Rockwell Automation (NYSE:ROK) Posts Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Rockwell Automation (NYSE:ROK) posted its quarterly earnings data on Thursday. The industrial products company reported $3.88 EPS for the quarter, beating the consensus estimate of $3.69 by $0.19, FiscalAI reports. Rockwell Automation had a net margin of 15.68% and a return on equity of 41.79%. The business had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.41 billion. During the same quarter last year, the firm posted $3.34 earnings per share. The business’s revenue for the quarter was up .7% compared to the same quarter last year. Rockwell Automation updated its FY 2027 guidance to 14.500-15.500 EPS.

Here are the key takeaways from Rockwell Automation’s conference call:

• Fiscal 2026 delivered strong growth and profitability: core sales rose 9%, adjusted EPS increased 27% to $13.42, and enterprise operating margin reached 22.2%, exceeding the company’s long-term target. Free cash flow conversion was 113%.
• Rockwell forecast continued growth in fiscal 2027, guiding to 6%–9% organic sales growth, adjusted EPS of $14.50–$15.50, and a 23% enterprise operating margin. The midpoint includes a 100-basis-point sales benefit from the prior-year customer tariff-refund accrual; excluding that benefit, organic growth is expected to be about 6.5%.
• Demand is strong in several growth markets: semiconductor and data center together account for about 10% of revenue, with mid-teens growth expected in fiscal 2027. Fourth-quarter Logix sales rose 25%, and the company cited continued momentum in automotive, warehouse automation, and data center projects.
• Annual recurring revenue growth fell short of expectations, rising 5% in fiscal 2026. Management cited project delays and reduced customer rollouts, though it expects ARR growth to improve to 7% in fiscal 2027.
• Tariff refunds materially affected reported results: customer refunds reduced sales by $85 million, while net tariff-related items added $0.11 to adjusted EPS and contributed 130 basis points to fourth-quarter margin expansion. The company said price-cost remained positive, but ongoing inflation and higher component costs remain factors in its outlook.

Rockwell Automation Stock Down 1.5%

Shares of NYSE:ROK traded down $5.55 during trading hours on Friday, reaching $375.50. The stock had a trading volume of 2,211,793 shares, compared to its average volume of 984,129. Rockwell Automation has a 1 year low of $347.53 and a 1 year high of $497.36. The firm’s 50 day moving average is $429.38 and its 200-day moving average is $427.32. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.74 and a current ratio of 2.11. The stock has a market capitalization of $41.70 billion, a price-to-earnings ratio of 28.01, a P/E/G ratio of 1.78 and a beta of 1.51.

Rockwell Automation Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Monday, November 16th will be given a $1.45 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $5.80 dividend on an annualized basis and a dividend yield of 1.5%. This is a boost from Rockwell Automation’s previous quarterly dividend of $1.38. Rockwell Automation’s payout ratio is currently 51.73%.

Wall Street Analysts Forecast Growth

Several research firms have commented on ROK. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Rockwell Automation from $469.00 to $500.00 and gave the stock a “hold” rating in a research note on Wednesday, September 30th. Sanford C. Bernstein increased their price objective on Rockwell Automation from $501.00 to $514.00 and gave the company a “market perform” rating in a research note on Friday, August 14th. Stephens reduced their price objective on Rockwell Automation from $550.00 to $500.00 and set an “overweight” rating on the stock in a research note on Friday. Wells Fargo & Company started coverage on Rockwell Automation in a report on Thursday, September 24th. They issued an “equal weight” rating and a $426.00 target price for the company. Finally, Robert W. Baird set a $514.00 target price on Rockwell Automation in a research note on Wednesday, August 5th. Nine investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $471.33.

Insider Activity

In related news, VP Isaac Woods sold 154 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $432.62, for a total transaction of $66,623.48. Following the completion of the transaction, the vice president owned 1,858 shares in the company, valued at approximately $803,807.96. The trade was a 7.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Patricia A. Watson sold 1,100 shares of the stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $431.43, for a total value of $474,573.00. Following the completion of the transaction, the director directly owned 6,385 shares in the company, valued at $2,754,680.55. This trade represents a 14.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 2,711 shares of company stock valued at $1,164,880 in the last 90 days. Company insiders own 0.76% of the company’s stock.

Key Rockwell Automation News

Here are the key news stories impacting Rockwell Automation this week:

• Positive Sentiment: Quarterly adjusted EPS of $3.88 beat consensus estimates, while profit benefited from margin expansion and stronger performance in some segments. Reports also highlighted AI-related segment growth as a support for results. Rockwell Automation Q4 Earnings Beat Estimates on Margin Gains
• Neutral Sentiment: FY2027 EPS guidance of $14.50–$15.50 brackets the $14.92 consensus estimate. Revenue guidance of $9.4 billion–$9.7 billion also spans the $9.6 billion consensus, offering no clear upward surprise. Rockwell Automation Issues Fiscal 2027 Outlook
• Neutral Sentiment: Stephens lowered its price target from $550 to $500 but maintained an Overweight rating. The reduced target is a headwind, though the firm still sees substantial upside from the cited share price. Stephens stock recommendations
• Negative Sentiment: Revenue of $2.33 billion missed the $2.41 billion estimate and grew just 0.7% year over year. The sales miss and limited growth likely weighed on sentiment despite the EPS beat. Rockwell Automation misses sales expectations

About Rockwell Automation

Rockwell Automation, Inc is an industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. Its roots date to 1903, when it was founded as the Compression Rheostat Company.

The company provides hardware, software and services that help manufacturers automate and manage industrial operations. Its offerings include control systems, sensors, motor-control products, industrial software and services for optimizing production and maintaining equipment. Its Allen-Bradley and FactoryTalk brands are among its best-known product lines.

Rockwell Automation serves customers across a range of industries and operates in markets around the world.