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

Rockwell Automation (NYSE:ROK) issued its earnings results on Thursday. The industrial products company reported $3.88 EPS for the quarter, topping 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 company had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.41 billion. During the same period in the previous year, the firm earned $3.34 earnings per share. The firm’s revenue for the quarter was up .7% on a year-over-year basis. 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 ROK traded down $5.55 on Friday, hitting $375.50. 2,211,793 shares of the stock traded hands, compared to its average volume of 984,129. The business has a 50 day simple moving average of $429.38 and a 200 day simple moving average of $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. Rockwell Automation has a one year low of $347.53 and a one year high of $497.36. The company has a market capitalization of $41.70 billion, a PE 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 declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Monday, November 16th will be given a dividend of $1.45 per share. This represents a $5.80 annualized dividend and a dividend yield of 1.5%. This is an increase from Rockwell Automation’s previous quarterly dividend of $1.38. The ex-dividend date of this dividend is Monday, November 16th. Rockwell Automation’s payout ratio is 51.73%.

Trending Headlines about Rockwell Automation

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

Analyst Ratings Changes

ROK has been the subject of a number of recent analyst reports. Stephens decreased their target price on Rockwell Automation from $550.00 to $500.00 and set an “overweight” rating for the company in a report on Friday. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Rockwell Automation from $469.00 to $500.00 and gave the company a “hold” rating in a research report on Wednesday, September 30th. Sanford C. Bernstein lifted their price objective on Rockwell Automation from $501.00 to $514.00 and gave the company a “market perform” rating in a research report on Friday, August 14th. The Goldman Sachs Group dropped their price target on Rockwell Automation from $510.00 to $485.00 and set a “neutral” rating on the stock in a research report on Wednesday, September 30th. Finally, Weiss Ratings raised Rockwell Automation from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, October 26th. Nine investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat.com, Rockwell Automation currently has an average rating of “Hold” and an average target price of $471.33.

Insiders Place Their Bets

In other news, Director Patricia A. Watson sold 1,100 shares of Rockwell Automation stock in a transaction that occurred 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 sale, the director directly owned 6,385 shares in the company, valued at $2,754,680.55. The trade was a 14.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Christian E. Rothe sold 590 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $434.30, for a total transaction of $256,237.00. Following the transaction, the chief financial officer directly owned 10,429 shares of the company’s stock, valued at $4,529,314.70. The trade was a 5.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last ninety days, insiders sold 2,711 shares of company stock valued at $1,164,880. Company insiders own 0.76% of the company’s stock.

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.