Rockwell Automation (NYSE:ROK) Issues Earnings Results

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

Shares of Rockwell Automation stock traded down $5.55 during trading hours on Friday, reaching $375.50. 2,211,793 shares of the stock traded hands, compared to its average volume of 984,129. Rockwell Automation has a one year low of $347.53 and a one year high of $497.36. The firm 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. The company has a quick ratio of 0.74, a current ratio of 2.11 and a debt-to-equity ratio of 0.72. The company has a 50 day moving average price of $429.38 and a 200 day moving average price of $427.32.

Rockwell Automation Increases Dividend

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

Wall Street Analyst Weigh In

Several brokerages recently commented on ROK. Sanford C. Bernstein boosted their price objective on shares of Rockwell Automation from $501.00 to $514.00 and gave the company a “market perform” rating in a research note on Friday, August 14th. DA Davidson decreased their price objective on Rockwell Automation from $500.00 to $490.00 and set a “neutral” rating on the stock in a report on Friday, August 21st. The Goldman Sachs Group lowered their price target on shares of Rockwell Automation from $510.00 to $485.00 and set a “neutral” rating for the company in a research note on Wednesday, September 30th. Robert W. Baird set a $514.00 price objective on Rockwell Automation in a research note on Wednesday, August 5th. Finally, Wells Fargo & Company assumed coverage on shares of Rockwell Automation in a report on Thursday, September 24th. They set an “equal weight” rating and a $426.00 target price for the company. Nine analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $471.33.

Rockwell Automation News Summary

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

Insider Buying and Selling

In related news, SVP Matheus De A. G. Viera Bulho sold 467 shares of the company’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $426.96, for a total transaction of $199,390.32. Following the completion of the transaction, the senior vice president owned 1,267 shares in the company, valued at approximately $540,958.32. This represents a 26.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Isaac Woods sold 154 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $432.62, for a total value of $66,623.48. Following the transaction, the vice president directly owned 1,858 shares of the company’s stock, valued at approximately $803,807.96. The trade was a 7.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders sold 2,711 shares of company stock worth $1,164,880 over the last ninety days. 0.76% of the stock is owned by corporate insiders.

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.