Rockwell Automation Reports Fourth Quarter and Full Year 2026 Results; Introduces Fiscal 2027 Guidance
ROCKWELL AUTOMATION, INC (ROK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 1201 S. Second Street Milwaukee, WI 53204 USA News Release Contact Ed Moreland Media Relations Rockwell Automation 571.296.0391 Aijana Zellner Investor Relations Rockwell Automation 440.289.8439 Rockwell Automation Reports Fourth Quarter and Full Year 2026 Results; Int
How this was made
The 30-second read
Why it matters
The earnings beat and guidance suggest a bullish outlook for the stock.
Market read
First‑report earnings and guidance for a large‑cap industrial player, likely to move the stock.
What to watch
Potential headwinds from higher compensation and restructuring charges could temper profit growth.
Rockwell Automation Reports Fourth Quarter and Full Year 2026 Results; Introduces Fiscal 2027 Guidance
Fiscal 2026 sales grew 8%, Enterprise operating profit grew 27%, Adjusted EPS grew 27%, and free cash flow rose to $1,701 million. Fourth-quarter reported sales growth was limited to 1% by the customer tariff refund program, while organic sales grew 3% and Software & Control sales rose 15%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 fiscal 2026 total salesGAAP | $2.33B | – | up 1% |
| Q4 fiscal 2026 organic sales growthnon-GAAP | 3% | – | 3% |
| Q4 fiscal 2026 gross profitGAAP | $1.21B | – | – |
| Q4 fiscal 2026 gross profit as percent of salesGAAP | 51.9% | – | – |
| Q4 fiscal 2026 SG&A expenseGAAP | −$566M | – | – |
| Q4 fiscal 2026 engineering and development expenseGAAP | −$189M | – | – |
| Q4 fiscal 2026 income before income taxesGAAP | $433M | – | – |
| Q4 fiscal 2026 pre-tax marginGAAP | 18.6% | – | – |
| Q4 fiscal 2026 Enterprise operating profitnon-GAAP | $572M | – | up 16% |
| Q4 fiscal 2026 Enterprise operating marginnon-GAAP | 24.5% | – | – |
| Q4 fiscal 2026 net incomeGAAP | $346M | – | – |
| Q4 fiscal 2026 net income attributable to Rockwell Automation, Inc.GAAP | $346M | – | – |
| Q4 fiscal 2026 diluted EPSGAAP | $3.11 | – | up 153% |
| Q4 fiscal 2026 Adjusted EPSnon-GAAP | $3.88 | – | up 16% |
| Q4 fiscal 2026 effective tax rateGAAP | 20.1% | – | – |
| Q4 fiscal 2026 Adjusted Effective Tax Ratenon-GAAP | 20.9% | – | – |
| Q4 fiscal 2026 Adjusted EBITDAnon-GAAP | $620M | – | – |
| Q4 fiscal 2026 Adjusted EBITDA marginnon-GAAP | 26.6% | – | – |
| Q4 fiscal 2026 cash provided by operating activitiesGAAP | $680M | – | – |
| Q4 fiscal 2026 free cash flownon-GAAP | $602M | – | – |
| Fiscal 2026 total salesGAAP | $8.99B | – | 8% |
| Fiscal 2026 organic sales growthnon-GAAP | 8% | – | 8% |
| Fiscal 2026 gross profitGAAP | $4.50B | – | – |
| Fiscal 2026 gross profit as percent of salesGAAP | 50.0% | – | – |
| Fiscal 2026 SG&A expenseGAAP | −$2.01B | – | – |
| Fiscal 2026 engineering and development expenseGAAP | −$714M | – | – |
| Fiscal 2026 income before income taxesGAAP | $1.69B | – | – |
| Fiscal 2026 pre-tax marginGAAP | 18.7% | – | – |
| Fiscal 2026 Enterprise operating profitnon-GAAP | $2.00B | – | up 27% |
| Fiscal 2026 Enterprise operating marginnon-GAAP | 22.2% | – | – |
| Fiscal 2026 net incomeGAAP | $1.41B | – | – |
| Fiscal 2026 net income attributable to Rockwell Automation, Inc.GAAP | $1.41B | – | – |
| Fiscal 2026 diluted EPSGAAP | $12.54 | – | up 63% |
| Fiscal 2026 Adjusted EPSnon-GAAP | $13.42 | – | up 27% |
| Fiscal 2026 effective tax rateGAAP | 16.5% | – | – |
| Fiscal 2026 Adjusted Effective Tax Ratenon-GAAP | 19.6% | – | – |
| Fiscal 2026 Adjusted EBITDAnon-GAAP | $2.18B | – | – |
| Fiscal 2026 Adjusted EBITDA marginnon-GAAP | 24.3% | – | – |
| Fiscal 2026 cash provided by operating activitiesGAAP | $1.96B | – | up 27% |
| Fiscal 2026 free cash flownon-GAAP | $1.70B | – | up 25% |
| Fiscal 2026 free cash flow conversionnon-GAAP | 113% | – | – |
| Fiscal 2026 ROICGAAP | 23.3% | – | – |
| Fiscal 2026 Adjusted ROICnon-GAAP | 20.4% | – | – |
| Organic ARR growth at end of Q4 fiscal 2026non-GAAP | 5% | – | 5% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Intelligent Devices Q4 fiscal 2026Segment operating margin increased to 21.6% from 19.8%, driven by higher sales volume, favorable currency, positive price/cost, and favorable mix, partially offset by higher compensation. | $1.14B | – | 5% reported and organic increase |
| Software & Control Q4 fiscal 2026Segment operating margin increased to 34.0% from 31.2%, driven by higher sales volume. | $754M | – | 15% reported and organic increase |
