Shares of Emerson Electric (EMR) plunged 9.59% in pre-market trading on Wednesday following the release of its third-quarter 2025 earnings report. The sharp decline came as the engineering solutions provider missed revenue expectations, overshadowing a slight earnings beat and an upward revision to its full-year profit forecast.

Emerson reported Q3 sales of $4.55 billion, falling short of the $4.59 billion analysts had expected. Despite the revenue miss, the company posted adjusted earnings per share of $1.52, marginally surpassing the consensus estimate of $1.51. The intelligent devices segment, Emerson's largest business unit, saw a 4% increase in revenue to $3.13 billion, driven by higher demand for measurement and analytical components.

While Emerson slightly raised its full-year 2025 adjusted earnings per share guidance to $6.00 from a previous range of $5.90 to $6.05, investors seemed unimpressed. The company now projects annual revenue growth of 3.5%, citing reduced cost exposure to tariffs and updated expectations for pricing actions. For the fourth quarter, Emerson forecasts net sales growth of 5.5% to 6.5%. However, the market's negative reaction suggests that investors were looking for more robust growth prospects, particularly in light of the Q3 revenue shortfall.