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Rockwell Automation Q4 Earnings Beat Estimates on Margin Gains
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Key Takeaways
ROK's adjusted EPS rose 16.2% y/y to $3.88, beating estimates on higher volume and improved margins.
Software & Control and Intelligent Devices posted strong sales and operating earnings growth in Q4.
ROK expects FY27 adjusted EPS of $14.50-$15.50, implying 11.8% growth at the midpoint.
Rockwell Automation Inc. (ROK - Free Report) has reported adjusted earnings per share (EPS) of $3.88 in the fourth quarter of fiscal 2026 (ended Sept. 30, 2026), beating the Zacks Consensus Estimate of $3.72 by 4.3%. The bottom line increased 16.2% from $3.34 in the year-ago quarter, benefiting from higher sales volume, favorable currency and an improved operating margin.
Including one-time items, earnings were $3.11 per share compared with $1.23 in the prior-year quarter.
Revenues increased 0.7% year over year to $2.33 billion but missed the consensus estimate of $2.39 billion by 2.3%. Organic sales increased 3%, while organic annual recurring revenues (ARR) grew 5%. We expected organic sales to increase 3.5% in the quarter.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
The cost of sales declined 6.2% year over year to $1.12 billion. Gross profit increased 8% to $1.21 billion. The gross margin expanded to 51.9% from 48.4% in the prior-year quarter.
Selling, general and administrative expenses increased 20.2% to $566 million. Enterprise operating profit rose 16% year over year to $572 million. The enterprise operating margin expanded 320 basis points to 24.5%, including a favorable 130-basis-point impact of tariff refund-related items.
ROK’s Segmental Results in Q4
Intelligent Devices: Net revenues amounted to $1.14 billion, up 5% year over year from $1.09 billion. The reported figure beat our estimate of $1.10 billion. Organic sales increased 5%, while currency translation and divestitures had negligible impacts on growth.
The segment’s operating earnings increased 14.9% year over year to $247 million from $215 million. We predicted the segment’s operating earnings to be $235 million. The segment’s operating margin increased to 21.6% from 19.8%, driven by higher sales volume, favorable currency, positive price-cost dynamics and a favorable mix. This was partially offset by higher compensation expenses.
Software & Control: Net revenues grew 15% year over year to $754 million from $657 million. Reported revenues surpassed our estimate of $730 million. Organic sales increased 15%, while currency translation and divestitures had negligible impacts on growth.
The segment’s operating earnings increased 24.9% year over year to $256 million from $205 million. We predicted segmental operating earnings of $226 million. The segment’s operating margin increased to 34% from 31.2%. The improvement was primarily driven by higher organic sales.
Lifecycle Services: Net revenues for the segment were $519 million, down 9% year over year from $573 million. We projected the segment’s sales to be $501 million. Organic sales increased 2%, while divestitures reduced sales growth by 11 percentage points. Currency translation had a negligible impact.
The segment’s operating earnings declined 15% year over year to $85 million from $100 million. Our estimate for the segment’s operating earnings was $76 million. The segment’s operating margin decreased to 16.4% from 17.5%, reflecting higher compensation expenses and an unfavorable project mix. This was partially offset by the margin benefit from the Sensia joint venture dissolution and higher sales volume. The segment reported a book-to-bill ratio of 0.97.
Rockwell Automation's FY26 Performance
ROK reported adjusted EPS of $13.42 in fiscal 2026, up 27.4% from $10.53 in fiscal 2025. The figure beat the Zacks Consensus Estimate of $13.26. The improvement was driven by higher sales volume, favorable currency, improved operating margin and a lower share count.
Including one-time items, ROK’s earnings were $12.54 per share compared with $7.67 in the prior year.
Revenues increased 7.8% year over year to $8.99 billion from $8.34 billion. However, the figure beat the Zacks Consensus Estimate of $9.03 billion. Organic sales grew 8%, while organic ARR increased 5%. The enterprise operating margin expanded to 22.2% from 18.9% in fiscal 2025, reflecting strong operating performance.
