Business Segment Information

3 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Sales and operating results of our reportable segments were (in millions):

	Three Months Ended December 31, 2025
	Intelligent Devices		Software & Control		Lifecycle Services		Total
Sales	$	953	$	629	$	523	$	2,105
Less:
Segment cost of sales	(532)		(187)		(344)
Segment selling, general and administrative expenses	(192)		(152)		(93)
Segment engineering and development expenses	(63)		(95)		(14)
Other segment items (1)	(1)		1		2
Segment operating earnings	$	165	$	196	$	74	435
Purchase accounting depreciation and amortization							(32)
Corporate and other							(30)
Non-operating pension and postretirement benefit credit							3
Net legacy asbestos and environmental charges							(1)
Cost associated with dissolution of Sensia							(4)
Interest expense, net							(29)
Income before income taxes							$	342

(1) Other segment items are primarily comprised of foreign currency adjustments for each segment.

	Three Months Ended December 31, 2024
	Intelligent Devices		Software & Control		Lifecycle Services		Total
Sales	$	806	$	529	$	546	$	1,881
Less:
Segment cost of sales	(439)		(160)		(368)
Segment selling, general and administrative expenses	(183)		(151)		(99)
Segment engineering and development expenses	(61)		(83)		(12)
Other segment items (1)	(3)		(2)		1
Segment operating earnings	$	120	$	133	$	68	321
Purchase accounting depreciation and amortization							(35)
Corporate and other							(35)
Non-operating pension and postretirement benefit credit							—
Net legacy asbestos and environmental charges (2)							(3)
Cost associated with dissolution of Sensia							—
Interest expense, net							(35)
Income before income taxes							$	213

(1) Other segment items are primarily comprised of foreign currency adjustments for each segment.

(2) Legacy asbestos and environmental charges were previously included in Corporate and other. All periods have been recast to conform with current year presentation.

Among other considerations, we evaluate performance and allocate resources based upon segment operating earnings before purchase accounting depreciation and amortization, corporate and other, non-operating pension and postretirement benefit credit, net legacy asbestos and environmental charges, cost associated with dissolution of Sensia, change in fair value of investments, restructuring charges aligned with enterprise-wide strategic initiatives, and interest expense, net. Our chief operating decision maker (CODM), our Chief Executive Officer, uses segment operating earnings as the key performance metric to regularly monitor performance compared to prior periods, annual operating plan, and forecasts and to make decisions. The Company does not report total assets or capital expenditures by segment for internal reporting purposes as our CODM does not assess performance, make strategic decisions, or allocate resources based on assets.

Depending on the product, intersegment sales within a single legal entity are either at cost or cost plus a mark-up, which does not necessarily represent a market price. Sales between legal entities are at an appropriate transfer price. Segment selling, general and administrative expenses represent costs directly managed by the segments and allocated to the segments. We allocate costs related to shared segment operating activities to the segments consistent with the methodology used by management to assess segment performance.

We conduct a significant portion of our business activities outside the United States. We attribute sales to the geographic regions based on the country of destination. Sales in North America include $1,237 million and $1,052 million related to the U.S. for the three months ended December 31, 2025 and 2024, respectively. Refer to Note 2 for disaggregation of revenue by segment and region.

In most countries, we sell primarily through independent distributors in conjunction with our direct sales force. We sell large systems and service offerings principally through our direct sales force, though opportunities are sometimes identified through distributors. Sales to our two largest distributors in December 31, 2025, and 2024, which are attributable to all three segments, were approximately 20 percent of our total sales.

The following table summarizes the provision for depreciation and amortization for each of the reportable segments and Corporate (in millions):

	Three Months Ended December 31, 2025		Three Months Ended December 31, 2024
Depreciation and amortization
Intelligent Devices	$	17	$	18
Software & Control	20		14
Lifecycle Services	9		10
Corporate	1		1
Total	47		43
Purchase accounting depreciation and amortization	32		35
Total	$	79	$	78

Depreciation expense has been allocated to segment operating earnings based on the expected benefit to be realized by each segment.