| Lifecycle Services Q4 fiscal 2026Divestitures decreased sales by (11)%. Segment operating margin decreased to 16.4% from 17.5% due to higher compensation and unfavorable project mix, partially offset by the Sensia joint venture dissolution and higher sales volume. | $519M | – | (9)% reported decrease; organic sales increased 2% |
| Intelligent Devices fiscal 2026Segment operating margin increased to 20.0% from 18.0%, driven by higher sales volume, productivity, and favorable mix, partially offset by higher compensation. | $4.18B | – | 11% increase; organic sales increased 10% |
| Software & Control fiscal 2026Segment operating margin increased to 33.8% from 29.7%, driven by higher sales volume, partially offset by higher compensation. | $2.82B | – | 18% increase; organic sales increased 17% |
| Lifecycle Services fiscal 2026Divestitures decreased sales by (6)% and currency translation increased sales by 2%. Segment operating margin increased to 15.1% from 14.5% due to strong project execution and the Sensia joint venture dissolution, partially offset by higher compensation. | $2.07B | – | (6)% decrease; organic sales decreased by (2)% |
Fiscal 2027 outlook
- RevenueReported sales growth 4.5% - 7.5%; Organic sales growth 6% - 9%
- Tax rateEffective tax rate ~ 20%; Adjusted effective tax rate ~ 20%
- NoteDiluted EPS $13.78 - $14.78
- NoteAdjusted EPS $14.50 - $15.50
- NoteInorganic sales growth ~ —%
- NoteDivestiture ~ (1.5)%
- NoteCurrency translation ~ —%
- NoteReported and Organic sales growth include a ~1 percentage point benefit from the FY26 customer tariff refund program.
- NoteNon-operating pension and postretirement benefit credit, net of tax (0.09)
- NoteAmortization of acquisition-related intangible assets attributable to Rockwell Automation, net of tax 0.81
Capital returns
- The Company repurchased approximately 1.2 million shares of its common stock at a cost of $500 million during the fourth quarter of fiscal 2026.
- For the full fiscal year 2026, the Company repurchased 3.1 million shares of its common stock at a cost of $1,254 million.
- At September 30, 2026, $673 million remained available under the existing share repurchase authorization.
- Cash dividends were $(618) million for fiscal 2026, compared to $(591) million for fiscal 2025.
- Purchases of treasury stock were $(1,256) million for fiscal 2026, compared to $(425) million for fiscal 2025.
What drove it
- The Company received $103 million of IEEPA tariff refunds and $5 million of related interest in the fourth quarter of fiscal 2026.
- The Company recognized an accrual of $85 million for estimated customer refunds as a reduction of sales under the customer tariff refund program.
- The after-tax net impact of IEEPA tariff refunds, including interest, the customer tariff refund program, and related non-recurring charges was $0.11 in diluted EPS and Adjusted EPS.
- Fourth-quarter Enterprise operating margin expansion was driven by higher sales volume, IEEPA tariff refund related items, favorable mix, and the Sensia joint venture dissolution.
- Full-year Enterprise operating margin expansion was driven by higher sales volume, price realization, favorable mix, productivity, and IEEPA tariff refund related items.
- Organic ARR grew 5% year over year and software ARR grew high single digits year over year.
Concerns
- The customer tariff refund program reduced fourth-quarter reported and organic sales by ~(4) percentage points and full-year reported and organic sales by (1) percentage point.
- Lifecycle Services reported sales decreased (9)% in the fourth quarter and (6)% for fiscal 2026; full-year organic sales decreased by (2)%.
- Lifecycle Services fourth-quarter segment operating margin declined to 16.4% from 17.5% due to higher compensation and unfavorable project mix.
- Higher compensation, a $50 million charitable contribution, and restructuring charges partially offset fourth-quarter and full-year profitability drivers.
- Fiscal 2027 reported and organic sales growth guidance includes a ~1 percentage point benefit from the FY26 customer tariff refund program.
What to watch
- Delivery against fiscal 2027 reported sales growth guidance of 4.5% - 7.5% and organic sales growth guidance of 6% - 9%.
- The performance of Software & Control after 15% fourth-quarter reported and organic sales growth and 34.0% segment operating margin.
- Whether Lifecycle Services returns to organic growth and sustains its fiscal 2026 margin improvement.
- The earnings and cash flow effects of IEEPA tariff refunds, customer refunds, and related non-recurring charges.
- Progress toward fiscal 2027 diluted EPS guidance of $13.78 - $14.78 and Adjusted EPS guidance of $14.50 - $15.50.