ROK's Cash Flow & Financial Position
Cash provided by operating activities totaled $680 million in the fiscal fourth quarter compared with $454 million in the prior-year period. The free cash flow increased to $602 million from $405 million, supported by improved profitability and tariff refund-related cash receipts.
Rockwell Automation ended fiscal 2026 with cash and cash equivalents of $433 million compared with $468 million a year earlier. Total debt stood at $3.28 billion.
Rockwell Automation Introduces FY27 Outlook
ROK expects reported sales growth of 4.5-7.5% in fiscal 2027, with organic sales projected to increase 6-9%. The company anticipates revenues of $9.5 billion at the midpoint of its guidance. Organic ARR is expected to grow 7%.
The company projects adjusted EPS of $14.50-$15.50 for fiscal 2027, implying 11.8% growth at the midpoint from fiscal 2026's $13.42. Enterprise operating margin is expected to reach 23%, while the free cash flow conversion is projected at 100%. The outlook incorporates the expected impact of the Sensia divestiture and the fiscal 2026 customer tariff refund program.
ROK Stock’s Price Performance
In the past year, ROK shares have gained 22.4% compared with the industry’s 5.5% growth.
Teradyne, Inc. (TER - Free Report) reported third-quarter 2026 adjusted earnings of $2.29 per share, surging 169.4% year over year and beating the Zacks Consensus Estimate of $2.04. Teradyne’s revenues increased 69.8% year over year to $1.31 billion and surpassed the consensus mark of $1.27 billion.
KLA Corporation (KLAC - Free Report) registered first-quarter fiscal 2027 adjusted earnings of $1.22 per share, up 38.6% year over year. Earnings beat the Zacks Consensus Estimate of $1.18. KLA Corp’s revenues increased 28.9% year over year to $4.14 billion and surpassed the consensus mark of $4.05 billion.
The Timken Company (TKR - Free Report) posted an adjusted EPS of $1.65 in the third quarter of 2026, beating the Zacks Consensus Estimate of $1.47. The company’s bottom line increased from the EPS of $1.37 in the year-ago quarter. Timken’s total revenues were $1.22 billion, up from $1.16 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.21 billion.
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Rockwell Automation Q4 Earnings Beat Estimates on Margin Gains
Key Takeaways
Rockwell Automation Inc. (ROK - Free Report) has reported adjusted earnings per share (EPS) of $3.88 in the fourth quarter of fiscal 2026 (ended Sept. 30, 2026), beating the Zacks Consensus Estimate of $3.72 by 4.3%. The bottom line increased 16.2% from $3.34 in the year-ago quarter, benefiting from higher sales volume, favorable currency and an improved operating margin.
Including one-time items, earnings were $3.11 per share compared with $1.23 in the prior-year quarter.
Revenues increased 0.7% year over year to $2.33 billion but missed the consensus estimate of $2.39 billion by 2.3%. Organic sales increased 3%, while organic annual recurring revenues (ARR) grew 5%. We expected organic sales to increase 3.5% in the quarter.
Rockwell Automation, Inc. Price, Consensus and EPS Surprise
Rockwell Automation, Inc. price-consensus-eps-surprise-chart | Rockwell Automation, Inc. Quote
Rockwell Automation's Margin Performance in Q4
The cost of sales declined 6.2% year over year to $1.12 billion. Gross profit increased 8% to $1.21 billion. The gross margin expanded to 51.9% from 48.4% in the prior-year quarter.
Selling, general and administrative expenses increased 20.2% to $566 million. Enterprise operating profit rose 16% year over year to $572 million. The enterprise operating margin expanded 320 basis points to 24.5%, including a favorable 130-basis-point impact of tariff refund-related items.
ROK’s Segmental Results in Q4
Intelligent Devices: Net revenues amounted to $1.14 billion, up 5% year over year from $1.09 billion. The reported figure beat our estimate of $1.10 billion. Organic sales increased 5%, while currency translation and divestitures had negligible impacts on growth.
The segment’s operating earnings increased 14.9% year over year to $247 million from $215 million. We predicted the segment’s operating earnings to be $235 million. The segment’s operating margin increased to 21.6% from 19.8%, driven by higher sales volume, favorable currency, positive price-cost dynamics and a favorable mix. This was partially offset by higher compensation expenses.
