U.S. FIRST TO MARKET

Research evidence excerpt

U.S. FIRST TO MARKET

North America Equity Research

U.S. First to Market 17 July 2026

Top Stories

| Emerson Electric Co. (Chigusa Katoku) (EMR, OW, PT $157.00)

F3Q26 Earnings Preview: Process Cycle Turning; Upgrade to OW

EMR is heavily debated with guidance requiring an organic growth acceleration in the back half while near-term signals are

mixed. We expect the 2H26 to be supported by the phasing of large, long-cycle projects already in the backlog (up 9% y/y),

continued positive momentum in the growth verticals (power, LNG, semi, A&D, etc.), coupled with upside from ME rehabilitation

work not included in guidance.

| 3M (Chigusa Katoku) (MMM, OW, PT $180.00)

2Q26 Earnings Preview: Growth Taking Hold; Upgrade to OW

We see growth taking hold at 3M, which is required to drive the next leg of EPS growth, with short cycle indicators continuing to

be supportive and AI/datacenter driven demand broadening out into parts of the economy outside of the obvious beneficiaries.

Recall, management commented intra-quarter that they expect 2Q organic growth solidly above 3% (vs above 3% guide, street

below 3% at the time).

International Business Machines (Brian Essex, CFA) (IBM, OW, PT $250.00)

2Q Preview: Slipped MIPS or Disruptive Headwinds? Expecting a Conservative Outlook

IBM’s mainframe-driven preannouncement was disappointing, but the stock now trades at a discount to our SoTP

multiple. IBM negatively pre-announced 2Q results this week, citing weaker-than-expected mainframe and related software

shortfall as a primary contributing factor. The company noted that the weakness was driven in part by a late-quarter shift in

client capex toward servers, storage, and memory ahead of anticipated price increases.

AFL | Vertical Software (Alexei Gogolev/Ella Smith)