“We continue to see strength in customer adoption of our subscription software and expect double-digit ACV growth for the full year.”

In context

“h quarter underlying sales for our process and hybrid businesses in the mid-single digits, driven by global investment in LNG, power and life sciences. Our discrete businesses are expected to be up double digits in the quarter, reinforced by the recovery in Test & Measurement, which is expected to be up sharply with growth in the high teens. In the Americas, we expect broad-based strength in North America MRO and greenfield projects. We plan to see growth accelerate in Europe led by energy security and modernization projects, coupled with recovery in discrete markets. Robust investment is expected to continue in the Middle East, India and Southeast Asia, and we expect China to be up slightly, supported by power and marine with improving business fundamentals in Test & Measurement markets. We continue to see strength in customer adoption of our subscription software and expect double-digit ACV growth for the full year. Notably, ACV in AspenTech's digital grid management grew 26% in the third quarter with strong momentum across North America and Europe. Please turn to Slide 7. The tariff environment continues to be dynamic. Emerson's annualized gross incremental tariff impact is now approximately $210 million, which is down from our prior estimate of $455 million given the recent announcements. In the fiscal year, we are now expecting a gross tariff impact to be $130 million versus our prior estimate of $245 million. After our May earnings call, the tariff environment improved as announced tariffs were paused and deals were reached with a number of trade partners. Subsequently, due to the improved tariff environment and in consideration of our customers, we decided to ease a number of the surcharges we h”