NYSE Shariah screener · October 2026

Is Emerson Electric Co. (EMR) Halal?

PASS

Emerson Electric Co. · NYSE: EMR · Industrials

The short answer

Yes — Emerson Electric Co. (EMR) passes this Shariah stock screen on all three gates. It is a global industrial automation technology and software company reporting five segments (Control Systems & Software, Test & Measurement, Sensors, Final Control, Safety & Productivity), including wholly-owned AspenTech — none involve prohibited activities. Its Q3 FY2026 10-Q shows interest-bearing debt of $13,113M (short-term borrowings and current maturities $5,587M plus long-term debt $7,526M), about 14.83% of its ~$88.45B market cap ($158.57, October 1, 2026; 557.8M shares outstanding), below the ~33% ceiling. Separately disclosed interest income of $77M (nine months) is about 0.56% of net sales ($13,781M), below the 5% ceiling. Zoya describes EMR as Shariah-compliant and Musaffa classifies it halal (October 2026); no ShariaPortfolio rating was found — honestly reported as absent, not invented.

Gate 1 — Business activity: PASS

Emerson Electric Co. (NYSE: EMR) is a global technology and software company, per its Q3 FY2026 10-Q, serving industrial, commercial and consumer markets. Effective in fiscal 2026 (announced November 20, 2025, Form 8-K), it reports five reportable segments: Control Systems & Software and Test & Measurement (grouped as Software & Systems — includes AspenTech, wholly owned since March 12, 2025), Sensors and Final Control (grouped as Intelligent Devices), plus Safety & Productivity. Nine-month sales to June 30, 2026 were $13,781M (Intelligent Devices $7,580M; Software & Systems $4,600M; Safety & Productivity $1,601M) — control valves and actuators, measurement instruments and sensors, automation control systems, asset-optimization software and professional tools. Haram check (factual, from the filings): no segment involves alcohol, tobacco, gambling, adult entertainment or interest-based financial services; all activity is industrial automation, software and tools. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per Emerson's Q3 FY2026 10-Q (quarter ended June 30, 2026), interest-bearing debt was $13,113M — short-term borrowings and current maturities of long-term debt $5,587M plus long-term debt $7,526M. Against a market cap of about $88.45B ($158.57 close on October 1, 2026; 557.8 million shares outstanding per the 10-Q balance sheet), debt ÷ market cap is about 14.83%, below the ~33% ceiling. Cash and cash equivalents of $2,180M are about 2.46% of market cap. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

Emerson's Q3 FY2026 10-Q separately discloses interest income of $77M (nine months ended June 30, 2026, in the interest expense line) against net sales of $13,781M — about 0.56% of revenue, far below the 5% non-compliant income ceiling. All three gates pass. Gate 3 passes. Facts only.

Key figures used

Business: global technology and software company (St. Louis); five reportable segments: Control Systems & Software, Test & Measurement (Software & Systems group, incl. wholly-owned AspenTech), Sensors, Final Control (Intelligent Devices group), Safety & Productivity
Sales (nine months to June 30, 2026): $13,781M — Intelligent Devices $7,580M (Sensors $3,111M, Final Control $4,469M), Software & Systems $4,600M, Safety & Productivity $1,601M
Haram check: no alcohol, tobacco, gambling, or interest-based financial services in any segment — all automation, software, measurement and tools
Debt: $13,113M (ST borrowings + current maturities $5,587M + LT debt $7,526M) — debt ÷ market cap ≈ 14.83% of ~$88.45B, under the ~33% ceiling
Cash: $2,180M cash and equivalents ≈ 2.46% of market cap
Interest income: $77M (nine months, separately disclosed in 10-Q) vs net sales $13,781M — ≈0.56% of revenue, under the 5% ceiling
Zoya: Shariah-compliant (interest income $150M / $18,016M = 0.83% per FY2025 10-K); Musaffa: halal (Oct 2026); ShariaPortfolio: no rating found
Result: PASS — all three gates (business activity, debt, non-compliant income) pass

Frequently asked questions

What does Emerson Electric do?

Emerson Electric Co. (NYSE: EMR), founded in 1890 and headquartered in St. Louis, Missouri, describes itself in its Q3 FY2026 10-Q as a global technology and software company serving industrial, commercial and consumer markets. Effective in fiscal 2026 (announced November 20, 2025), it reports five reportable segments: Control Systems & Software and Test & Measurement (grouped as Software & Systems, including wholly-owned AspenTech, whose acquisition was completed March 12, 2025 for about $7.2B) and Sensors and Final Control (grouped as Intelligent Devices), plus Safety & Productivity. Nine-month sales to June 30, 2026 were $13,781M: Intelligent Devices $7,580M (Sensors $3,111M, Final Control $4,469M), Software & Systems $4,600M (Control Systems & Software $3,332M, Test & Measurement $1,268M) and Safety & Productivity $1,601M.

Why does Emerson pass this Shariah stock screen?

Emerson passes at the business-activity gate: its five reportable segments are all industrial automation, software, measurement, control equipment and professional tools — control valves and actuators, sensors and measurement instruments, automation control systems, asset-optimization software (AspenTech) and professional safety tools. The filings disclose no prohibited business lines (no alcohol, tobacco, gambling, or interest-based financial services), and its financial ratios pass both the ~33% debt ceiling and the 5% non-compliant income ceiling. Both third-party screeners that cover EMR agree — Zoya describes it as Shariah-compliant and Musaffa classifies it halal (October 2026). This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.

What is Emerson's interest-bearing debt ratio?

Per Emerson's Q3 FY2026 10-Q (quarter ended June 30, 2026), interest-bearing debt was $13,113M — short-term borrowings and current maturities of long-term debt $5,587M plus long-term debt $7,526M. Against a market cap of about $88.45B ($158.57 close on October 1, 2026; 557.8 million shares outstanding per the 10-Q balance sheet), debt ÷ market cap is about 14.83% — below the ~33% ceiling. Cash and equivalents of $2,180M are about 2.46% of market cap.

What is Emerson's non-compliant income ratio?

Emerson's Q3 FY2026 10-Q discloses interest income of $77M (nine months ended June 30, 2026) within the interest expense line, against nine-month net sales of $13,781M — about 0.56% of revenue, far below the 5% non-compliant income ceiling. All three gates pass, so this screen is a PASS.

Do Zoya, Musaffa, or ShariaPortfolio cover Emerson?

Zoya covers EMR and describes it as Shariah-compliant under AAOIFI guidelines, noting FY2025 10-K interest income of $150M against $18,016M revenue (0.83%). Musaffa covers EMR and classifies it halal as of October 2026. No ShariaPortfolio screening page or rating for EMR was found — reported as absent, not invented. This page applies the screen directly from Emerson's own filings and reports these positions honestly.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).