Emerson (EMR) shares tumbled 5.31% in pre-market trading on Wednesday following the release of its third-quarter 2025 financial results and updated full-year guidance. The industrial technology company's performance and outlook appear to have disappointed investors, leading to the significant stock decline.
For the third quarter, Emerson reported sales of $4.553 billion, falling short of the $4.597 billion estimated by analysts. While the company's adjusted earnings per share (EPS) of $1.52 slightly beat the consensus estimate of $1.51, the revenue miss seems to have overshadowed this positive aspect. Emerson's GAAP EPS for the quarter stood at $1.03, with operating cash flow reaching $1.062 billion.
Adding to investor concerns, Emerson updated its full-year 2025 outlook, now projecting revenue growth of 3.5% and adjusted EPS of $6.00. This guidance may be viewed as conservative by some market participants. For the upcoming fourth quarter, the company expects net sales growth of 5.5% to 6.5% and underlying sales growth of 5% to 6%. The tempered outlook, combined with the Q3 sales miss, appears to be the primary driver behind the stock's pre-market plunge as investors reassess Emerson's growth prospects in the current economic environment.