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ST. LOUIS - Emerson (NYSE:EMR) announced plans to return $10 billion to shareholders through 2028 via share repurchases and increased dividends, the automation company revealed during its 2025 Investor Conference on Thursday. The $70.2 billion market cap company has an impressive track record of raising its dividend for 55 consecutive years, according to InvestingPro data, with a current dividend yield of 1.73%.
The company introduced new 2028 financial targets, including projected net sales of $21 billion, representing a 5% organic compound annual growth rate. Emerson also aims to achieve a 30% adjusted segment EBITA margin, expanding by 2.4 percentage points, and $8.00 adjusted earnings per share, reflecting a 10% compound annual growth rate. The company currently trades at a P/E ratio of 31.07, which InvestingPro analysis indicates is relatively high compared to its near-term earnings growth potential.
"With our successful transformation complete, Emerson is well positioned for the future," said President and CEO Lal Karsanbhai, according to a press release statement.
The automation leader expects to generate $12 billion in cumulative free cash flow from 2026 through 2028, with most of it allocated to shareholder returns.
Emerson’s updated through-the-cycle value creation framework targets 4-7% organic sales growth, 40% incremental margins, 10% adjusted EPS growth, and 18-20% free cash flow margin.
The company plans to capture growth from innovation across several key verticals including power, LNG, life sciences, semiconductors, and aerospace & defense, while driving margin expansion through price realization, operational excellence, and acquisition synergies.
Emerson also reaffirmed its fiscal 2026 first quarter and full-year outlook previously provided on November 5, 2025. For investors seeking deeper insights, InvestingPro offers a comprehensive Pro Research Report on Emerson, one of 1,400+ US equities covered with detailed analysis and actionable intelligence for smarter investment decisions.
In other recent news, Emerson Electric reported its fourth-quarter 2025 earnings, which showed mixed results. The company met analysts’ expectations with an earnings per share of $1.62. However, Emerson’s revenue fell short, recording $4.86 billion against the anticipated $4.9 billion. In addition to the earnings report, Emerson Electric announced a revision in its management organization and updated its reportable segments. This new structure, which includes five segments, will be effective starting in fiscal 2026. Furthermore, Emerson Electric’s board approved special performance-based stock option awards for top executives, including President and CEO Lal Karsanbhai and Executive Vice President and COO Ram Krishnan. Each executive received 350,000 stock options, divided into five tranches with varying exercise prices. These developments reflect ongoing changes within the company.
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