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ROK Q1 Earnings Surpass Estimates, Increase Y/Y on Higher Volumes
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Key Takeaways
ROK posted Q1 adjusted EPS of $2.75, beating estimates, as revenues rose 11.9% year over year.
ROK saw organic sales climb, and margins expand, helped by higher volumes, pricing gains and favorable mix.
ROK saw strong growth in Intelligent Devices, while Lifecycle Services sales declined 4% y/y.
Rockwell Automation Inc. (ROK - Free Report) reported adjusted earnings per share (EPS) of $2.75 in the first-quarter fiscal 2026 (ended Dec. 31, 2025), which beat the Zacks Consensus Estimate of $2.54. The company disclosed an adjusted EPS of $1.85 for the prior-year quarter, excluding net legacy asbestos and environmental charges, which are considered unrelated to current operations.
Including one-time items, ROK's earnings were $2.69 per share in the fiscal first quarter compared with the prior-year quarter’s $1.61.
ROK’s total revenues were $2.11 billion, up 11.9% from the prior-year quarter. The top line surpassed the Zacks Consensus Estimate of $2.09 billion. Organic sales were up 10% year over year. We expected organic sales to increase 9.6% in the quarter.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
The cost of sales increased 8.6% year over year to $1.09 billion. The gross profit grew 15.7% year over year to $1.02 billion. Selling, general and administrative expenses moved up 0.4% year over year to $478 million.
Consolidated segment operating income totaled $435 million, up 36% from the prior-year quarter. The total segment operating margin was 20.7%, higher than the prior-year period’s 17.1%. The upside was driven by higher sales volume, positive pricing and a favorable mix. This was partially offset by higher compensation.
Rockwell Automation’s Segmental Results in Q1
Intelligent Devices: Net sales amounted to $953 million, up 18% year over year. The reported figure missed our estimate of $968 million.
The segment’s operating earnings totaled $165 million compared with the year-earlier quarter’s $120 million. We predicted the segment’s operating earnings to be $175 million. The segment’s operating margin increased to 17.3% from the year-ago quarter’s 14.9%, driven by higher sales volume.
Software & Control: Net sales grew 19% year over year to $629 million. Reported sales surpassed our estimate of $568 million.
The segment’s operating earnings increased 47.4% year over year to $196 million. We predicted segmental operating earnings of $168 million. The segment’s operating margin was 31.2% compared with 25.1% in the year-earlier quarter. The upside was driven by higher sales volume.
Lifecycle Services: Net sales for the segment were $523 million, down 4% year over year. We projected the segment’s sales to be $521 million. The segment’s operating earnings totaled $74 million compared with the prior-year quarter’s $68 million.
Our estimate for the segment’s operating earnings was $51 million. The segment’s operating margin was 14.1% compared with the year-earlier quarter’s 12.5%, reflecting gains from productivity, offset by lower sales volume.
Rockwell Automation’s Cash Position & Balance Sheet Updates
At the end of the first quarter of fiscal 2026, cash and cash equivalents were $444 million, down from $468 million at the end of fiscal 2025. The long-term debt was $2.57 billion at the end of the quarter, down from the fiscal 2024-end figure of $2.61 billion.
Cash flow from operations in the first quarter of fiscal 2026 was $234 million compared with the prior-year quarter’s $364 million. Return on invested capital was 16.3% as of Dec. 31, 2026.
In the first quarter, ROK repurchased 0.4 million shares for $154 million. As of the end of the quarter, $773 million was available under the existing share-repurchase authorization.
ROK’s FY26 Guidance
The company continues to expect reported sales to grow 3-7% in 2026. Organic sales growth is expected between 2% and 6% for the fiscal year.
Rockwell Automation expects adjusted EPS of $11.40-$12.20 for fiscal 2026, updated from the prior stated $11.20-$12.20.
Rockwell Automation Stock’s Price Performance
In the past year, ROK shares have gained 62.5% compared with the industry’s 32.4% growth.
Teradyne, Inc. (TER - Free Report) reported fourth-quarter 2025 adjusted earnings of $1.80 per share, which beat the Zacks Consensus Estimate of $1.36. The company’s bottom line surged 89.5% year over year.
Teradyne’s revenues of $1.08 billion beat the Zacks Consensus Estimate of $0.97 billion and increased 43.7% year over year.
KLA Corporation (KLAC - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $8.85 per share, beating the Zacks Consensus Estimate of $8.82. The company’s bottom line increased 7.9% year over year.
KLA’s revenues increased 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02%.
The Timken Company (TKR - Free Report) posted an adjusted EPS of $1.14 in the fourth quarter of 2025, beating the Zacks Consensus Estimate of $1.09. The company’s bottom line dipped 2% year over year from the EPS of $1.16 in the year-ago quarter.
