Rockwell Automation (NYSE:ROK) Releases Quarterly Earnings Results, Beats Estimates By $0.29 EPS

Rockwell Automation (NYSE:ROK) released its quarterly earnings data on Thursday. The industrial products company reported $2.75 EPS for the quarter, topping analysts’ consensus estimates of $2.46 by $0.29, FiscalAI reports. Rockwell Automation had a net margin of 10.42% and a return on equity of 32.69%. The firm had revenue of $2.11 billion during the quarter, compared to analysts’ expectations of $2.08 billion. During the same period in the previous year, the business posted $1.83 earnings per share. The company’s revenue for the quarter was up 11.9% compared to the same quarter last year. Rockwell Automation updated its FY 2026 guidance to 11.400-12.200 EPS.

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

• Rockwell beat expectations in Q1 with double‑digit sales growth, adjusted EPS of $2.75, and total company segment margin of 20.7%, driven by higher volume, favorable mix and productivity.
• Software & Control was a standout: organic sales +17%, Logix North America sales >25%, strong early adoption of the new L9 controller, and Plex delivered its best quarter with notable customer wins (e.g., R.H. Sheppard).
• Companywide productivity and margin initiatives (commercial spend, direct material, supply chain efficiencies and AI adoption) are expanding gross margins and support management’s target of >100 bps segment margin expansion for the year and >40% incremental margins.
• Macro and trade uncertainty (tariffs, regional conflict) is keeping some large CapEx projects on hold, Lifecycle Services revenue declined 6% in Q1, and the Sensia JV dissolution will remove ~$250M of annualized sales (with modest margin improvement).
• Outlook unchanged: fiscal‑2026 organic sales guidance of 2%–6% (midpoint assumes gradual improvement), adjusted EPS midpoint raised to $11.80, free cash flow conversion targeted at ~100% and ~$500M of planned share repurchases.

Rockwell Automation Trading Down 5.9%

ROK stock traded down $25.33 during midday trading on Thursday, reaching $404.52. The company’s stock had a trading volume of 1,857,692 shares, compared to its average volume of 765,228. The stock has a fifty day simple moving average of $406.96 and a two-hundred day simple moving average of $371.99. Rockwell Automation has a 1 year low of $215.00 and a 1 year high of $438.72. The firm has a market capitalization of $45.41 billion, a price-to-earnings ratio of 53.09, a PEG ratio of 3.02 and a beta of 1.52. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.77 and a current ratio of 1.14.

Rockwell Automation News Roundup

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

• Positive Sentiment: Q1 results beat expectations: Rockwell reported $2.75 EPS and $2.10B revenue, ahead of consensus, with organic sales up ~10% and margin expansion driven by higher volumes — a clear operational beat that supports earnings momentum. ROK Q1 Earnings Surpass Estimates
• Positive Sentiment: Company raised its full‑year profit outlook relative to its prior guidance (management cites stronger demand and profit leverage), which supports the view of durable margin improvement and cash flow. Rockwell Automation Lifts Guidance as Profit Jumps
• Neutral Sentiment: Analyst reactions and price‑target activity are mixed but generally supportive: several firms reaffirmed or updated models after the print, leaving a range of opinions that could sustain volatility. Top Wall Street Forecasters Revamp Expectations
• Neutral Sentiment: Market commentary frames the recent pullback as a potential buying opportunity given multi-year growth drivers (automation, software, onshoring) and continued capital returns — useful context but not an immediate catalyst. MarketBeat: February Pullback Signal
• Negative Sentiment: Guidance vs. Street: the FY‑2026 EPS range (11.40–12.20) and revenue guide (~$8.8B) sit at or slightly below some consensus numbers, which prompted investor caution despite the quarter’s strength. Company FY2026 Guidance Update
• Negative Sentiment: Shares sold off on the report and conference‑call tone — Benzinga and other outlets note the immediate market reaction as investors focused on the cautious elements of the outlook rather than the beat. What’s Going On With Rockwell Automation Stock
• Negative Sentiment: Prior analyst skepticism: Oppenheimer recently lowered its rating, arguing some operational gains may already be priced in — a reminder that some firms see limited near‑term upside. Oppenheimer Downgrade Coverage

Insider Buying and Selling

In other news, SVP Rebecca W. House sold 1,698 shares of the stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $402.06, for a total value of $682,697.88. Following the completion of the transaction, the senior vice president owned 12,200 shares of the company’s stock, valued at approximately $4,905,132. This represents a 12.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Scott Genereux sold 1,387 shares of the stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $402.03, for a total transaction of $557,615.61. Following the completion of the transaction, the vice president directly owned 4,514 shares of the company’s stock, valued at $1,814,763.42. This trade represents a 23.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 25,531 shares of company stock valued at $10,259,637 over the last three months. Company insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On Rockwell Automation

Several institutional investors have recently added to or reduced their stakes in ROK. Balyasny Asset Management L.P. raised its holdings in shares of Rockwell Automation by 1,666.2% during the third quarter. Balyasny Asset Management L.P. now owns 321,722 shares of the industrial products company’s stock valued at $112,451,000 after acquiring an additional 303,506 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Rockwell Automation by 126.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 321,964 shares of the industrial products company’s stock valued at $112,536,000 after purchasing an additional 179,606 shares during the last quarter. Worldquant Millennium Advisors LLC increased its stake in shares of Rockwell Automation by 81.3% during the second quarter. Worldquant Millennium Advisors LLC now owns 333,161 shares of the industrial products company’s stock worth $110,666,000 after purchasing an additional 149,379 shares in the last quarter. Nissay Asset Management Corp Japan boosted its position in shares of Rockwell Automation by 1,030.6% during the 3rd quarter. Nissay Asset Management Corp Japan now owns 161,637 shares of the industrial products company’s stock worth $56,497,000 after purchasing an additional 147,340 shares during the period. Finally, Man Group plc raised its stake in shares of Rockwell Automation by 80.7% during the third quarter. Man Group plc now owns 300,689 shares of the industrial products company’s stock worth $105,100,000 after purchasing an additional 134,313 shares during the last quarter. Institutional investors own 75.75% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on ROK shares. JPMorgan Chase & Co. increased their price objective on shares of Rockwell Automation from $400.00 to $404.00 and gave the company a “neutral” rating in a report on Friday, January 16th. Citigroup upped their price target on shares of Rockwell Automation from $439.00 to $466.00 and gave the company a “buy” rating in a report on Monday, December 8th. Argus raised Rockwell Automation to a “strong-buy” rating in a research report on Friday, January 16th. Oppenheimer downgraded shares of Rockwell Automation from an “outperform” rating to a “market perform” rating in a research report on Tuesday, January 20th. Finally, Rothschild & Co Redburn increased their price target on shares of Rockwell Automation from $335.00 to $365.00 and gave the company a “neutral” rating in a research note on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $410.12.

Rockwell Automation Company Profile

Rockwell Automation is a global industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. The firm designs, manufactures and supports control systems, industrial control hardware and software, and related services that help manufacturers and industrial operators automate processes, improve productivity and enable data-driven decision making. Rockwell traces its heritage to the Allen-Bradley and Rockwell automation businesses and positions itself as a provider of integrated automation solutions across discrete and process industries.

The company’s product portfolio includes programmable logic controllers (PLCs), human-machine interfaces (HMIs), variable frequency drives, sensors, safety components and other industrial control hardware, often marketed under the Allen-Bradley brand.