Emerson Electric Co., founded in 1890 and headquartered in St. Louis, Missouri, is a Fortune 500 company that has evolved into a global automation and technology leader. With over 135 years of history, Emerson helps customers in essential industries solve complex challenges. The company's business is diversified into two main ...Emerson Electric Co., founded in 1890 and headquartered in St. Louis, Missouri, is a Fortune 500 company that has evolved into a global automation and technology leader. With over 135 years of history, Emerson helps customers in essential industries solve complex challenges. The company's business is diversified into two main segments. The Automation Solutions segment offers advanced measurement and analytical instruments, industrial valves, process control software and systems, catering to oil and gas, refining, chemical, power generation, life sciences, food and beverage, automotive, pulp and paper, metals and mining, and municipal water utilities. The Commercial & Residential Solutions segment provides HVAC products like compressors, thermostats, monitoring equipment, and control units for residential and commercial use, as well as tools for professionals and DIYers. Emerson also emphasizes sustainability and innovation, delivering solutions that enhance safety, efficiency, and environmental responsibility. Financially, Emerson has a market cap of over $88 billion, with strong margins and solid cash flow generation. The company's recent acquisitions, such as Aspen Technology, expand its software and digital capabilities. Under CEO Lal Karsanbhai, Emerson focuses on culture and empowering employees to drive growth. With approximately 71,000 employees worldwide, Emerson continues to lead in automation and technology, addressing the needs of a rapidly changing world.
Operator: Good afternoon, and welcome to the Emerson Third Quarter and Full Year 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to your host, Doug Ashby, Director of Investor Relations at Emerson. Please go ahead.
Doug Ashby: Good afternoon, and thank you for joining Emerson's Third Quarter 2026 Earnings Conference Call. Today, I'm joined by Emerson's President and Chief Executive Officer, Lal Karsanbhai; Chief Financial Officer, Mike Baughman; and Chief Operating Officer, Ram Krishnan. As always, I encourage everyone to follow along with the slide presentation, which is available on our website. Please turn to Slide 2. This presentation may include forward-looking statements, which contain a degree of business risk and uncertainty. Please take time to read the safe harbor statement and note on the non-GAAP measures. I will now pass the call over to Emerson's President and CEO, Lal Karsanbhai, for his opening remarks.
Surendralal Karsanbhai: Thank you, Doug. Good afternoon, everyone. I'd like to begin by thanking my Emerson colleagues around the world for delivering an outstanding quarter. We have created momentum in our business built on customer intimacy, investment in innovation and operational execution, all a testament of the strength of the Emerson management system. Please turn to Slide 3. I would like to recognize our Chief Technology Officer, Peter Zornio, who will retire on December 31, following an exceptional career at Emerson. Peter joined Emerson in 2006 and played an instrumental role in the development of our industry-leading control systems and software portfolio. He has been a key member of the executive leadership team in our automation business since 2017 and played a pivotal role driving innovation as CTO during our portfolio transformation. Thank you, Peter, for your contributions and friendship over the past 20 years, and please know, it has been an honor working with you. I'm also excited to announce Rudy Sengupta as our Senior Vice President and Chief Technology and AI Officer effective August 15. This appointment reinforces Emerson's strategy to lead in AI-enabled automation, advancing the full technology stack and helping customers achieve autonomous operations at scale. Rudy joined Emerson through the acquisition of NI and brings decades of experience in software-defined automation, spanning engineering, product and corporate strategy and operations. Currently serving as Vice President and General Manager of Test and Analytics Software, Rudy has advanced NI software differentiation, including the development of award-winning Nigel AI. He brings a deep understanding of technology and AI, and his leadership of our enterprise AI vision and long-term technology road map will be key in accelerating innovation across Emerson, and positioning the company for continued growth. Please turn to Slide 4. End market demand is robust, …