Software & Control: Net revenues grew 15% year over year to $754 million from $657 million. Reported revenues surpassed our estimate of $730 million. Organic sales increased 15%, while currency translation and divestitures had negligible impacts on growth.
The segment’s operating earnings increased 24.9% year over year to $256 million from $205 million. We predicted segmental operating earnings of $226 million. The segment’s operating margin increased to 34% from 31.2%. The improvement was primarily driven by higher organic sales.
Lifecycle Services: Net revenues for the segment were $519 million, down 9% year over year from $573 million. We projected the segment’s sales to be $501 million. Organic sales increased 2%, while divestitures reduced sales growth by 11 percentage points. Currency translation had a negligible impact.
The segment’s operating earnings declined 15% year over year to $85 million from $100 million. Our estimate for the segment’s operating earnings was $76 million. The segment’s operating margin decreased to 16.4% from 17.5%, reflecting higher compensation expenses and an unfavorable project mix. This was partially offset by the margin benefit from the Sensia joint venture dissolution and higher sales volume. The segment reported a book-to-bill ratio of 0.97.
Rockwell Automation's FY26 Performance
ROK reported adjusted EPS of $13.42 in fiscal 2026, up 27.4% from $10.53 in fiscal 2025. The figure beat the Zacks Consensus Estimate of $13.26. The improvement was driven by higher sales volume, favorable currency, improved operating margin and a lower share count.
Including one-time items, ROK’s earnings were $12.54 per share compared with $7.67 in the prior year.
Revenues increased 7.8% year over year to $8.99 billion from $8.34 billion. However, the figure beat the Zacks Consensus Estimate of $9.03 billion. Organic sales grew 8%, while organic ARR increased 5%. The enterprise operating margin expanded to 22.2% from 18.9% in fiscal 2025, reflecting strong operating performance.
ROK's Cash Flow & Financial Position
Cash provided by operating activities totaled $680 million in the fiscal fourth quarter compared with $454 million in the prior-year period. The free cash flow increased to $602 million from $405 million, supported by improved profitability and tariff refund-related cash receipts.
Rockwell Automation ended fiscal 2026 with cash and cash equivalents of $433 million compared with $468 million a year earlier. Total debt stood at $3.28 billion.
Rockwell Automation Introduces FY27 Outlook
ROK expects reported sales growth of 4.5-7.5% in fiscal 2027, with organic sales projected to increase 6-9%. The company anticipates revenues of $9.5 billion at the midpoint of its guidance. Organic ARR is expected to grow 7%.
The company projects adjusted EPS of $14.50-$15.50 for fiscal 2027, implying 11.8% growth at the midpoint from fiscal 2026's $13.42. Enterprise operating margin is expected to reach 23%, while the free cash flow conversion is projected at 100%. The outlook incorporates the expected impact of the Sensia divestiture and the fiscal 2026 customer tariff refund program.
ROK Stock’s Price Performance
In the past year, ROK shares have gained 22.4% compared with the industry’s 5.5% growth.
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Rockwell Automation’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). 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 third-quarter 2026 adjusted earnings of $2.29 per share, surging 169.4% year over year and beating the Zacks Consensus Estimate of $2.04. Teradyne’s revenues increased 69.8% year over year to $1.31 billion and surpassed the consensus mark of $1.27 billion.
KLA Corporation (KLAC - Free Report) registered first-quarter fiscal 2027 adjusted earnings of $1.22 per share, up 38.6% year over year. Earnings beat the Zacks Consensus Estimate of $1.18. KLA Corp’s revenues increased 28.9% year over year to $4.14 billion and surpassed the consensus mark of $4.05 billion.
The Timken Company (TKR - Free Report) posted an adjusted EPS of $1.65 in the third quarter of 2026, beating the Zacks Consensus Estimate of $1.47. The company’s bottom line increased from the EPS of $1.37 in the year-ago quarter. Timken’s total revenues were $1.22 billion, up from $1.16 billion in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.21 billion.