Rockwell Automation (NYSE:ROK) Posts Earnings Results, Beats Expectations By $0.29 EPS

Rockwell Automation (NYSE:ROK) released its earnings results on Thursday. The industrial products company reported $2.75 earnings per share for the quarter, beating analysts’ consensus estimates of $2.46 by $0.29, FiscalAI reports. Rockwell Automation had a net margin of 11.56% and a return on equity of 46.81%. The business had revenue of $2.11 billion during the quarter, compared to the consensus estimate of $2.08 billion. During the same quarter last year, the firm earned $1.83 earnings per share. The firm’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 Stock Performance

Shares of ROK traded up $7.70 during mid-day trading on Friday, hitting $414.40. 2,180,083 shares of the company’s stock were exchanged, compared to its average volume of 777,002. The company has a quick ratio of 0.77, a current ratio of 2.31 and a debt-to-equity ratio of 47.67. Rockwell Automation has a 52 week low of $215.00 and a 52 week high of $438.72. The stock’s 50-day simple moving average is $407.64 and its 200-day simple moving average is $372.66. The firm has a market cap of $46.52 billion, a price-to-earnings ratio of 47.41, a price-to-earnings-growth ratio of 2.89 and a beta of 1.52.

Trending Headlines about Rockwell Automation

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

• Positive Sentiment: Q1 results beat expectations — EPS $2.75 vs. consensus (~$2.46) and revenue ~ $2.11B with organic sales up ~10–12%; management highlighted margin expansion and operating leverage. ROK Q1 Earnings Surpass Estimates
• Positive Sentiment: Business mix strength: Intelligent Devices and Software & Control showed notable growth; annual recurring revenue rose, supporting visibility and longer‑term margin expansion. Rockwell Q1 segment and ARR details
• Neutral Sentiment: FY‑2026 EPS guidance was set to a range (11.40–12.20), roughly in line with management’s prior view but near the Street midpoint — supportive for the long run but not aggressively above expectations. Rockwell Automation Lifts Guidance as Profit Jumps
• Neutral Sentiment: Mizuho raised its price target to $400 but kept a “neutral” rating, signaling mixed near‑term conviction despite the stronger quarter. Mizuho raises price target on ROK
• Negative Sentiment: Operating cash flow weakened due to timing/one‑off compensation payments, which some investors flagged as weighing on near‑term free cash flow and capital‑return growth. That contributed to an initial share pullback after the print. ROK cash flow slide weighs on shares
• Negative Sentiment: Market reaction was mixed — despite the beat many traders viewed the guidance tone and cash‑flow notes as reasons to trim positions, producing short‑term volatility. What’s Going On With Rockwell Automation Stock?

Analyst Upgrades and Downgrades

Several analysts have issued reports on ROK shares. Oppenheimer lowered Rockwell Automation from an “outperform” rating to a “market perform” rating in a research note on Tuesday, January 20th. Morgan Stanley boosted their target price on Rockwell Automation from $435.00 to $440.00 and gave the stock an “overweight” rating in a report on Tuesday, January 13th. Stephens raised their price target on Rockwell Automation from $425.00 to $475.00 and gave the company an “overweight” rating in a report on Friday, January 23rd. Citigroup upped their price objective 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. Finally, Bank of America increased their price objective on shares of Rockwell Automation from $410.00 to $430.00 and gave the company a “buy” rating in a research report on Thursday, November 20th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $416.11.

Insider Transactions at Rockwell Automation

In other news, SVP Matheus De A. G. Viera Bulho sold 2,370 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $403.45, for a total transaction of $956,176.50. Following the sale, the senior vice president directly owned 1,964 shares of the company’s stock, valued at approximately $792,375.80. This represents a 54.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Rebecca W. House sold 1,698 shares of the business’s stock in a transaction dated Wednesday, December 10th. The shares were 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 directly owned 12,200 shares of the company’s stock, valued at approximately $4,905,132. This trade represents a 12.22% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 25,531 shares of company stock worth $10,259,637. Corporate insiders own 0.76% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Kelleher Financial Advisors acquired a new stake in shares of Rockwell Automation in the 3rd quarter valued at $62,000. MUFG Securities EMEA plc acquired a new stake in Rockwell Automation in the second quarter valued at about $111,000. Employees Retirement System of Texas bought a new position in shares of Rockwell Automation in the third quarter worth about $136,000. Larson Financial Group LLC boosted its stake in shares of Rockwell Automation by 20.8% in the 3rd quarter. Larson Financial Group LLC now owns 493 shares of the industrial products company’s stock valued at $172,000 after purchasing an additional 85 shares in the last quarter. Finally, Wealth Watch Advisors INC bought a new stake in shares of Rockwell Automation during the 3rd quarter valued at approximately $188,000. 75.75% of the stock is owned by institutional investors.

About Rockwell Automation

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.