Emerson Electric Co. stock research
FY2026 Q2
Emerson Electric (EMR) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased compared with both the prior quarter and the same quarter one year earlier, while gross profit was higher than the prior quarter but unchanged from a year ago. Cost of revenue rose relative to both periods, and gross margin weakened slightly versus both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q2
Revenue increased compared with both the prior quarter and the same quarter one year earlier, while gross profit was higher than the prior quarter but unchanged from a year ago. Cost of revenue rose relative to both periods, and gross margin weakened slightly versus both the prior quarter and the year-ago quarter.
- Gross profit grew at a slower pace than revenue when compared with the prior quarter, and was flat year over year despite higher revenue, indicating that cost of revenue absorbed a larger share of sales. The strongest observable driver is the relationship between revenue growth and cost growth, with cost increasing more than revenue on a sequential basis.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue was higher, gross profit was unchanged, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.1%
Gross profit
$2.4B
Revenue
$4.6B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $4.4B | $2.4B | $2.1B | 53.5% |
| Jun 30, 2025 | $4.6B | $2.4B | $2.2B | 52.6% |
| Dec 31, 2025 | $4.3B | $2.3B | $2.0B | 53.2% |
| Mar 31, 2026 | $4.6B | $2.4B | $2.1B | 53.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.1 pts
Year-over-year change
Mar 31, 2025
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew at a slower pace than revenue when compared with the prior quarter, and was flat year over year despite higher revenue, indicating that cost of revenue absorbed a larger share of sales. The strongest observable driver is the relationship between revenue growth and cost growth, with cost increasing more than revenue on a sequential basis.
Compared with the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue was higher, gross profit was unchanged, and gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth is compressing gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Emerson Electric Co. (EMR) | 53.1% |