Timken’s total revenues were $1.11 billion, up 3.4% from sales of $1.07 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.08 billion.
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ROK Q1 Earnings Surpass Estimates, Increase Y/Y on Higher Volumes
Key Takeaways
Rockwell Automation Inc. (ROK - Free Report) reported adjusted earnings per share (EPS) of $2.75 in the first-quarter fiscal 2026 (ended Dec. 31, 2025), which beat the Zacks Consensus Estimate of $2.54. The company disclosed an adjusted EPS of $1.85 for the prior-year quarter, excluding net legacy asbestos and environmental charges, which are considered unrelated to current operations.
Including one-time items, ROK's earnings were $2.69 per share in the fiscal first quarter compared with the prior-year quarter’s $1.61.
ROK’s total revenues were $2.11 billion, up 11.9% from the prior-year quarter. The top line surpassed the Zacks Consensus Estimate of $2.09 billion. Organic sales were up 10% year over year. We expected organic sales to increase 9.6% in the quarter.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote
ROK’s Margin Performance in Q1
The cost of sales increased 8.6% year over year to $1.09 billion. The gross profit grew 15.7% year over year to $1.02 billion. Selling, general and administrative expenses moved up 0.4% year over year to $478 million.
Consolidated segment operating income totaled $435 million, up 36% from the prior-year quarter. The total segment operating margin was 20.7%, higher than the prior-year period’s 17.1%. The upside was driven by higher sales volume, positive pricing and a favorable mix. This was partially offset by higher compensation.
Rockwell Automation’s Segmental Results in Q1
Intelligent Devices: Net sales amounted to $953 million, up 18% year over year. The reported figure missed our estimate of $968 million.
The segment’s operating earnings totaled $165 million compared with the year-earlier quarter’s $120 million. We predicted the segment’s operating earnings to be $175 million. The segment’s operating margin increased to 17.3% from the year-ago quarter’s 14.9%, driven by higher sales volume.
Software & Control: Net sales grew 19% year over year to $629 million. Reported sales surpassed our estimate of $568 million.
The segment’s operating earnings increased 47.4% year over year to $196 million. We predicted segmental operating earnings of $168 million. The segment’s operating margin was 31.2% compared with 25.1% in the year-earlier quarter. The upside was driven by higher sales volume.
Lifecycle Services: Net sales for the segment were $523 million, down 4% year over year. We projected the segment’s sales to be $521 million. The segment’s operating earnings totaled $74 million compared with the prior-year quarter’s $68 million.
Our estimate for the segment’s operating earnings was $51 million. The segment’s operating margin was 14.1% compared with the year-earlier quarter’s 12.5%, reflecting gains from productivity, offset by lower sales volume.
Rockwell Automation’s Cash Position & Balance Sheet Updates
At the end of the first quarter of fiscal 2026, cash and cash equivalents were $444 million, down from $468 million at the end of fiscal 2025. The long-term debt was $2.57 billion at the end of the quarter, down from the fiscal 2024-end figure of $2.61 billion.
Cash flow from operations in the first quarter of fiscal 2026 was $234 million compared with the prior-year quarter’s $364 million. Return on invested capital was 16.3% as of Dec. 31, 2026.
In the first quarter, ROK repurchased 0.4 million shares for $154 million. As of the end of the quarter, $773 million was available under the existing share-repurchase authorization.
ROK’s FY26 Guidance
The company continues to expect reported sales to grow 3-7% in 2026. Organic sales growth is expected between 2% and 6% for the fiscal year.
Rockwell Automation expects adjusted EPS of $11.40-$12.20 for fiscal 2026, updated from the prior stated $11.20-$12.20.
Rockwell Automation Stock’s Price Performance
In the past year, ROK shares have gained 62.5% compared with the industry’s 32.4% growth.
ROK’s Zacks Rank
Rockwell Automation currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ROK’s Peer Performances
Teradyne, Inc. (TER - Free Report) reported fourth-quarter 2025 adjusted earnings of $1.80 per share, which beat the Zacks Consensus Estimate of $1.36. The company’s bottom line surged 89.5% year over year.
Teradyne’s revenues of $1.08 billion beat the Zacks Consensus Estimate of $0.97 billion and increased 43.7% year over year.
KLA Corporation (KLAC - Free Report) reported second-quarter fiscal 2026 adjusted earnings of $8.85 per share, beating the Zacks Consensus Estimate of $8.82. The company’s bottom line increased 7.9% year over year.
KLA’s revenues increased 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02%.
The Timken Company (TKR - Free Report) posted an adjusted EPS of $1.14 in the fourth quarter of 2025, beating the Zacks Consensus Estimate of $1.09. The company’s bottom line dipped 2% year over year from the EPS of $1.16 in the year-ago quarter.
Timken’s total revenues were $1.11 billion, up 3.4% from sales of $1.07 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.08 billion.