Mizuho has increased its 12-month price objective on Emerson (NYSE: EMR) to $173.00, up from $155.00, while retaining an Outperform recommendation on the industrial technology company. The stock was trading at $152.10 at the time of the report, about 1% below its 52-week high of $154.04, and carries a market capitalization of $85.5 billion.
The analyst move follows Emerson’s latest quarterly report, which showed order intake ahead of expectations. Orders expanded 9% overall, with North America driving roughly 18% growth. Mizuho described signs of emerging "green shoots" in Emerson’s short-cycle business.
Those order trends sit alongside an elevated gross profit margin of 52.8%, a level that positions Emerson as a notable participant in the Electrical Equipment industry according to available company data. Management also reported project wins in a range of growth-oriented end markets - including LNG, Power, Semiconductors, Life Sciences and Aerospace - which underpin the firm’s near- and medium-term revenue outlook.
Emerson continues to carry a substantial pipeline of opportunities. The company’s project funnel stands at approximately $11.1 billion, and its backlog is about $7.9 billion, figures that Mizuho said support fiscal year 2027 expectations. The firm also flagged that Emerson secured roughly $450 million of automation awards drawn from the project funnel in the first quarter.
Balance-sheet metrics appear manageable in the view presented: Emerson is described as having a moderate level of debt and receives a "Good" overall financial health score from InvestingPro. Those elements, combined with the large backlog, are cited as reasons the company should be able to execute on its project slate.
On the earnings front, Mizuho modestly raised its estimates after Emerson’s first-quarter beat. The fiscal 2026 EPS estimate was lifted to $6.50 from $6.45, and the fiscal 2027 projection was increased to $7.13 from $7.10. The analyst attributed the changes to the quarterly earnings beat and the strength in orders, as well as to higher peer valuations and incremental earnings revisions across the group.
Emerson reported first-quarter 2026 earnings of $1.46 per share, above the consensus forecast of $1.41. Revenue for the quarter came in at $4.35 billion, roughly in line with analysts’ expectations. The company’s earnings call reiterated Emerson’s financial performance and competitive positioning, and the results have attracted attention from the investment community.
Mizuho expects growth to accelerate in the second half of the fiscal year as difficult contract renewal comparisons ease and as backlog phasing and project shipment timing support revenue recognition. Following the report, analyst firms have not issued upgrades or downgrades, and market participants continue to monitor Emerson’s execution on its backlog and funnels.
Summary: Mizuho raised Emerson’s price target to $173 and kept an Outperform rating after quarterly orders beat expectations, especially in North America. The company’s strong gross margin, sizable project funnel and backlog, and early automation wins helped drive the analyst’s view and modestly higher EPS estimates for fiscal 2026 and 2027.