Balance sheet and cash flow
- Cash and cash equivalents were $433 million at September 30, 2026, compared to $468 million at September 30, 2025.
- Short-term debt was $711 million and long-term debt was $2,569 million at September 30, 2026, compared to $610 million and $2,614 million, respectively, at September 30, 2025.
- Fiscal 2026 capital expenditures were $(257) million, compared to $(186) million in fiscal 2025.
- Cash used for investing activities was $(301) million in fiscal 2026, compared to $(216) million in fiscal 2025.
- Cash used for financing activities was $(1,694) million in fiscal 2026, compared to $(1,335) million in fiscal 2025.
- Cash and cash equivalents decreased $(35) million in fiscal 2026, compared to a decrease of $(3) million in fiscal 2025.
Analysis
Rockwell closed fiscal 2026 with broad-based full-year growth and substantial profit expansion. Sales were $8,989 million, up 8%, with organic sales also up 8%. Enterprise operating profit increased 27% to $1,997 million and Enterprise operating margin expanded to 22.2% from 18.9%. GAAP diluted EPS rose 63% to $12.54, while Adjusted EPS increased 27% to $13.42. The larger GAAP earnings increase reflected higher pre-tax income alongside a prior-year impairment charge and asbestos-related items.
Fourth-quarter sales of $2,332 million increased 1%, while organic sales increased 3%. The customer tariff refund program reduced both reported and organic sales by ~(4) percentage points in the quarter. Intelligent Devices and Software & Control delivered reported and organic growth of 5% and 15%, respectively. Lifecycle Services remained the exception, with reported sales down (9)% because divestitures reduced sales by (11)%, although its organic sales increased 2%.
Profitability improved across the enterprise. Fourth-quarter gross profit as a percent of sales was 51.9%, compared with 48.4% a year earlier, while Enterprise operating margin reached 24.5%, compared with 21.3%. The release cites higher sales volume, favorable mix, price realization, productivity, IEEPA tariff refund related items, and the Sensia joint venture dissolution as contributors. Higher compensation, restructuring charges, and the $50 million charitable contribution were offsets. Software & Control stood out with a 34.0% fourth-quarter segment operating margin, while Lifecycle Services margin declined to 16.4% due to compensation and project mix.
Cash generation strengthened materially. Fiscal 2026 cash provided by operating activities rose to $1,958 million and free cash flow rose to $1,701 million, with both benefiting from $108 million of tariff refunds and related interest income. The company repurchased 3.1 million shares for $1,254 million during the year, paid $(618) million of cash dividends, and ended the year with $433 million of cash and cash equivalents, $711 million of short-term debt, and $2,569 million of long-term debt.
Fiscal 2027 guidance calls for reported sales growth of 4.5% - 7.5%, organic sales growth of 6% - 9%, diluted EPS of $13.78 - $14.78, and Adjusted EPS of $14.50 - $15.50. The sales growth outlook includes a ~1 percentage point benefit from the FY26 customer tariff refund program, while divestiture is expected to be ~(1.5)%. The outlook assumes an effective tax rate and Adjusted effective tax rate of ~20%.
Management, verbatim
Rockwell delivered a strong finish to a great year, with broad-based topline growth, margin expansion, and double-digit earnings growth. Our results underscore the differentiation of our strategy and operating model, as we continue to gain share, strengthen our leadership in core markets, and expand our position in high-growth areas including semiconductor and data centers.
Blake Moret, Chairman and CEO
We enter fiscal 2027 from a position of strength, with healthy customer demand and significant new product releases. As industrial operations become increasingly AI-enabled and autonomous, Rockwell is uniquely positioned to orchestrate plant-wide workflows. We are committed to growing customer value, increasing market share, and expanding margins.
Blake Moret, Chairman and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported revenue, segment revenue, earnings, margins, EPS, cash flow, ARR, and balance-sheet metrics were not provided.
- Fiscal 2027 guidance for gross margin, operating expenses, free cash flow, capital expenditures, share repurchases, dividends, cash, and debt was not provided.
- GAAP operating income was not separately reported.
- A quantified software ARR growth figure was not provided; the release described software ARR growth as high single digits year over year.
- No prior outlook section was provided, so comparison of actual results with prior guidance is unavailable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Rockwell Automation filed an SEC Form 8‑K reporting FY2026 results and FY2027 guidance.
Ticker impact
Rockwell Automation reported FY2026 earnings with double‑digit EPS growth and issued FY2027 sales and EPS guidance.
likely upward pressure as investors price in higher sales growth and EPS outlook
The 8‑K filing is the first public disclosure of FY2026 results and FY2027 guidance, showing 63% EPS growth YoY and projected EPS of $13.78‑$14.78, which should attract buying interest.
Market effects
Automation and industrial control sector may see broader rally on strong earnings.
U.S. industrial stocks could benefit from the positive outlook.
May influence global supply‑chain investors tracking automation demand.
Counterpoint
If the tariff refund benefits are one‑off, the guidance may be overstated.
Key entities
- companyRockwell Automation
Industrial automation equipment manufacturer.
