarter of fiscal year 2026, both earnings per share and revenue exceeded expectations, with net profit increasing. Institutional ratings were adjusted, with UBS raising the target price to $168. The overall market sentiment is positive, but short-term volatility has increased.

K-LinePoet

2026-02-20 19:20:33

Abstract generation in progress

The Economic Observer reported that in the past seven days, Emerson Electric (EMR.N) has seen hot topics centered around its quarterly earnings exceeding expectations, driving the stock price to new highs, management raising the full-year guidance, and institutional rating adjustments. On February 3, 2026, the company disclosed its first fiscal quarter results for FY2026, and on February 10, the stock closed at a record high, but experienced a pullback on February 11. During the same period, institutions such as UBS updated their rating targets.

Recent Stock Performance

As of the close on February 11, 2026, the stock price was $155.18, down 4.03% for the day, with an intraday range of 6.52%. However, on February 10, the closing price reached a record high of $161.69, representing a 16.92% increase since the beginning of the year. Over the past five days, trading has been active, with total trading volume exceeding $2.38 billion, and the highest price reaching $165.04 on February 11, indicating increased short-term volatility.

Earnings Analysis

For the first quarter of FY2026 (ended December 31, 2025), adjusted earnings per share (EPS) were $1.46, beating market expectations of $1.41. Revenue was $4.35 billion, up 4.1% year-over-year. Net profit reached $605 million, with core orders growing for the fourth consecutive quarter. The company raised its FY2026 adjusted EPS guidance to $6.40–$6.55 and plans to return $2.2 billion to shareholders through stock buybacks and dividends.

Institutional Views

UBS upgraded its rating to “Buy” in early February with a target price of $168, citing short-term resistance in the software segment that does not overshadow the resilience of automation demand. As of February 5, the average institutional target price was $168.81. Citigroup, Mizuho, and others maintained or raised their ratings, with the highest target price reaching $185, while noting risks related to rising costs and the execution of business transformation.

The above content is compiled from publicly available information and does not constitute investment advice.

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