With EPS Growth And More, Emerson Electric (NYSE:EMR) Makes An Interesting Case

Simply Wall St

Sat, February 14, 2026 at 8:00 PM GMT+9 3 min read

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EMR

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It’s common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, ‘Long shots almost never pay off.’ While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Emerson Electric (NYSE:EMR). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Emerson Electric with the means to add long-term value to shareholders.

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Emerson Electric’s Earnings Per Share Are Growing

The market is a voting machine in the short term, but a weighing machine in the long term, so you’d expect share price to follow earnings per share (EPS) outcomes eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Emerson Electric has grown EPS by 18% per year, compound, in the last three years. If the company can sustain that sort of growth, we’d expect shareholders to come away satisfied.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Emerson Electric remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 3.6% to US$18b. That’s progress.

You can take a look at the company’s revenue and earnings growth trend, in the chart below. For finer detail, click on the image.

NYSE:EMR Earnings and Revenue History February 14th 2026

See our latest analysis for Emerson Electric

While we live in the present moment, there’s little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Emerson Electric?

Are Emerson Electric Insiders Aligned With All Shareholders?

Owing to the size of Emerson Electric, we wouldn’t expect insiders to hold a significant proportion of the company. But thanks to their investment in the company, it’s pleasing to see that there are still incentives to align their actions with the shareholders. We note that their impressive stake in the company is worth US$215m. This comes in at 0.3% of shares in the company, which is a fair amount of a business of this size. This still shows shareholders there is a degree of alignment between management and themselves.

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Does Emerson Electric Deserve A Spot On Your Watchlist?

You can’t deny that Emerson Electric has grown its earnings per share at a very impressive rate. That’s attractive. With EPS growth rates like that, it’s hardly surprising to see company higher-ups place confidence in the company through continuing to hold a significant investment. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it’s a good stock to follow. Don’t forget that there may still be risks. For instance, we’ve identified ** 2 warning signs for Emerson Electric** that you should be aware of.

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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